The capacity problems experienced when a new drug is introduced to a market. Capacity management: Capacity is the ability of an organization to hold, receive, and accommodate. In business terms, it can be termed as the output capable of being achieved over a period of time. It is vital that a firm has good practices to manage its capacity levels.

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Answer 1

Question

Chapter 5, Problem 1DQ

Summary Introduction

To explain: The capacity problems experienced when a new drug is introduced to a market.

Capacity management:

Capacity is the ability of an organization to hold, receive, and accommodate. In business terms, it can be termed as the output capable of being achieved over a period of time. It is vital that a firm has good practices to manage its capacity levels.

Expert Solution & Answer

Explanation of Solution

The possible capacity problems when a drug is introduced to the market are:

The uncertain demand for the new drug and the high capital investment involved in drug production makes it extremely difficult to predict adequate capacity levels.
Since the drug is new, there is no historical sales data which can be used as data to forecast the future demand.
If the forecast is too high, the significant capital resources will be underutilized.
On the other hand, if the forecast is too low, the firm might not have adequate capital resources to meet the actual demand which can result in lost sales.

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Question 1 M&H company ltd. sells television sets and has collected monthly sales data (in units) for the past 12 months as shown in table 1below: TABLE 1 Month Sales (Units) 1 120 2 135 3 150 4 165 5 180 6 200 7 195 8 210 9 225 10 240 11 255 12 270 Using the data provided, answer the following questions: a. Using a 3-month weighted moving average with weights 0.5, 0.3, and 0.2 (most recent month having the highest weight), calculate the forecast for month 13. [2 marks] b. If the company applies an exponential smoothing method with a smoothing constant (a) = 02, and assumes an initial forecast of 120 units for Month 1, calculate the forecast for month 13. [6 marks] c. Calculate the Mean Absolute Deviation (MAD) for the exponential smoothing method and weighted moving average method using the actual sales data for Months 4 to 12 and determine which method is more accurate. [8 marks] d. Compute the values of a (intercept) and b (slope) using the least squares method. [7 marks] e. Use the…

Question 4 MGM12026 Production and Operations Management semester il 2024 A company operates a manufacturing plant that produces two products, A and B. The plant has the following capacity data: . . Design Capacity: 15,000 machine hours per month Effective Capacity: 12,000 machine hours per month Actual Output (Utilized Capacity): 10,000 machine hours per month Additionally, the plant produces Product A and Product B, with the following production data: Product Demand (Units) Processing Time Contribution Margin ($ (hours per unit) per unit) A 3,000 2.5 40 B 4,000 1.5 30 a. Calculate the plant's i. Capacity Utilization [3 marks] ii. Effective Capacity Utilization [3 marks] iii. Efficiency. Interpret the results. [3 marks] b. Compute the total machine hours required to meet full demand for both products. [5 marks] c. Determine whether the plant has sufficient capacity to meet full demand. If not, calculate the shortfall in machine hours. [3 marks] d. Using the contribution margin per…

Answer 2

Question

Chapter 5, Problem 1DQ

Summary Introduction

To explain: The capacity problems experienced when a new drug is introduced to a market.

Capacity management:

Capacity is the ability of an organization to hold, receive, and accommodate. In business terms, it can be termed as the output capable of being achieved over a period of time. It is vital that a firm has good practices to manage its capacity levels.

Expert Solution & Answer

Explanation of Solution

The possible capacity problems when a drug is introduced to the market are:

The uncertain demand for the new drug and the high capital investment involved in drug production makes it extremely difficult to predict adequate capacity levels.
Since the drug is new, there is no historical sales data which can be used as data to forecast the future demand.
If the forecast is too high, the significant capital resources will be underutilized.
On the other hand, if the forecast is too low, the firm might not have adequate capital resources to meet the actual demand which can result in lost sales.

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Answer 3

Question

Chapter 5, Problem 1DQ

Summary Introduction

To explain: The capacity problems experienced when a new drug is introduced to a market.

Capacity management:

Capacity is the ability of an organization to hold, receive, and accommodate. In business terms, it can be termed as the output capable of being achieved over a period of time. It is vital that a firm has good practices to manage its capacity levels.

Expert Solution & Answer

Explanation of Solution

The possible capacity problems when a drug is introduced to the market are:

The uncertain demand for the new drug and the high capital investment involved in drug production makes it extremely difficult to predict adequate capacity levels.
Since the drug is new, there is no historical sales data which can be used as data to forecast the future demand.
If the forecast is too high, the significant capital resources will be underutilized.
On the other hand, if the forecast is too low, the firm might not have adequate capital resources to meet the actual demand which can result in lost sales.

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Answer 4

Question

Chapter 5, Problem 1DQ

Summary Introduction

To explain: The capacity problems experienced when a new drug is introduced to a market.

Capacity management:

Capacity is the ability of an organization to hold, receive, and accommodate. In business terms, it can be termed as the output capable of being achieved over a period of time. It is vital that a firm has good practices to manage its capacity levels.

Expert Solution & Answer

Explanation of Solution

The possible capacity problems when a drug is introduced to the market are:

The uncertain demand for the new drug and the high capital investment involved in drug production makes it extremely difficult to predict adequate capacity levels.
Since the drug is new, there is no historical sales data which can be used as data to forecast the future demand.
If the forecast is too high, the significant capital resources will be underutilized.
On the other hand, if the forecast is too low, the firm might not have adequate capital resources to meet the actual demand which can result in lost sales.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 5, Problem 1DQ

Summary Introduction

To explain: The capacity problems experienced when a new drug is introduced to a market.

Capacity management:

Capacity is the ability of an organization to hold, receive, and accommodate. In business terms, it can be termed as the output capable of being achieved over a period of time. It is vital that a firm has good practices to manage its capacity levels.

Expert Solution & Answer

Explanation of Solution

The possible capacity problems when a drug is introduced to the market are:

The uncertain demand for the new drug and the high capital investment involved in drug production makes it extremely difficult to predict adequate capacity levels.
Since the drug is new, there is no historical sales data which can be used as data to forecast the future demand.
If the forecast is too high, the significant capital resources will be underutilized.
On the other hand, if the forecast is too low, the firm might not have adequate capital resources to meet the actual demand which can result in lost sales.

Answer 6

Chapter 5, Problem 1DQ

Summary Introduction

To explain: The capacity problems experienced when a new drug is introduced to a market.

Capacity management:

Capacity is the ability of an organization to hold, receive, and accommodate. In business terms, it can be termed as the output capable of being achieved over a period of time. It is vital that a firm has good practices to manage its capacity levels.

Expert Solution & Answer

Explanation of Solution

The possible capacity problems when a drug is introduced to the market are:

The uncertain demand for the new drug and the high capital investment involved in drug production makes it extremely difficult to predict adequate capacity levels.
Since the drug is new, there is no historical sales data which can be used as data to forecast the future demand.
If the forecast is too high, the significant capital resources will be underutilized.
On the other hand, if the forecast is too low, the firm might not have adequate capital resources to meet the actual demand which can result in lost sales.

Answer 7

Chapter 5, Problem 1DQ

Summary Introduction

To explain: The capacity problems experienced when a new drug is introduced to a market.

Capacity management:

Capacity is the ability of an organization to hold, receive, and accommodate. In business terms, it can be termed as the output capable of being achieved over a period of time. It is vital that a firm has good practices to manage its capacity levels.

Answer 8

Expert Solution & Answer

Explanation of Solution

The possible capacity problems when a drug is introduced to the market are:

The uncertain demand for the new drug and the high capital investment involved in drug production makes it extremely difficult to predict adequate capacity levels.
Since the drug is new, there is no historical sales data which can be used as data to forecast the future demand.
If the forecast is too high, the significant capital resources will be underutilized.
On the other hand, if the forecast is too low, the firm might not have adequate capital resources to meet the actual demand which can result in lost sales.