Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab Operations Management
Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab Operations Management
12th Edition
ISBN: 9780134890357
Author: Lee J. Krajewski, Manoj K. Malhotra
Publisher: Pearson Global Edition
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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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Please provide me the brief analysis of this - Sheri has been employed as a limo driver in the past but is currently working as a Lyft and DoorDash driver. In discussion with Keon, she grew excited and mentioned she would love to work with him. Since one of the current drivers is retiring, Keon believes he can hire her on a part-time basis for $20,000 a year. Based on current numbers (with no driver on salary), this would be a 8% reduction in operating cost for one limo. However, Keon wants more advice on hiring Sheri on salary versus paying her hourly. Sheri is also quite talented with marketing and using social media. Keon believes she can have the same impact as spending $1,000 a month for advertising. Keon is wondering if he should offer her a business partnership deal. He would give her 40% of the business if she invested $30,000 and worked full-time as a driver/marketer. Keon wants a detailed analysis on this business partnership idea, including general pros and cons of running a…

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Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab Operations Management

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