OPERATION MANAGEMENT
2nd Edition
ISBN: 9781260242423
Author: CACHON
Publisher: MCG
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Chapter 5, Problem 11CQ
Summary Introduction
To identify: The highest possible yield a process can obtain.
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A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and the parameters of each process are as follows:
Process 1
Process 2
35 parts/ hour
4 hours/ day
15 parts/hour
7 hours/day
20%
9%
Production rate
Daily production time
Percent of parts rejeted based on visual inspection
Assume that the daily demand for hubs allows all defect-free hubs to be sold. Additionally, tested or rejected hubs cannot be sold.
Find the process that maximizes profit per day if each part is made from Php 200 worth of material and can be sold for Php 1,500. Both processes are fully automated, and variable
overhead cost is charged at the rate of Php 2,000 per hour.
Wellplace Insurance Company processes insurance policy applications in batches of 25. One day, they had fifteen batches to
process and, after inspection, it was found that four batches had nonconforming policies. One batch had one nonconformance,
another had five, another had two, and another had six nonconformance.
a. What was the proportion nonconforming for each batch? Round your answers to two decimal places.
The proportion nonconforming for the first batch:
The proportion nonconforming for the second batch:
The proportion nonconforming for the third batch:
The proportion nonconforming for the fourth batch:
b. What was the nonconformance per unit (NPU) in total for the fifteen batches? Round your answer to three decimal places.
Total nonconformances per unit for all batches:
No chatgpt used i will give 5 upvotes typing please
Chapter 5 Solutions
OPERATION MANAGEMENT
Ch. 5 - Prob. 1CQCh. 5 - Prob. 2CQCh. 5 - Prob. 3CQCh. 5 - Prob. 4CQCh. 5 - Prob. 5CQCh. 5 - Prob. 6CQCh. 5 - Prob. 7CQCh. 5 - Prob. 8CQCh. 5 - Prob. 9CQCh. 5 - Prob. 10CQ
Ch. 5 - Prob. 11CQCh. 5 - Prob. 12CQCh. 5 - Prob. 13CQCh. 5 - Prob. 14CQCh. 5 - Prob. 15CQCh. 5 - Prob. 16CQCh. 5 - Prob. 1PACh. 5 - Prob. 2PACh. 5 - Prob. 3PACh. 5 - Prob. 4PACh. 5 - Prob. 5PACh. 5 - Prob. 6PACh. 5 - Prob. 7PACh. 5 - Prob. 8PACh. 5 - Prob. 9PACh. 5 - The help desk at Triple Stacked handles calls from...Ch. 5 - Prob. 11PACh. 5 - A pharmaceutical company creates a compound with a...Ch. 5 - Prob. 13PACh. 5 - Prob. 14PACh. 5 - Prob. 15PACh. 5 - Prob. 16PA
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- Wellplace Insurance Company processes insurance policy applications in batches of 25. One day, they had fifteen batches to process and, after inspection, it was found that four batches had nonconforming policies. One batch had four nonconformances, another had eight, another had one, and another had five nonconformance. a. What was the proportion nonconforming for each batch? Round your answers to two decimal places. The proportion nonconforming for the first batch: The proportion nonconforming for the second batch: The proportion nonconforming for the third batch: The proportion nonconforming for the fourth batch: b. What was the nonconformance per unit (NPU) in total for the fifteen batches? Round your answer to three decimal places. Total nonconformances per unit for all batches:arrow_forwardWellplace Insurance Company processes insurance policy applications in batches of 100. One day, they had eleven batches to process and, after inspection, it was found that four batches had nonconforming policies. One batch had seven nonconformances, another had two, another had one, and another had five nonconformance. a. What was the proportion nonconforming for each batch? Round your answers to two decimal places. The proportion nonconforming for the first batch: The proportion nonconforming for the second batch: The proportion nonconforming for the third batch: The proportion nonconforming for the fourth batch: b. What was the nonconformance per unit (NPU) in total for the eleven batches? Round your answer to three decimal places. Total nonconformances per unit for all batches:arrow_forwardA loan processing operation at a local bank processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day. What is the utilization of the processing operation? Select one: a. 100.0% b. 87.5% c. 70.0% d. 80.0% Warranty expense, the cost that a business incurs for the repair or replacement of goods that has sold, is an example of which of the following? Select one: a. Internal failure cost b. Appraisal cost c. Prevention cost d. External failure costarrow_forward
- 1. The crossover point between two processes A and B can be stated as - [ ] a. variable costs of process A = Variable costs of process B - [ ] B. Fixed costs of process A = Fixed costs of process B - [ ] Variable costs of process A = Fixed costs of process B - [ ] total costs of process A = total costs of Process Barrow_forwardThis is the amount that is added to the value of the firm in order to gain control itarrow_forwardWellplace Insurance Company processes insurance policy applications in batches of 50. One day, they had ten batches to process and, after inspection, it was found that four batches had nonconforming policies. One batch had three nonconformances, another had five, another had two, and another had one nonconformance. a. What were the proportion nonconforming for each batch? b. What were the nonconformances per unit (NPU) in total for the ten batches?arrow_forward
- A company that operated 10 hours a day manufactures two products on three sequential processes. The following table summarizes the data for the problem: Which of the following is the most appropriate representation for variables x and y for the given situation? a.) x is the # of units of Product 1 to be procured; y is the # of units of Product 2 to be procured. b.) x is the # of units of Product 1 to be produced; y is the # of units of Product 2 to be produced. c.) x is the # of units of Product 1 to be stored; y is the # of units of Product 2 to be stored d.) x is the # of units of Product 1 to be delivered; y is the # of units of Product 2 to be delivered.arrow_forwardHeizer and Render advises that when analyzing and designing processes to transform resources into goods, the followingquestions should be asked:- Is the process designed to achieve competitive advantage in terms of differentiation, response or low cost?- Does the process eliminate steps that do not add value?- Does the process maximize customer value as perceived by the customer?- Will the process win orders?A Time-Function Map is similar to a flow process chart, but with time added to the horizontal axis. With time-function mapping,notes indicate the activities and arrows indicate the flow direction, with time on the horizontal axis. 1. Choose a process within your organization and construct a Baseline Time-Function Maparrow_forwardHeizer and Render advises that when analyzing and designing processes to transform resources into goods, the followingquestions should be asked:- Is the process designed to achieve competitive advantage in terms of differentiation, response or low cost?- Does the process eliminate steps that do not add value?- Does the process maximize customer value as perceived by the customer?- Will the process win orders?A Time-Function Map is similar to a flow process chart, but with time added to the horizontal axis. With time-function mapping,notes indicate the activities and arrows indicate the flow direction, with time on the horizontal axis.arrow_forward
- Need this.arrow_forward44arrow_forwardTutorial-Module 1.pdf 1. Learning Material Mode X DF Course Work CHEM3010 CO 1. Learning Mate C:/Users/hp/Downloads/Tutorial-Module%201.pdf E (D Page view A Read aloud V Draw - Highlight 1 What are the major steps in building a model of a process system? 2 What key issues might arise for each of the overall modeling steps? 3 What major areas of PSE often rely on the use of models? What are some of the outcomes in the use of those models? 4 How can models be classified into generic types? Are these categories mutually exclusive? If not, then explain why. 5 Explain the fundamental differences between stochastic, empirical and mechanistic models. What are some of the factors which make it easier or harder to develop such models?arrow_forward
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