Operations Management
Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 1, Problem 4CQ
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To determine: Whether the given statement is true or false.

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There are two competing alternatives in your textile business. A-type Tufting Machine costs $10,000 and B-Type Tufting Machine costs $10,000. A-type Tufting Machine can result in $7.000 labour savings in the first two years and $10.000 in year three. B-type Tufting Machine can result in $11.000 labour savings in the first two years. Assume MARR=20%. and find the difference between the net present worth of these two alternatives using infinite planning horizon with project repeatability. a) Between $6.480 and $6,700 O b) Between $5.480 and $5,700 O c) Between $2.480 and $2,700 d) None of the answers are correct O e) Between $4.480 and $4,700 f) Between $3,480 and $3.700
Some people tend to use the terms effectiveness and efficiency interchangeably, though we’ve seen they are different concepts. But is there any relationship at all between them? Can a firm be effective but inefficient? very efficient but essentially ineffective? Both? Neither?
An 8-hour shift at maximum production yields 8,000 units at your factory. Increasing sales and marketing will necessitate more manufacturing capacity because of increasing consumer demand. There is a lot depending on your decision as the plant manager about you doing overtime or adding an additional 8-hour shift. How many more goods of demand, above the 8,000 current productions, are required to make the 2nd shift cost worth it? Answer the following questions based on the information presented: A)There should always be 100 employees working in the factory. B)You pay each of your employees an hourly wage of $20. C)There is a 150 percent increase in overtime compensation. Please answer in detail and round your answer to the next solid number.
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