Concept explainers
A.J.’s Wildlife Emporium manufactures two unique birdfeeders (Deluxe and Super Duper) that are manufactured and assembled in up to three different workstations
- Using the traditional method, which bases decisions solely on a product’s contribution to profits and overhead, what is the optimal product mix and what is the overall profitability?
- Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability?
Want to see the full answer?
Check out a sample textbook solutionChapter 5 Solutions
Operations Management: Processes and Supply Chains (11th Edition)
Additional Business Textbook Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Operations Management
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
Operations Management
Operations and Supply Chain Management 9th edition
Business in Action (8th Edition)
- Tuff-Rider, Inc., manufactures touring bikes and mountainbikes in a variety of frame sizes, colors, and component com-binations. Identical bicycles are produced in lots of 100. Theprojected demand, lot size, and time standards are shown inthe following table: Item Touring MountainDemand forecast 5,000 units/year 10,000 units/yearLot size 100 units 100 unitsStandard processing time .25 hour/unit .50 hour/unitStandard setup time 2 hours/lot 3 hours/lot The shop currently works 8 hours a day, 5 days a week,50 weeks a year. It operates five workstations, each producingone bicycle in the time shown in the table. The shop main-tains a 15 percent capacity cushion. How many workstationswill be required next year to meet expected demand withoutusing overtime and without decreasing the firm’s currentcapacity cushion?arrow_forwardWhat is one important advantage of a Make-To-Stock process? Group of answer choices Can respond quickly to customer demand Creates greater flexibility Less likely to have obsolete inventory More environmentally sensitivearrow_forwardThe 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…arrow_forward
- 2) BAQARAH Milk is fresh cow’s milk from Bangladesh’s first industrial hi-tech dairy farm which is equipped with the most advanced technology for milking cows and processing milk. All the cows are purebred Holstein Friesian from Australia. The farm ensures that milk is hygienically produced without human touch from milking to packing. It is instantly pasteurized to preserve the milk quality. The key features of BAQARAH milk is pure, fresh, low fat, free of antibiotic, free of toxin and of global standard. a) Which pricing strategy will be applicable for this product- price skimming or pricing penetration? Justify your position with three proper logics. b) In the given situation, which stage of buying decision process of consumers the company is trying to influence and how?arrow_forwardDoes the process optimise the desired demand of the customer?arrow_forward1. Which of the following quantities has no effect on the first period’s ATP calculation? a) Current on-hand Inventory b) Booked customer orders for the first periods c) MPS quantity for the first period d) Forecasted demand for the first period 2. Which one of the following is an MRP lot-sizing rule that attempts to minimize the amount to minimize the amount of average inventory? a) Periodic order quantity (POQ), WITH P=2 b)Fixed order quantity (FOQ) c) Economic order quantity (EOQ) d)Lot for Lot (L4L). 3. Which of the following statements about lot-sizing rules for MRP is true? a) The periodic order quantity (POQ) rule generates a higher level of average inventory since it creates inventory remnants. b) FOQ is a dynamic lot-sizing rule which reduces the amount of inventory, by doing a better job of matching the order quantity to the projected on-hand inventory quantity. c) The lot for lot rule minimizes inventory investment but maximizes the number of orders placed. d) In…arrow_forward
- ACME Company produces part X using the F-150 machine whoseinformation appears below: Determine how many machines are required to meet a requirement.production of 800,000 units per year.arrow_forwardOUTDOOR ADVENTURE: WHITE WATER AND CAMPING SUPPLIES(NETWORKED COMPUTER SYSTEM AND MANUAL PROCEDURES)Outdoor Adventure is a Montana-based wholesaler of rafting andcamping equipment that serves outdoor sports camping retailers throughout the northwest. You have been hired by Outdoor Adventure toevaluate its processes, risks, and internal controls. The followingparagraphs describe Outdoor Adventure's expenditure cycle procedures.Purchases System The process begins when the purchasing clerk checks the inventorysubsidiary ledger on his computer terminal each morning. When anitem is deemed to be too low, the clerk selects a vendor from the validvendor file and prepares a digital purchase order. The clerk prints two hard copies: one copy is sent to the vendor, and the other is filed in thedepartment. Digital purchase order record is added to the PO File.When the goods arrive in the receiving department, the receiving clerkinspects them and reconciles the items against the information in…arrow_forwardWhich of the following statements are correct about services and service design? Select ALL which are true. 1) Services can be more easily automated and transported than products. ) 2) The service delivery system should be designed primarily around the employees in the system. ) 3) Low-contact services can usually be made more efficient than high-contact services. 4) A service is produced and consumed simultaneously (at the same time).arrow_forward
- Which of the following is a fixed cost? a) Direct materials b ) Direct labor c) Rent on factory building d) Variable manufacturing overheadarrow_forwardCan you do the calculations in Excel file showing all the work? You are a planner at a small distribution warehouse. Historically, the warehouse has targeted fulfilling 10 orders per hour for planning purposes. However, as the diversity of products has expanded, as well as the size of orders, this target has proven to be unreliable, as the orders are continually behind schedule and customers are complaining about late deliveries. Your supervisor has tasked you with determining a better target so that the warehouse may provide better delivery estimates to customers for their orders. Over the past week you gathered data for the number of orders fulfilled each day. This data is shown in the following table. Day Monday Tuesday Wednesday Thursday Friday Orders 88 64 72 56 80 A. Assuming 8 hours of operations each day, what is the mean and standard deviation for orders fulfilled per hour? The following table may help with these calculations. N is the total…arrow_forwardJosie’s Sports Accessories has 12 operators who work 9 hours a day (no breaks), 7 days a week. They manufacture headbands with a standard minute value of 1.35 minutes. The workers produce 4,450 headband a day. How long will it take them to complete an order for 5,000 headbands?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,