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The Tri-County Generation and Transmission Association is a nonprofit cooperative organization that pro vides electrical service to rural customers. Based on a faulty long-range demand
- How much will Tri-County need to charge its customers per MWh to break even next year?
- The Tri-County customers balk at that price and conserve electrical energy. Only 95 percent of fore casted demand materializes. What is the resulting surplus or loss for this nonprofit organization?
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Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (11th Edition)
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- Charles Lackey operates a bakery in Idaho Falls,Idaho. Because of its excellent product and excellent location,demand has increased by 25% in the last year. On far too manyoccasions, customers have not been able to purchase the bread oftheir choice. Because of the size of the store, no new ovens can beadded. At a staff meeting, one employee suggested ways to loadthe ovens differently so that more loaves of bread can be baked atone time. This new process will require that the ovens be loadedby hand, requiring additional manpower. This is the only thingto be changed. If the bakery makes 1,500 loaves per month witha labor productivity of 2.344 loaves per labor-hour, how manyworkers will Lackey need to add? (Hint: Each worker works160 hours per month.)arrow_forwardSoutheastern Airlines's daily flight from Atlanta toCharlotte uses a Boeing 737, with all-coach seating for 120 people.In the past, the airline has priced every seat at $140 for theone-way flight. An average of 80 passengers are on each flight.The variable cost of a filled seat is $25. Aysajan Eziz, the newoperations manager, has decided to try a yield revenue approach,with seats priced at $80 for early bookings and at $190 for bookingswithin 1 week of the flight. He estimates that the airline willsell65 seats at the lower price and 35 at the higher price. Variablecost will not change. Which approach is preferable to Mr. Eziz?arrow_forwardIn the context of system management, explain the concept of "capacity planning." How does effective capacity planning contribute to system reliability and performance optimization?arrow_forward
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