Operations Management
13th Edition
ISBN: 9780136860419
Author: Lee Krajewski
Publisher: Pearson Education
expand_more
expand_more
format_list_bulleted
Question
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.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents 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
friend hired a worker and production more than doubled. He comments
"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
Scenario
Wanda is horrified when she sees a news report that some dog treats have been recalled because they have caused some dogs to get sick and even die.
Wanda is very careful about her ingredients and uses only chicken, lamb, and bison that come from sustainable farms. Still, these headlines make her
nervous. What if her dog treats make someone's dog sick? What if a batch of her Chicken Cuties is somehow contaminated and a dog dies from eating
them?
For Discussion
Wanda comes to you for advice, not as an attorney, but as someone who knows about the legal environment in business regarding her potential liability.
• What kind of legal exposure does Wanda have, and how can she protect herself against lawsuits?
• How much responsibility do you believe companies should have for the safety of their products?
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
Knowledge Booster
Similar questions
- 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? What is the EMV if Tesla decide to buy the part? How would the “30% chance for redesign” come from?…arrow_forwardRead the scenario and then, using the table (if you prefer) , tell us the pros and cons for each of the options (A,B,&C) from both the customer and salesperson's perspective while considering the circumstances. Pros - Customer & Salesperson Perspective Cons - Customer & Salesperson Perspective option A Customer: Salesperson: Customer: Salesperson: Option B Customer: Salesperson: Customer: Salesperson: Option C Customer: Salesperson: Customer: Salesperson:arrow_forwardRollin King and Herb Kelleher started Southwest Airlines in 1971 with this idea: if they could take airline passengers where they want to go, on time, at the lowest possible price, and have a good time while doing it, people would love to fly their airline. The result? No other airline in the industry's history has enjoyed the customer loyalty and extended profitability for which Southwest is now famous. The company now flies more than 3,400 times each day to over 64 destinations across the United States There's more to the story, however, than making promises and hoping to fulfill them. A large part of Southwest Airlines' success lies in its ability to plan long-term capacity to better match demand, as also improving the utilization of its fleet by turning around an aircraft at the gate faster than its competitors. Capacity at Southwest is measured in seat miles, and even a single minute reduction in aircraft turnaround time system wide means addi tional seat-miles being added to…arrow_forward
- A company, Martell MisMatch, is comprised of 4 units: Bob's cufflinks, Jennifer's Speakers, Cathy's ChatBox and Evan's Energy Drinks. Match the following SBU situations with the appropriate cell in the Boston Consulting Grid (BCG). Use each answer only once. Bob's cufflinks: slow market growth with #1 market share Jennifer's speakers: slow industry growth, low market share/cash flow Cathy's ChatBox: fast industry & growing, relative market share 1 [Choose ] [Choose ] [Choose ] [Choose ]arrow_forwardWith a team of three or four other students, find a description of a manager in a corporation in Business Week, Forbes, Fortune, Wall Street Journal, or another business publication or do your research on the web. Gather information about what the manager does and the role he or she plays in the company. Identify the organizational level and business function where this manager works. Make a list of the kinds of decisions this manager has to make and the kind of information that manager would need for those decisions. Suggest how information systems could supply this information. If possible, use Google Docs and Google Drive or Google Sites to brainstorm, organize, and develop a presentation of your findings for the class. Case Study How much Does Data-Driven Planting Help Farmers? As in many other businesses, information technology is reshaping farming. Many tractors and combines today are guided by Global Positioning System (GPS) satellite-based navigation systems.…arrow_forwardStatement of the Problem and Solutions Rollin King and Herb Kelleher started Southwest Airlines in 1971 with this idea: if they could take airline passengers where they want to go, on time, at the lowest possible price, and have a good time while doing it, people would love to fly their airline. The result? No other airline in the industry's history has enjoyed the customer loyalty and extended profitability for which Southwest is now famous. The company now flies more than 3,400 times each day to over 64 destinations across the United States There's more to the story, however, than making promises and hoping to fulfill them. A large part of Southwest Airlines' success lies in its ability to plan long-term capacity to better match demand, as also improving the utilization of its fleet by turning around an aircraft at the gate faster than its competitors. Capacity at Southwest is measured in seat miles, and even a single minute reduction in aircraft turnaround time system wide means…arrow_forward
- 9. Which of the following answer choices demonstrates an example of sustainability in business? - A company is very profitable and will sustain its earnings for many years A company makes decisions that will allow it to last for many years A company focuses first on helping society and ends up making a profit A company makes a product of durable material that will last a long timearrow_forwardGiven the following conditional value table, determine the appropriate decision assuming that each state of nature has an equal likelihood of occurring: States of Nature Alternatives Large plant Very Favorable Market $275,000 Average Market $100,000 Unfavorable Market - $150,000 Small plant Overtime Do nothing $200,000 $60,000 -$10,000 $100,000 $40,000 -$1,000 $0 $0 $0 The appropriate decision is to which has an EMV = $ (round your response to the nearest whole number).arrow_forwardHow would you go about attempting to come upwith the probability of a “super-event” or the probability of a“unique-event?” What factors would you consider?arrow_forward
- A recently concluded Kaggle competition had a prize of $60,000 and was about predicting customer satisfaction: Santander Customer Satisfaction Links to an external site.. Download the training and test sets from the Kaggle site and train and validate a decision tree classification model from the Scikit-learn machine learning library. The training and test sets are also provided here - "Santander Customer Satisfaction- TRAIN.csv Download Santander Customer Satisfaction - TRAIN.csv" and "Santander Customer Satisfaction- TEST-Without TARGET.csv"arrow_forwardTraditional face-to-face teaching still plays a critical role in teaching and learning; however, challenges such as COVID-19 has necessitated the introduction of Learning Management Systems (LMS) in higher educational institutions at a large scale. An LMS is a software system designed to aid teaching and learning which operates in the World Wide Web, hence, having the flexibility of anytime access (Ho, Higson, Dey & Xu, 2009). Riversdale College has invested in a Learning Management system to create, share and manage the delivery of educational content. The LMS goal is in enhancing teaching and learning. The main aim of Riversdale College is to provide excellent educational opportunities that are responsive to the needs of a demographically diverse student population and equip them to exceed challenges as active participants in shaping the future of our world. Riversdale College uses the LMS in more innovative ways like student engagement, creating and editing content,…arrow_forwardAn entrepreneur has embarked on a project to use human hair in place of animal furs in a clothing line. The human hair is to be woven into cotton fabrics, to make a hybrid fabric, that can be used as a thermal insulating fabric (i.e., it keeps persons warm). To increase the probability of sales the hybrid fabric must be dyed in various colors. Provide advice to the entrepreneur on what approaches should/could be taken to dye the new hybrid fabric. In your advice discuss the requirements of the dyes to be used, why hair dyes would not be a good option and how the dye(s) you suggest would work in the application based on the structure/properties of the fabric.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you