Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
11th Edition
ISBN: 9780135639221
Author: Jay Heizer, Barry Render
Publisher: PEARSON+
Question
Book Icon
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.

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
what is the arithmetic average annual return per year?
Describe a simple sales information system for an online store, including its products, branches, and its appraisal, so that it captures the attention of an average person without a university degree or a particular career, and develop a report about it.
Note: A waiting line model solver computer package is needed to answer these questions. The Kolkmeyer Manufacturing Company uses a group of six identical machines, each of which operates an average of 23 hours between breakdowns. With randomly occurring breakdowns, the Poisson probability distribution is used to describe the machine breakdown arrival process. One person from the maintenance department provides the single-server repair service for the six machines. Management is now considering adding two machines to its manufacturing operation. This addition will bring the number of machines to eight. The president of Kolkmeyer asked for a study of the need to add a second employee to the repair operation. The service rate for each individual assigned to the repair operation is 0.40 machines per hour. (a) Compute the operating characteristics if the company retains the single-employee repair operation. (Round your answers to four decimal places. Report time in hours.) La = L = Wa W = h…

Chapter 5 Solutions

Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)

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
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
Text book image
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College