Instruction: Round your answer to three decimal places. What is the capacity of the shop (in units per units per minute)?
Instruction: Round your answer to three decimal places. What is the capacity of the shop (in units per units per minute)?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Breakeven Analysis
Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.
Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
Question
Transcribed Image Text:A cell-phone repair shop consists of three processes. Step 1 requires 4 minutes per unit, step 2 requires 6 minutes per unit and step 3
requires 2 minutes per unit. 40% of units that complete the third step require rework, which means those units must start the process
over at step 2 (processing times are the same for units being reworked) and rework is always successful. Demand at the shop is 0.8
units per minute.
Instruction: Round your answer to three decimal places.
What is the capacity of the shop (in units per units per minute)?
units per minute
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