Operations Management
13th Edition
ISBN: 9780135173626
Author: HEIZER, Jay, RENDER, Barry, Munson, Chuck
Publisher: Pearson,
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Chapter E, Problem 4DQ
Summary Introduction
To determine: The implications for GL Company.
Introduction:
Learning curve:
Learning curve is based on the premise that when a person is repeating a task or job again and again, the performance of the person on that job or task will improve. It will depict relationship between cost and output over a definitive period of time.
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Students have asked these similar questions
a) Suppose you walk into a large supermarket at 2 am with a friend. Your
friend says, "I can't believe that these stores stay open all night. Only one
out of fifteen checkout lines is open. There can't be more than ten
shoppers in this store. It just doesn't make any sense for this store to be
open all night." What conditions must be true for it to be to the
advantage of the supermarket to stay open all night?
b) Your friend has a large garden and grows fresh fruit and vegetables to be
sold at a local "farmer's market." Last year your friend was the only worker
in the garden, without any additional workers. However, this year your
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"Next summer, I think I'll hire another two workers (so total workers
including myself would go up from 2 to 4) and my output should again
more than double". Is it likely that he could hire more workers and always
continue to reap greater than proportional increases in production? Why?
Assume that a company is considering buying a new piece of equipment for $240,000 that would have a useful
life of five years and no salvage value. The equipment would generate the following estimated annual revenues
and expenses:
Commissions
Insurance
Revenues
$ 112,400
Less operating expenses:
$ 15,000
5,000
48,000
30,000
98,000
$ 14,400
Depreciation
Maintenance
Net operating income
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables
provided.
The internal rate of return for this investment is closest to
Tesla engineering center is trying to decide whether to make or buy a part (#T-63NFT) in its transmission module. Purchasing the part would cost $1.50 each. If they design and produce it themselves, it will result in a per-unit cost of $0.75. However, the design investment would be $50,000. Further, they realize that for this type of part, there is a 30% chance that the part will need to be redesigned at an additional cost of $50,000. Regardless of whether they make or buy the part, Tesla will need 100,000 of these parts. Use decision trees analysis to calculate the expected monetary value (EMV) and make decision. Please draw a decision tree for analysis.
What is the cost if Tesla decide to make the part but the part needs to be redesigned?
What is the cost if Tesla decide to make the part and the part does not need to be redesigned?
What is the EMV if Tesla decide to make the part?
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Chapter E Solutions
Operations Management
Ch. E - Prob. 1DQCh. E - Prob. 2DQCh. E - Prob. 3DQCh. E - Prob. 4DQCh. E - Prob. 5DQCh. E - Prob. 6DQCh. E - Prob. 7DQCh. E - Prob. 8DQCh. E - Prob. 1PCh. E - Prob. 2P
Ch. E - Prob. 3PCh. E - Prob. 4PCh. E - Prob. 5PCh. E - Prob. 6PCh. E - Prob. 7PCh. E - Prob. 8PCh. E - Prob. 9PCh. E - Prob. 10PCh. E - Prob. 11PCh. E - Prob. 12PCh. E - Prob. 13PCh. E - Suad Alwan, the purchasing agent for Dubai...Ch. E - Prob. 15PCh. E - Prob. 16PCh. E - Regional Power owns 25 small power generating...Ch. E - Prob. 18PCh. E - Prob. 19PCh. E - Prob. 20PCh. E - Prob. 21PCh. E - Prob. 22PCh. E - Prob. 23PCh. E - Prob. 24PCh. E - Using the accompanying log-log graph, answer the...Ch. E - Prob. 25PCh. E - Prob. 26PCh. E - Prob. 28PCh. E - Prob. 29PCh. E - Prob. 30PCh. E - Prob. 31PCh. E - Prob. 1CSCh. E - Prob. 2CSCh. E - Prob. 3CS
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