Principles Of Operations Management
Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
Question
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Chapter 5.S, Problem 14P

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 14P

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 $3.68 $4.15 $3.00
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 14P

The revenue retrieval amount for PM is $5.06.

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 $3.68 $4.15 $3.00
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 $3.68 $4.15 $3.00
Motor housing $4.05 $3.45 $2.45 $1.90
Trimmer head $1.05 $0.85 $1.10 $0.75
Total $8.28 $11.93 $8.85 $6.30
Total retrieval $5.06

Table 2

Revenue retrieval amount=$8.28+$11.93$8.85$6.30=$5.06

The revenue retrieval amount is calculated by subtracting all the costs involved from the resale revenue obtained which is $5.06.

Hence, the revenue retrieval amount for PM is $5.06.

c)

Summary Introduction

To determine: The better model in terms of design.

c)

Expert Solution
Check Mark

Answer to Problem 14P

The better model in terms of design is PM.

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 $3.68 $4.15 $3.00
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 PM has better design alternatives in terms of revenue retrieval because it has the highest revenue retrieval.

Hence, the PM is the better design alternative because it has a higher revenue retrieval opportunity.

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Chapter 5 Solutions

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
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