Operations Management (McGraw-Hill Series in Operations and Decision Sciences)
Operations Management (McGraw-Hill Series in Operations and Decision Sciences)
12th Edition
ISBN: 9780078024108
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 7, Problem 11DRQ
Summary Introduction

To determine: Time standards and factors to be taken into account when developing methods.

Introduction: The amount of the dependency on human effort by an organization in terms of achieving its goals is given by the work design. It is directly linked to the productivity of an organization where good work design helps in achieving high productivity.

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Problem 1 (10 Points) Davison Electronics manufactures three LED television monitors, identified as Model A, Model B, and Model C. Davison Electronics four manufacturing plants. Each model has its lowest possible production cost when produced at Plant 1. However, Plant 1 does not have the capacity to handle the total production of all three models. As a result, at least some of the production must be routed to the other manufacturing plants. The following table shows the minimum production requirements for next month, the plant capacities in units per month, and the production cost per unit at each plant: Model Production Cost per Unit Minimum Production Requirements Plant 1 Plant 2 Plant 3 Plant 4 A $25 $28 $37 $34 48,000 B $26 $35 $36 $41 75,000 C $20 $31 $26 $23 60,000 Production Capacity 65,000 50,000 32,000 43,000   Davison’s objective is to determine the cost-minimizing production plan. We have…

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Operations Management (McGraw-Hill Series in Operations and Decision Sciences)

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