Operations Management
Operations Management
13th Edition
ISBN: 9780135173626
Author: HEIZER, Jay, RENDER, Barry, Munson, Chuck
Publisher: Pearson,
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Chapter 1, Problem 9P

Brown’s, a local bakery, is worried about increased costs—particularly energy. Last year’s records can provide a fairly good estimate of the parameters for this year. Wende Brown, the owner, does not believe things have changed much, but she did invest an additional $3,000 for modifications to the bakery’s ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the bakery’s productivity to see if the modifications were beneficial. You have the following data to work with:

  LAST YEAR NOW
Production (dozen) 1,500 1,500
Labor (hours) 350 325
Capital investment ($) 15,000 18,000
Energy (BTU) 3,000 2,750

Chapter 1, Problem 9P, Browns, a local bakery, is worried about increased costsparticularly energy. Last years records can

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​Brown's, a local​ bakery, is worried about increased costs particularly energy. Last​ year's records can provide a fairly good estimate of the parameters for this year. Wende​ Brown, the​ owner, does not believe things have changed​ much, but she did invest an additional ​$2,500 for modifications to the​ bakery's ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 20​%  more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the​ bakery's productivity to see if the modifications were beneficial. You have the following data to work​ with:                                                                                                 Last Year Now Production​ (dozen) 1,600 1,600 Labor​ (hours) 350 320 Capital Investment​ ($) 15,000 17,500 Energy​ (BTU) 3,200 2,800 Energy productivity increase​ = ​(enter your response as a…
Brown's, a local​ bakery, is worried about increased costs particularly energy. Last​ year's records can provide a fairly good estimate of the parameters for this year. Wende​ Brown, the​ owner, does not believe things have changed​ much, but she did invest an additional ​$2,500 for modifications to the​ bakery's ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15​% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the​ bakery's productivity to see if the modifications were beneficial. You have the following data to work​ with:   Last Year Now Production (dozen) 1,600 1,600 Labor (hours) 340 320 Capital Investment ($) 15,000 17,500 Energy (BTU) 3,000 2,800 Energy productivity increase​ =____ (enter your response as a percentage rounded to two decimal places and include a minus sign if​ necessary). Capital productivity increase​ =  ____​(enter your…
Brown's, a local bakery, is worried about increased costs particularly energy. Last year's records can provide a fairly good estimate of the parameters for this year. Wende Brown, the owner, does not believe things have changed much, but she did invest an additional $2,500 for modifications to the bakery's ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the bakery's productivity to see if the modifications were beneficial. You have the following data to work with: Last Year 1,500 350 15,000 3,000 Production (dozen) Labor (hours) Capital Investment ($) Energy (BTU) Energy productivity increase = 9.1 % (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary). 14.30 % (enter your response as a percentage rounded to two decimal places and include a minus sign if…
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