Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 14, Problem 6P
Determine the number of cycles per day and a production quantity per cycle for this set of products that achieves fairly level production:
Assume the production sequence will be F-G-H-K.
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Suppose a final assembly is produced by assembling two components. THE The first component, A, is produced internally and goes through three process steps, which are stamping, forging and machining, with scrap estimates of 10%, 15% and 25%, respectively. For every three produced units of component A, two are used in the final assembly and one is separate to meet spare parts needs. The second component, B, which is used exclusively in final assembly, is purchased from a supplier external and inspected on arrival; 2% do not pass inspection. A unit of the component purchased is required for each final assembly. The final assembly process produces 5% of scraps. Spare parts demands for component A and final Su assembly match to 1,000 and 5,000 units, respectively. How many input units are needed for produce component A, and how many units of component B should the firm buy?
The Chineke Group of Company manufactures two products, namely product B and product P, and provides you with the following information:
Prod. B
Prod. P
Selling price per unit
80.00
50.00
Less cost of sales:
Direct material A @ R5.00 per kg
15.00
10.00
Direct material B @ R4.00 per kg
8.00
12.00
Direct labour @ R6.00 per hour
12.00
6.00
Variable manufacturing overhead @ R5.00 per labour hour
10.00
5.00
Fixed manufacturing overhead per unit
5.00
5.00
Gross profit
30.00
12.00
Less sales & administrative costs:
Variable
6.00
4.00
Fixed
10.00
5.00
Net profit per unit
14.00
3.00
Take note of the following constraints:
Material A available 360 kg
Material B available 360 kg
Labour hours available…
A Company belonging to the process industry carries out three consecutive processes. The output of
the first Process is taken as input of the second process, and the output of the second process is taken
as input of the Third process. The final product emerges out of the third process. It is also possible to
outsource the intermediate Products. It has been found that over a period of time cost of production
of the first process is 10% higher than The market price of the intermediate product, available freely in
the market. The company has decided to close
Down the first process as a measure of cost saving (vertical spin off) and outsource. Should this event
be treated
As discontinuing operation?
Chapter 14 Solutions
Operations Management
Ch. 14.S - Prob. 1DRQCh. 14.S - Prob. 2DRQCh. 14.S - Prob. 3DRQCh. 14.S - Prob. 4DRQCh. 14.S - Prob. 5DRQCh. 14.S - Prob. 6DRQCh. 14.S - Prob. 7DRQCh. 14.S - Prob. 8DRQCh. 14.S - Prob. 9DRQCh. 14.S - Prob. 10DRQ
Ch. 14.S - The probability that equipment used in a hospital...Ch. 14.S - The frequency of breakdown of a machine that...Ch. 14.S - Prob. 3PCh. 14 - Prob. 1DRQCh. 14 - Prob. 2DRQCh. 14 - Prob. 3DRQCh. 14 - Prob. 4DRQCh. 14 - Prob. 5DRQCh. 14 - Prob. 6DRQCh. 14 - Prob. 7DRQCh. 14 - Contrast push and pull methods ofmovi.ttg goods...Ch. 14 - Prob. 9DRQCh. 14 - Prob. 10DRQCh. 14 - Prob. 1TSCh. 14 - Prob. 2TSCh. 14 - Prob. 3TSCh. 14 - Prob. 1CTECh. 14 - Prob. 2CTECh. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3PCh. 14 - Determine the number of cycles per day and the...Ch. 14 - Given this set of daily service operations, and...Ch. 14 - Determine the number of cycles per day and a...Ch. 14 - Compute the takt time for a system where the total...Ch. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - What might Stephanie determine as the best...
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