Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Textbook Question
Chapter 7, Problem 5P
Stan Fawcett’s company is considering producing a gear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit, with a minimum order of 3,000 units. Stan estimates that it will cost $15,000 to set up the process and then SI.82 per unit for labor and materials.
a) Draw a graph illustrating the crossover (or indifference) point.
b) Determine the number of units where either choice has the same cost.
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Merrimac Manufacturing Company has always purchased acertain component part from a supplier on the East Coast for$50 per part. The supplier is reliable and has maintained thesame price structure for years. Recently, improvements in operations and reduced product demand have cleared up somecapacity in Merrimac’s own plant for producing componentparts. The particular part in question could be produced at$40 per part, with an annual fixed investment of $25,000.Currently, Merrimac needs 300 of these parts per year.a. Should Merrimac make or buy the component part?b. As another alternative, a new supplier located nearby isoffering volume discounts for new customers of $50per part for the first 100 parts ordered and $45 per partfor each additional unit ordered. Should Merrimacmake the component in-house, buy it from the newsupplier, or stick with the old supplier?c. Would your decision change if Merrimac’s annual demand increased to 2000 parts? increased to 5000 parts?d. Develop a set of…
Merrimac Manufacturing Company has always purchased acertain component part from a supplier on the East Coast for$50 per part. The supplier is reliable and has maintained the
same price structure for years. Recently, improvements in op-erations and reduced product demand have cleared up some
capacity in Merrimac’s own plant for producing componentparts. The particular part in question could be produced at$40 per part, with an annual fixed investment of $25,000.Currently, Merrimac needs 300 of these parts per year.a. Should Merrimac make or buy the component part?b. As another alternative, a new supplier located nearby isoffering volume discounts for new customers of $50per part for the first 100 parts ordered and $45 per partfor each additional unit ordered. Should Merrimacmake the component in-house, buy it from the newsupplier, or stick with the old supplier?
c. Would your decision change if Merrimac’s annual de-mand increased to 2000 parts? increased to 5000 parts?
d. Develop a set…
Chapter 7 Solutions
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Ch. 7.S - Prob. 1DQCh. 7.S - Prob. 2DQCh. 7.S - Prob. 3DQCh. 7.S - Prob. 4DQCh. 7.S - Prob. 5DQCh. 7.S - Distinguish between bottleneck time and throughput...Ch. 7.S - Prob. 7DQCh. 7.S - Prob. 8DQCh. 7.S - Prob. 9DQCh. 7.S - Prob. 10DQ
Ch. 7.S - Prob. 11DQCh. 7.S - Prob. 12DQCh. 7.S - What are the techniques available to operations...Ch. 7.S - Amy Xias plant was designed to produce 7,000...Ch. 7.S - For the post month, the plant in Problem S7.1,...Ch. 7.S - Prob. 3PCh. 7.S - Prob. 4PCh. 7.S - Prob. 5PCh. 7.S - The effective capacity and efficiency for the next...Ch. 7.S - Southeastern Oklahoma State Universitys business...Ch. 7.S - Prob. 8PCh. 7.S - Prob. 9PCh. 7.S - Prob. 10PCh. 7.S - The three-station work cell illustrated in Figure...Ch. 7.S - The three-station work cell at Pullman Mfg., Inc....Ch. 7.S - The Pullman Mfg., Inc., three-station work cell...Ch. 7.S - Prob. 14PCh. 7.S - 10 minutes per unit. Part 2 is simultaneously...Ch. 7.S - Prob. 16PCh. 7.S - Prob. 17PCh. 7.S - Using the data in Problem S7.17: a) What is the...Ch. 7.S - Prob. 19PCh. 7.S - Prob. 20PCh. 7.S - Prob. 21PCh. 7.S - Prob. 22PCh. 7.S - Prob. 23PCh. 7.S - Prob. 24PCh. 7.S - Prob. 25PCh. 7.S - Prob. 26PCh. 7.S - Prob. 27PCh. 7.S - Prob. 32PCh. 7.S - Prob. 33PCh. 7.S - Prob. 34PCh. 7.S - Prob. 35PCh. 7.S - Prob. 36PCh. 7.S - Prob. 37PCh. 7.S - Prob. 38PCh. 7.S - Prob. 39PCh. 7.S - Prob. 1VCCh. 7.S - a capacity expansion plan and a new 11-story...Ch. 7.S - a capacity expansion plan and a new 11-story...Ch. 7 - Ethical Dilemma For the sake of efficiency and...Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 11DQCh. 7 - Prob. 12DQCh. 7 - Prob. 13DQCh. 7 - Prob. 14DQCh. 7 - Prob. 15DQCh. 7 - Prob. 16DQCh. 7 - Prob. 17DQCh. 7 - Prob. 18DQCh. 7 - Prob. 19DQCh. 7 - Prob. 1PCh. 7 - Usingthedatain Problem 7.1, determinethemost...Ch. 7 - Prob. 3PCh. 7 - Refer to Problem 7.1. If a contract for the second...Ch. 7 - Stan Fawcetts company is considering producing a...Ch. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Metters Cabinets, Inc., needs to choose a...Ch. 7 - Prob. 10PCh. 7 - Nagle Electric. Inc., of Lincoln, Nebraska, must...Ch. 7 - Stapleton Manufacturing intends to increase...Ch. 7 - Prepare a flowchart for one of the following: a)...Ch. 7 - Prepare a process chart for one of the activities...Ch. 7 - Prob. 15PCh. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 1CSCh. 7 - Prob. 2CSCh. 7 - Prob. 3CSCh. 7 - Process Strategy at Wheeled Coach Wheeled Coach,...Ch. 7 - Prob. 1.2VCCh. 7 - Prob. 1.3VCCh. 7 - Prob. 1.4VCCh. 7 - Alaska Airlines: 20-Minute Baggage...Ch. 7 - Prob. 2.2VCCh. 7 - Prob. 2.3VCCh. 7 - Prob. 2.4VCCh. 7 - Prob. 2.5VCCh. 7 - Prob. 3.1VCCh. 7 - Prob. 3.2VCCh. 7 - Prob. 3.3VCCh. 7 - Prob. 3.4VC
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