Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (11th Edition)
11th Edition
ISBN: 9780134111056
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 10, Problem 7P
Summary Introduction
Interpretation:Number of weeks required for temporary hire.
Concept Introduction:
Break-even point is the situation at which a firm earns no profit no loss. It is a situation when total revenue is equal to total cost.
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A manager faces peak (weekly) demand for one of her op-erations, but is not sure how long the peak will last. She caneither use overtime from the current workforce, or hire/lay off and just pay regular-time wages. Regular-time pay is$500 per week, overtime is $750 per week, the hiring cost is$2,000, and the layoff cost is $3,000. Assuming that peopleare available seeking such a short-term arrangement, howmany weeks must the surge in demand last to justify a tem-porary hire? Hint: Use break-even analysis (see SupplementA, “Decision Making”). Let w be the number of weeks ofthe high demand (rather than using Q for the break-evenquantity). What is the fixed cost for the regular-time option?Overtime option?
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A company offers ID theft protection using leads obtained from client banks. Three employeeswork 40 hours a week on the leads, at a pay rate of $25 per hour per employee. Each employeeidentifies an average of 3,000 potential leads a week from a list of 5,000. An average of 4 percentactually sign up for the service, paying a one-time fee of $70. Material costs are $1,000 per week,and overhead costs are $9,000 per week. Calculate the multifactor productivity for this operation infees generated per dollar of input.
Chapter 10 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (11th Edition)
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