OPERATIONS MANAGEMENT CUSTOM ACCESS
OPERATIONS MANAGEMENT CUSTOM ACCESS
11th Edition
ISBN: 9780135622438
Author: KRAJEWSKI
Publisher: PEARSON EDUCATION (COLLEGE)
bartleby

Videos

Textbook Question
Book Icon
Chapter A, Problem 9P

The Tri-County Generation and Transmission Association is a nonprofit cooperative organization that pro vides electrical service to rural customers. Based on a faulty long-range demand forecast, Tri-County overbuilt its generation and distribution system. Tri-County now has much more capacity than it needs to serve its customers. Fixed costs, mostly debt service on investment in plant and equipment, are $82.5 million per year. Variable costs, mostly fossil fuel costs, are $25 per megawatt-hour (MWh, or million watts of power used for 1 hour). The new person in charge of demand fore casting prepared a short-range forecast for in next year’s budgeting process. That forecast calls for Tri-County customers to consume 1 million MWh of energy next year.

  1. How much will Tri-County need to charge its customers per MWh to break even next year?
  2. The Tri-County customers balk at that price and conserve electrical energy. Only 95 percent of fore casted demand materializes. What is the resulting surplus or loss for this nonprofit organization?

Blurred answer
Students have asked these similar questions
What do you feel is the most effective way to communicate with families? Describe how you have used this/these technique(s).
PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below: Supply/Demand Info   Beginning        Jan           Feb           Mar           Apr           May           Jun      Forecast (demand)   53,800 53,400 51,000 63,800 49,200 59,000 Regular production               Overtime production               Subcontract production                      Ending inventory 4,000             Hired employees               Fired employees               Total employees 190             Cost variables are as follows: Cost Variables                           Labor cost/hour $16 Overtime cost/unit $39 Subcontracting cost/unit    $35 Holding cost/unit/month    $14 Hiring cost/employee $3,100 Firing cost/employee $5,500 Here is some additional relevant (capacity) information: Capacity Information                           Total labor hours/SSD 4 Regular production units/employee/month    200…
Discuss how a human resource professional can better gain the confidence of senior management and, thereby, become a key participant/player in the organization’s future.
Knowledge Booster
Background pattern image
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
  • 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
    Practical Management Science
    Operations Management
    ISBN:9781337406659
    Author:WINSTON, Wayne L.
    Publisher:Cengage,
    Text book image
    Marketing
    Marketing
    ISBN:9780357033791
    Author:Pride, William M
    Publisher:South Western Educational Publishing
  • Text book image
    MARKETING 2018
    Marketing
    ISBN:9780357033753
    Author:Pride
    Publisher:CENGAGE L
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
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Text book image
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L
Forecasting 2: Forecasting Types & Qualitative methods; Author: Adapala Academy & IES GS for Exams;https://www.youtube.com/watch?v=npWni9K6Z_g;License: Standard YouTube License, CC-BY
Introduction to Forecasting - with Examples; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=98K7AG32qv8;License: Standard Youtube License