Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
12th Edition
ISBN: 9781259580093
Author: William J Stevenson
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 5, Problem 9P
A company manufactures a product using two machine cells. Each cell has a design capacity of 250 units per day and effective capacity of 230 units per day. At present, actual output averages 200 units per cell, but the manager estimates that productivity improvements soon will increase output to 225 units per day. Annual demand is currently 50,000 units. It is
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A company manufactures a product using machine cells. Each cell has a design capacity of 250 units per day and an effective capacity
of 230 units per day. At present, actual output averages 200 units per cell, but the manager estimates that productivity improvements
soon will increase output to 224 units per day. Annual demand is currently 60,000 units. It is forecasted that within two years, annual
demand will triple. How many cells will the company require to satisfy predicted demand under these conditions? Assume 242
workdays per year. (Round up your answer to the next whole number.)
Answer is complete but not entirely correct.
3
Cells
A company manufactures a product using two machine cells. Each cell has a design capacity of 250 units per day and an effective capacity of 230 units per day. At present, actual output averages 200 units per cell, but the manager estimates that productivity improvements soon will increase output to 225 units per day. Annual demand is currently 50,000 units. It is forecasted that within two years, annual demand will triple. How many cells should the company plan to produce to satisfy predicted demand under these conditions? Assume 240 workdays per year.
Spartan Castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur $350,000 of fixed cost and add $50 of variable cost to each casting Spartan produces. The second process has fixed costs of $150,000 and adds $90 of variable cost per casting.a. What is the break-even quantity beyond which the first process is more attractive?b. What is the difference in total cost if the quantity produced is 10,000?
Chapter 5 Solutions
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
Ch. 5.8 - Explain the meaning of the phrase Hours versus...Ch. 5.8 - Prob. 1.2RQCh. 5.8 - Prob. 1.3RQCh. 5.8 - Prob. 1.4RQCh. 5.8 - Prob. 1.5RQCh. 5.S - Prob. 1DRQCh. 5.S - Prob. 2DRQCh. 5.S - Explain the term bounded rationality.Ch. 5.S - Prob. 4DRQCh. 5.S - Prob. 5DRQ
Ch. 5.S - What information is contained in a payoff table?Ch. 5.S - Prob. 7DRQCh. 5.S - Prob. 8DRQCh. 5.S - Under what circumstances is expected monetary...Ch. 5.S - Explain or define each of these terms: a. Laplace...Ch. 5.S - Prob. 11DRQCh. 5.S - Prob. 12DRQCh. 5.S - Prob. 13DRQCh. 5.S - Prob. 1PCh. 5.S - Refer to problem1. Suppose after a certain amount...Ch. 5.S - Refer to Problems 1 and 2 Construct a graph that...Ch. 5.S - Prob. 4PCh. 5.S - Prob. 5PCh. 5.S - The lease of Theme Park, Inc., is about to expire....Ch. 5.S - Prob. 7PCh. 5.S - Prob. 8PCh. 5.S - Prob. 9PCh. 5.S - A manager must decide how many machines of a...Ch. 5.S - Prob. 11PCh. 5.S - Prob. 12PCh. 5.S - Prob. 13PCh. 5.S - Prob. 14PCh. 5.S - Give this payoff table: a. Determine the range of...Ch. 5.S - Prob. 16PCh. 5.S - Repeat all parts of problem 16, assuming the value...Ch. 5.S - Prob. 18PCh. 5 - Prob. 1DRQCh. 5 - Prob. 2DRQCh. 5 - How do long-term and short-term capacity...Ch. 5 - Give an example of a good and a service that...Ch. 5 - Give some example of building flexibility into...Ch. 5 - Why is it important to adopt a big-picture...Ch. 5 - What is meant by capacity in chunks, and why is...Ch. 5 - Prob. 8DRQCh. 5 - How can a systems approach to capacity planning be...Ch. 5 - Prob. 10DRQCh. 5 - Why is it important to match process capabilities...Ch. 5 - Briefly discuss how uncertainty affects capacity...Ch. 5 - Prob. 13DRQCh. 5 - Prob. 14DRQCh. 5 - Prob. 15DRQCh. 5 - Prob. 16DRQCh. 5 - What is the benefit to a business organization of...Ch. 5 - Prob. 1TSCh. 5 - Prob. 2TSCh. 5 - Prob. 3TSCh. 5 - Prob. 1CTECh. 5 - Prob. 2CTECh. 5 - Identify four potential unethical actions or...Ch. 5 - Any increase in efficiency also increases...Ch. 5 - Prob. 1PCh. 5 - In a job shop, effective capacity is only 50...Ch. 5 - A producer of pottery is considering the addition...Ch. 5 - A small firm intends to increase the capacity of a...Ch. 5 - A producer of felt-tip pens has received a...Ch. 5 - A real estate agent is considering changing her...Ch. 5 - A firm plans to begin production of a new small...Ch. 5 - A manager is trying to decide whether to purchase...Ch. 5 - A company manufactures a product using two machine...Ch. 5 - A company must decide which type of machine to...Ch. 5 - Prob. 11PCh. 5 - A manager must decide how many machines of a...Ch. 5 - Prob. 13PCh. 5 - The following diagram shows a four-step process...Ch. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - A new machine will cost 18,000, butt result it...Ch. 5 - Remodelling an office will cost 25,000 and will...Ch. 5 - Prob. 1CQCh. 5 - Prob. 2CQCh. 5 - Prob. 3CQ
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- The measure of production that considers historical and estimated future production levels and cyclical fluctuations is referred to as: Group of answer choices expected capacity normal capacity theoretical capacity practical capacityarrow_forwardKilmer Company's customer demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units: Actual run time this week Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) 1-a. Utilization rate 1-b. Efficiency rate. 1-c. Quality rate 1-d. Overall equipment effectiveness 2-a. Utilization loss in units 2-b. Efficiency loss in units 2-c. Quality loss in units 23,310 minutes 25,900 minutes 0.90 8.00 units per minute 10 units per minute Required: 1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: Note: Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number. 149,184 units 186,480 unitsarrow_forwardJefferson Company’s demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units. Actual run time this week 6,106 minutes Machine time available per week 8,600 minutes Actual run rate this week 4.32 units per minute Ideal run rate 6.00 units per minute Defect-free output this week 11,315 units Total output this week (including defects) 15,500 units 1. Compute the utilization rate.2. Compute the efficiency rate. 3. Compute the quality rate. 4. Compute the overall equipment effectiveness (OEE).arrow_forward
- Majestic Corporation provides call-center ordering services for Essential Oils magazine. Majestic receives an annual fee of $200,000 for providing such services and is also eligible to receive a performance bonus up to $65,000 if the average customer wait times are below certain thresholds at the end of the year. Using historical results as well as current expectations, Majestic estimates the chances of achieving the different performance bonuses as shown in the table here. Assume there are NO revenue constraints, and the entity uses the expected value approach to record variable consideration when recognizing revenue during the period. Which is the amount of the performance bonus management can recognize in the transaction price? Average wait times Performance Bonus % Chance of Achieving $65,000 15% < 1 minute < 2 minutes < 3 minutes < 4 minutes < 5 minutes $45,000 $25,000 $5,000 0 10% 50% 20% 5% a. Management would include the variable consideration in the transaction price in the…arrow_forwardThe bus of company A has planned their capacity in terms of ‘bus-days’. Forecasts show expected annual demands for the next year to average 400,000 full-day passengers and 840,000 half-day passengers. The company has 61 buses, each with an effective capacity of 40 passengers a day for 300 days a year. Breakdowns and other unexpected problems reduce efficiency to 90%. They employ 86 drivers who work an average of 220 days a year, but illness and other absences reduce their efficiency to 85%. If there is a shortage of buses the company can buy extra ones for $110,000 or hire them for $100 a day. If there is a shortage of drivers they can recruit extra ones at a cost of $20,000 a year, or hire them from an agency for $110 a day. How can the company approach its tactical planning? Please recommend company A the best plan and explain in detail the reasons for the selectionarrow_forwardCharles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 5555% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,800 loaves per month. Employees are paid $8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $800 and a per loaf ingredient cost of $0.35 Current multifactor productivity for 640 work hours per month =0.27loaves/dollar (round your response to three decimal places).arrow_forward
- Kilmer Company's customer demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units: Actual run tine this week Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) 1-a. Utilization rate 1-b. Efficiency rate. 1-c. Quality rate 1-d. Overall equipment effectiveness 2-a. Utilization loss in units 12,800 minutes 16,000 minutes. 2-b. Efficiency loss in units 2-c. Quality loss in units 6.30 units per minute. 9 units per minute. Required: 1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: Note: Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number. 72,576 units 80,640 unitsarrow_forwardAn airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, the average number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to the flight segment. If demand is expected to increase to 91 customers for this flight segment in three years, what capacity requirement should be planned? Assume that management deems that a capacity cushion of 35 percent is appropriate. The needed capacity requirement is customers per day. (Enter your response rounded up to the next whole number.)arrow_forwardThe staff training centre at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 2100 employees per year. Since the training centre was first put in use, the program has become more complex, so that 1500 now represents the most employees that can be trained per year. In the past year, 1350 employees were trained. a) Calculate the efficiency and the utilization of this system. b) If the number of employees who signed up for training next year is 1475, what is the efficiency and utilization rate for next year?arrow_forward
- In 2020, Bayer Hospital admitted 15,152 patients. In 2021, a 32% increase in admissions is expected. Currently the hospital has 375 beds and the average patient stays in the hospital 7 days. Assume the hospital operates 365 days a year (assume one patient per bed). a) How many beds were empty, on average, in 2020? b) On average, how many beds do you expect to be empty in 2021?arrow_forwardA company is planning to manufacture snowboards. The fixed costs are $128 per day and the total costs are $6,213 per daily output of 16 boards. What is the average costs per board tend to as production increases?arrow_forwardA computer repair service has a design capacity of 80 repairs per day. Its effective capacity, however, is 64 repairs per day, and its actual output is 62 repairs per day. The manager would like to increase the number of repairs per day. Which of the following factors would you recommend that the manager investigate: quality problems, absenteeism, or scheduling and balancing? Explain your reasoning.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY