Operations Management
13th Edition
ISBN: 9780136860419
Author: Lee Krajewski
Publisher: Pearson Education
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Textbook Question
Chapter 7, Problem 9P
Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data:
Metters Cabinets projects an annual demand of 24,000 un1ts for the Maxistand. The Maxistand will sell for $120 per unit.
- a. Which process type will maximize the annual profit from producing the Maxistand?
- b. What is the value of this annual profit?
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Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Metters Cabinets projects an annual demand of 24,000 units for the Maxistand. The Maxistand will sell for $120 per unit.a) Which process type will maximize the annual profit from producing the Maxistand?b) What is the value of this annual profit?
Reducing In-Process Inventory
a. To provide a basis of comparison, begin by evaluating the status quo. Determine the expected amount of in-process inventory at the presses and at the inspection station. Then calculate the expected total cost per hour of the in-process inventory, the presses, and the inspector.
b. What would be the effect of proposal 1? Why? Make specific comparisons to the results from part a. Explain this outcome to Jerry Carstairs.
d. Make your recommendations for reducing the average level of in-process inventory at the inspection station and at the group of machines. Be specific in your recommendations, and support them with quantitative analysis like that done in part a. Make specific comparisons to the results from part a, and cite the improvements that your recommendations would yield.
Pls include step by step solution using MS Excel
Company Z wants to change its major producť's production
process. Detailed production cost data of four different process
alternatives are given in the table below. The annual demand for
the product is 60.000 units and the selling price is $120 per unit.
Annualized Fixed Cost
Variable Costs (per unit) ($)
Process Type
of Plant & Equipment
Labor
Material
Energy
Mass Customization
$1,400,000
$1,000,000
$1,600,000
$1,960,000
30
18
12
Intermittent
24
26
20
Repetitive
28
15
12
Continuous
25
15
10
According to the given information about the demand, the value of
annual profit using the best alternative process is $
Chapter 7 Solutions
Operations Management
Ch. 7.S - Prob. 1DQCh. 7.S - Prob. 2DQCh. 7.S - Prob. 3DQCh. 7.S - How is actual, or expected, output computed?Ch. 7.S - Explain why doubling the capacity of a bottleneck...Ch. 7.S - Distinguish between bottleneck time and throughput...Ch. 7.S - Prob. 7DQCh. 7.S - Prob. 8DQCh. 7.S - Prob. 9DQCh. 7.S - Prob. 10DQ
Ch. 7.S - Explain how net present value is an appropriate...Ch. 7.S - Prob. 12DQCh. 7.S - What are the techniques available to operations...Ch. 7.S - Amy Xias plant was designed to produce 7,000...Ch. 7.S - For the past month, the plant in Problem S7.1,...Ch. 7.S - If a plant has an effective capacity of 6,500 and...Ch. 7.S - Prob. 4PCh. 7.S - Material delays have routinely limited production...Ch. 7.S - Prob. 6PCh. 7.S - Southeastern Oklahoma State Universitys business...Ch. 7.S - Under ideal conditions, a service bay at a Fast...Ch. 7.S - A production line at V. J. Sugumarans machine shop...Ch. 7.S - A work cell at Chris Ellis Commercial Laundry has...Ch. 7.S - The three-station work cell Illustrated in Figure...Ch. 7.S - The three-station work cell at Pullman Mfg., Inc....Ch. 7.S - The Pullman Mfg., Inc., three-station work cell...Ch. 7.S - Klassen Toy Company, Inc., assembles two parts...Ch. 7.S - Prob. 15PCh. 7.S - Prob. 16PCh. 7.S - Markland Manufacturing intends to increase...Ch. 7.S - Using the data in Problem S7.17. a. What is the...Ch. 7.S - Given the data in Problem S7.17, at what volume...Ch. 7.S - Janelle Heinke, the owner of HaPeppas!, is...Ch. 7.S - Prob. 21PCh. 7.S - Prob. 22PCh. 7.S - Prob. 23PCh. 7.S - Prob. 24PCh. 7.S - Prob. 25PCh. 7.S - As a prospective owner of a club known as the Red...Ch. 7.S - Prob. 27PCh. 7.S - James Lawsons Bed and Breakfast, in a small...Ch. 7.S - Prob. 33PCh. 7.S - Prob. 34PCh. 7.S - Prob. 35PCh. 7.S - What is the present value of 5,600 when the...Ch. 7.S - Prob. 37PCh. 7.S - Prob. 38PCh. 7.S - Bolds Gym, a health club chain, is considering...Ch. 7.S - Prob. 1VCCh. 7.S - Prob. 2VCCh. 7.S - Prob. 3VCCh. 7 - What is process strategy?Ch. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - What is process redesign?Ch. 7 - Prob. 5DQCh. 7 - Name the tour quadrants of the service process...Ch. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Identify manufacturing firms that compete on each...Ch. 7 - Identify the competitive advantage of each of the...Ch. 7 - Prob. 11DQCh. 7 - Identify the competitive advantage of each of the...Ch. 7 - Prob. 13DQCh. 7 - Prob. 14DQCh. 7 - Prob. 15DQCh. 7 - Explain what a flexible manufacturing system (FMS)...Ch. 7 - Prob. 17DQCh. 7 - Prob. 18DQCh. 7 - Prepare a flowchart tor one of the following: a....Ch. 7 - Prob. 14PCh. 7 - Prepare a time-function map for one of the...Ch. 7 - Prepare a service blueprint for one of the...Ch. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Ski Boards, Inc., wants to enter the market...Ch. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Using Figure 7.6 in the discussion of value-stream...Ch. 7 - Metters Cabinets, Inc., needs to choose a...
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