PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
11th Edition
ISBN: 9780135226742
Author: HEIZER
Publisher: PEARSON
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
Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items customers want. She decides to experiment with inventory control methods, such as using a continuous review (fixed-order quantity) and/or periodic review (fixed-order period) system. The 28-ounce bottle of Super Algaecide (SA) is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor 160 miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the right quantity at the right time. She collected the following data:   Demand = 10 boxes per week Store open = 48 weeks/year Order cost = $36/order Lead-time = 5 weeks Item cost = $72/box Std. deviation in weekly demand = 8 Inventory-holding cost = 25 percent year Service level = 90 percent     What is the economic order quantity (EOQ) rounded to the next highest number? Round to the…
Overview and history of South Africa’s road, rail and freight transport network. please include refere
Fine an example of a business experiencing a short-term or long-term example of a bottleneck and how the organization improved overall efficiency.   Include in your post the reference with supportive citations in the discussion reply.

Chapter 5 Solutions

PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB

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
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
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
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College
Text book image
Contemporary Marketing
Marketing
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Cengage Learning
Text book image
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning