EBK PRINCIPLES OF OPERATIONS MANAGEMENT
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175644
Author: Munson
Publisher: VST
Question
Book Icon
Chapter 5.S, Problem 12P

a)

Summary Introduction

To determine: The revenue retrieval for GF.

Introduction: The revenue is the income obtained from the sale of products and services; it can also refer to any assets or capital related with the main operations of the firm before any expenses or costs are deducted.

a)

Expert Solution
Check Mark

Answer to Problem 12P

The revenue retrieval amount for GF Deluxe is $4.53.

Explanation of Solution

Given information:

GF Deluxe:

Part Resale revenue per unit Recycling revenue per unit Processing cost per unit Disposal cost per unit
Metal frame $3.27 $4.78 $1.05 $0.85
Battery $0.00 $3.68 $6.18 $3.05
Motor housing $3.93 $2.95 $2.05 $1.25
Trimmer head $1.25 $0.75 $1.00 $0.65

PM:

Part Resale revenue per unit Recycling revenue per unit Processing cost per unit Disposal cost per unit
Metal frame $3.18 $3.95 $1.15 $0.65
Battery $0.00 $2.58 $4.98 $2.90
Motor housing $4.05 $3.45 $2.45 $1.90
Trimmer head $1.05 $0.85 $1.10 $0.75

Formula:

Revenue retrieval=[Total resale revenue+Total recycling revenueTotal processing costTotal disposal cost]

Calculate the revenue retrieval amount for GF Deluxe:

Part Resale revenue per unit Recycling revenue per unit Processing cost per unit Disposal cost per unit
Metal frame $3.27 $4.78 $1.05 $0.85
Battery $0.00 $3.68 $6.18 $3.05
Motor housing $3.93 $2.95 $2.05 $1.25
Trimmer head $1.25 $0.75 $1.00 $0.65
Total $8.45 $12.16 $10.28 $5.80
Total retrieval $4.53

Table 1

Revenue retrieval amount=$8.45+$12.16$10.28$5.80=$4.53

The revenue retrieval amount is calculated by subtracting all the costs involved from the resale revenue obtained which is $4.53.

Hence, the revenue retrieval amount for GF Deluxe is $$4.53.

b)

Summary Introduction

To determine: The revenue retrieval for PM.

b)

Expert Solution
Check Mark

Answer to Problem 12P

The revenue retrieval amount for PM is $3.23.

Explanation of Solution

Given information:

GF Deluxe:

Part Resale revenue per unit Recycling revenue per unit Processing cost per unit Disposal cost per unit
Metal frame $3.27 $4.78 $1.05 $0.85
Battery $0.00 $3.68 $6.18 $3.05
Motor housing $3.93 $2.95 $2.05 $1.25
Trimmer head $1.25 $0.75 $1.00 $0.65

PM:

Part Resale revenue per unit Recycling revenue per unit Processing cost per unit Disposal cost per unit
Metal frame $3.18 $3.95 $1.15 $0.65
Battery $0.00 $2.58 $4.98 $2.90
Motor housing $4.05 $3.45 $2.45 $1.90
Trimmer head $1.05 $0.85 $1.10 $0.75

Formula:

Revenue retrieval=[Total resale revenue+Total recycling revenueTotal processing costTotal disposal cost]

Calculate the revenue retrieval amount for PM:

Part Resale revenue per unit Recycling revenue per unit Processing cost per unit Disposal cost per unit
Metal frame $3.18 $3.95 $1.15 $0.65
Battery $0.00 $2.58 $4.98 $2.90
Motor housing $4.05 $3.45 $2.45 $1.90
Trimmer head $1.05 $0.85 $1.10 $0.75
Total $8.28 $10.83 $9.68 $6.20
Total retrieval $3.23

Table 2

Revenue retrieval amount=$8.28+$10.83$9.68$6.20=$3.23

The revenue retrieval amount is calculated by subtracting all the costs involved from the resale revenue obtained which is $3.23.

Hence, the revenue retrieval amount for PM is $3.23

c)

Summary Introduction

To determine: The better model in terms of design.

c)

Expert Solution
Check Mark

Answer to Problem 12P

The better model in terms of design is GF Deluxe.

Explanation of Solution

Given information:

GF Deluxe:

Part Resale revenue per unit Recycling revenue per unit Processing cost per unit Disposal cost per unit
Metal frame $3.27 $4.78 $1.05 $0.85
Battery $0.00 $3.68 $6.18 $3.05
Motor housing $3.93 $2.95 $2.05 $1.25
Trimmer head $1.25 $0.75 $1.00 $0.65

PM:

Part Resale revenue per unit Recycling revenue per unit Processing cost per unit Disposal cost per unit
Metal frame $3.18 $3.95 $1.15 $0.65
Battery $0.00 $2.58 $4.98 $2.90
Motor housing $4.05 $3.45 $2.45 $1.90
Trimmer head $1.05 $0.85 $1.10 $0.75

From Table 1 and 2, it can be inferred that GF Deluxe has better design alternatives in terms of revenue retrieval because it has the highest revenue retrieval.

Hence, the GF Deluxe is the better design alternative because it has a higher revenue retrieval opportunity when compared to PM.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
“Implementing a Performance Management Communication Plan at Accounting, Inc.” Evaluate Accounting Inc.’s communication plan.  Specifically, does it answer all of the questions that a good communication plan should answer? Which questions are left unanswered?  How would you provide answers to the unanswered questions? “Implementing an Appeals Process at Accounting, Inc.”   If you were to design an appeals process to handle these complaints well, what would be the appeal process?  Describe the recommended process and why.
The annual demand for water bottles at Mega Stores is 500 units, with an ordering cost of Rs. 200 per order. If the annual inventory holding cost is estimated to be 20%. of unit cost, how frequently should he replenish his stocks? Further, suppose the supplier offers him a discount on bulk ordering as given below. Can the manager reduce his costs by taking advantage of either of these discounts? Recommend the best ordering policy for the store. Order size Unit cost (Rs.) 1 – 49 pcs. 20.00 50 – 149 pcs. 19.50 150 – 299 pcs. 19.00 300 pcs. or more 18.00
Help answer showing level work and formulas

Chapter 5 Solutions

EBK PRINCIPLES OF OPERATIONS MANAGEMENT

Ch. 5.S - Prob. 4PCh. 5.S - Prob. 5PCh. 5.S - Prob. 6PCh. 5.S - Prob. 7PCh. 5.S - Prob. 8PCh. 5.S - Prob. 9PCh. 5.S - Prob. 10PCh. 5.S - A Southern Georgia school district is considering...Ch. 5.S - Prob. 12PCh. 5.S - Prob. 13PCh. 5.S - Prob. 14PCh. 5.S - Prob. 15PCh. 5.S - Prob. 16PCh. 5.S - Prob. 17PCh. 5.S - Prob. 18PCh. 5.S - Prob. 19PCh. 5.S - Prob. 1.1VCCh. 5.S - Prob. 1.2VCCh. 5.S - Prob. 1.3VCCh. 5.S - Prob. 2.1VCCh. 5.S - Prob. 2.2VCCh. 5.S - Prob. 2.3VCCh. 5.S - Prob. 3.1VCCh. 5.S - Prob. 3.2VCCh. 5.S - Prob. 3.3VCCh. 5.S - Prob. 3.4VCCh. 5 - Prob. 1EDCh. 5 - Prob. 1DQCh. 5 - What techniques do we use to define a product? ...Ch. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Describe four organizational approaches to product...Ch. 5 - Explain what is meant by robust design.Ch. 5 - Prob. 9DQCh. 5 - What information is contained in a bill of...Ch. 5 - What information is contained in an engineering...Ch. 5 - What information is contained in an assembly...Ch. 5 - Prob. 13DQCh. 5 - Explain how the house of quality translates...Ch. 5 - Prob. 15DQCh. 5 - Prob. 16DQCh. 5 - Why are the direct interaction and surrogate...Ch. 5 - Prob. 18DQCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Construct a house of quality matrix for a...Ch. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prepare a bill of material for (a) a pair of...Ch. 5 - Prob. 10PCh. 5 - Prepare a script for telephone callers at the...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Prob. 19PCh. 5 - Residents of Mill River have fond memories of ice...Ch. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 1CSCh. 5 - Prob. 2CSCh. 5 - Prob. 3CSCh. 5 - Prob. 1VCCh. 5 - Prob. 2VCCh. 5 - Prob. 3VCCh. 5 - Prob. 4VC
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Text book image
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Text book image
Business in Action
Operations Management
ISBN:9780135198100
Author:BOVEE
Publisher:PEARSON CO
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.