Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 1, Problem 4CQ
Summary Introduction
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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- In which company randstad is more present as a temporary work service in the automotive sector in Germany ? In which company Adecco is more present as a temporary work service in the automotive sector in Germany ? In which company Manpower is more present as a temporary work service in the automotive sector in Germany ?arrow_forwardIdentify the front office and back office services for the following organizations. Could these services be improved by increasing or decreasing the degree of customer contact? By separating low- and high-contact services?a. Hospitalb. Trucking firmc. Grocery stored. Appliance repair firmarrow_forwardBecause significant increases in operational efficiency can decrease costs, it is likely to be a source of a sustainable competitive advantage. True Falsearrow_forward
- full explanation please do.arrow_forwardSuppose that you hear two people arguing about energy. One says that we are running out of energy. The other counters that we are running out of cheap energy. Explain which person is correct and why.arrow_forwardA company produces a gear that is commonly used by several lawnmower manufacturing companies. The base cost of operation (rent, utilities, etc.) is $850,000 per year. The cost of manufacturing is $1.50 per gear. If these gears are sold at $6.75, how many must be sold each weeks to break even?arrow_forward
- The efficient frontier is given by the cheapest company in the industry.True or false?arrow_forwardWhen an operation improves its efficiency, its revenue will always stay constant, whileits costs will go down. True or false?a. Trueb. Falsearrow_forwardHelp fill in the tables with an explanation of how the fields were achieved. I need to explain the answers. Some fields are already given in the tables. You have an upstream Picking department that feeds two downstream Packing departments: Pack Singles and Pack Multis. Those Packing departments feed to a Shipping department that loads the outgoing trucks. 30% of your Pick volume goes to Pack Singles and has a packing rate of 171 units per labor hour (uph). 70% of the Pick volume goes to Pack Multis and has a pack rate of 266 units per labor hour. Your pickers pick both Single and Multi items throughout the day at an overall average rate of 114 units per labor hour. All units that are packed in both processes go through the Ship process at a rate of 570 units per hour. You have 102 people today for all 4 departments and you absolutely must pack 47,880 units in Pack Multis Items to meet a customer promise metric. How do you allocate labor to balance the flow in your department if you…arrow_forward
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