The efficiency of a factory is 75% and its utilization 50%. If effective capacity is 1000 find design capacity.
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The efficiency of a factory is 75% and its utilization 50%. If effective capacity is 1000 find design capacity.
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- If a plant has an effective capacity of 6,400 and an efficiency of 88%, then its actual (planned) output =______units (enter your response as a whole number).A biotech firm is considering abandoning its old plant, built 23 years ago, andconstructing a new facility that has 50% more square footage. The original cost of the old facility was $300,000, and its capacity in terms of standardizedproduction units is 250,000 units per year. The capacity of the new laboratoryis to be 400,000 units per year. During the past 23 years, costs of laboratoryconstruction have risen by an average of 5% per year. If the cost-capacity factor, based on square footage, is 0.80, what is the estimated cost of the newlaboratory?Katrina Design has decided to experiment with two alternative manufacturing approaches, identified as MF and LI, for producing men’s fashions. The firm expects the total demand to be 20,000 suits. Management estimates the required input resources using the different manufacturing approaches are: Direct Materials(yards) Direct Labor(hours) MF 240,000 100,000 LI 180,000 120,000 The cost of direct materials is $10 per yard; the cost of direct labor is $26 per hour. Required: 1. Compute the partial operational productivity ratios for each of the production approaches. 2. Calculate the partial financial productivity ratios for each of the production approaches. 3. Compute the total productivity ratios for each of the production approaches. (For all requirements, round your answers to 4 decimal places.)
- A small firm intends to increase the capacity of a bottleneck operation by adding a new machine.Two alternatives, A and B, have been identified, and the associated costs and revenues have beenestimated. Annual fixed costs would be $40,000 for A and $30,000 for B; variable costs per unitwould be $10 for A and $11 for B; and revenue per unit would be $15.c. If expected annual demand is 12,000 units, which alternative would yield the higher profit?A process currently services an average of 50 customers per day. Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. If demand is expected to be 75 percent of the current level in five years and management wants to have acapacity cushion of just 5 percent, what capacity requirement should be planned?Suppose that Baldwin will increase its automation to 6.5 this year. Each new unit of automation costs $4 per unit of capacity. An additional $4 per point of automation applies to any new capacity. How much will this investment in automation cost?$24,500,000$28,000,000$56,000,000$49,000,000
- A small firm intends to increase the capacity of a bottleneck operation by adding a new machine.Two alternatives, A and B, have been identified, and the associated costs and revenues have beenestimated. Annual fixed costs would be $40,000 for A and $30,000 for B; variable costs per unitwould be $10 for A and $11 for B; and revenue per unit would be $15.b. At what volume of output would the two alternatives yield the same profit?You are the operations manager for Louisiana Oysters, Inc. The company has designed new "Oyster shucking" knife that is expected to reduce risk of injury to the user. Your firm plans to begin production of these knives soon. Either of two machines, A or B could be used for in-house production. Machine A would have a fixed cost of $6000 and a variable cost of $5 per knife produced, and machine B would have a fixed cost of $9600 but a variable cost of $3 per knife. Each knife is expected to sell for $15. Determine the Range of annual “Volume of Business“[Q], for which each of the two alternative machines would be optimal i.e. best. Hint: Compute various break-even points for your evaluationA process currently services an average of 61 customers perday. Observations in recent weeks show that its utilizationis about 90 percent, allowing for just a 10 percent capacitycushion. If demand is expected to be 80 percent of the cur-rent level in five years and management wants to have acapacity cushion of just 4 percent, what capacity requirementshould be planned?
- Dirac Manufacturers Co. plans to introduce a new type of shirt based on the following information: the selling price is $ 57, the variable cost per unit is $ 18, the fixed costs are $ 7800 and the capacity per period is 500 units. a)Calculate the break-even point in units. Round to the nearest one. b)Calculate the break-even point to the nearest dollar. c)Calculate the break-even point as a percentage of capacity. Round to the nearest one.A process currently services an average of 50 customers perday. Observations in recent weeks show that its utilizationis about 90 percent, allowing for just a 10 percent capac-ity cushion. If demand is expected to be 75 percent of thecurrent level in five years and management wants to have acapacity cushion of just 5 percent, what capacity requirementshould be planned?A manager is trying to decide whether to purchase a certain part or to have it produced internally.Internal production could use either of two processes. One would entail a variable cost of $17 perunit and an annual fixed cost of $200,000; the other would entail a variable cost of $14 per unitand an annual fixed cost of $240,000. Three vendors are willing to provide the part. Vendor A hasa price of $20 per unit for any volume up to 30,000 units. Vendor B has a price of $22 per unit for demand of 1,000 units or less, and $18 per unit for larger quantities. Vendor C offers a price of$21 per unit for the first 1,000 units, and $19 per unit for additional units.a. If the manager anticipates an annual volume of 10,000 units, which alternative would be bestfrom a cost standpoint? For 20,000 units, which alternative would be best?
