MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
11th Edition
ISBN: 9780133885583
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter D, Problem 11P
A
Summary Introduction
Interpretation:the objective function and constraints for maximize the contribution to profits and overheads.
Concept Introduction:Objective functions are the linear functions and the equalities and inequalities are the constraints.
B
Summary Introduction
Interpretation: using the computer package, the interpretation is to be solved
Concept Introduction: Objective functions are the linear functions and the equalities and inequalities are the constraints.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Handerson Corporation makes a product with the following standard costs:
Direct materials
Direct labor
Variable overhead
Standard Quantity
or Hours
8.5 kilos
0.4 hours
0.4 hours
Standard Price or
The company reported the following results concerning this product in August.
Actual output
Raw materials used in production
Purchases of raw materials
Rate
$ 6.00 per kilo
$ 20.00 per hour
$ 6.00 per hour
3,200 units
29,030 kilos
31,600 kilos
Actual direct labor-hours
1,160 hours
Actual cost of raw materials purchases
$ 195,920
$ 22,736
Actual variable overhead cost
$ 7,540
Actual direct labor cost
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are
purchased.
The materials price variance for August is:
Multiple Choice
$5,440 F
De Mar, a plumbing, heating, and air-conditioning companylocated in Fresno, California, has a simple but powerful product strategy: Solve the customer’s problem no matter what, solvethe problem when the customer needs it solved, and make sure thecustomer feels good when you leave . De Mar offers guaranteed,same-day service for customers requiring it. The company provides 24-hour-a-day, 7-day-a-week service at no extra charge forcustomers whose air conditioning dies on a hot summer Sundayor whose toilet overflows at 2:30 A.M. As assistant service coordinator Janie Walter puts it: “We will be there to fix your A/C onthe fourth of July, and it’s not a penny extra. When our competitors won’t get out of bed, we’ll be there!”De Mar guarantees the price of a job to the penny before thework begins. Whereas most competitors guarantee their work for30 days, De Mar guarantees all parts and labor for one year. Thecompany assesses no travel charge because “it’s not fair to chargecustomers for…
Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety of medical procedures (operations) that are considered its “products.” The overhead has been separated into three major activities. The annual estimated activity costs and activity bases follow:
Activity
Budgeted Activity Cost
Activity Base
Scheduling and admitting
$432,000
Number of patients
Housekeeping
4,212,000
Number of patient days
Nursing
5,376,000
Weighted care unit
Total costs
$10,020,000
Total “patient days” are determined by multiplying the number of patients by the average length of stay in the hospital. A weighted care unit (wcu) is a measure of nursing effort used to care for patients. There were 192,000 weighted care units estimated for the year. In addition, Pleasant Stay estimated 6,000 patients and 27,000 patient days for the year. (The average patient is expected to have a a little more than a…
Chapter D Solutions
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
Knowledge Booster
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
- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?arrow_forwardScenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?arrow_forwardPart A is processed on a MILLING machine; Part B is processed on a LATHE machine. Two parts (A and B) are then assembled on an ASSEMBLY machine. Standard times, scrap rates, efficiency, and availability of each machine and the assembly are given in the table below. Determine the number of milling (M), the lathe (L) and the assembly (A) machines needed to produce 100 good parts from this production system during and 8-hour (480 minutes) shift. (Note: Round up the number of parts processed on each station and then round up the number of machines needed).arrow_forward
- Luthan Company uses a plantwide predetermined overhead rate of $22.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $273,600 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor- hours. The company incurred actual total manufacturing overhead cost of $267,000 and 12,600 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period. Manufacturing overhead appliedarrow_forwardA linear programming computer package is needed. The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program. Advertising alternatives include television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown. Constraint Audience per advertisement Radio Online Cost per advertisement Maximum media usage 5 15 10 Radio Budget Online Budget Total Audience Television Radio Online Need Help? 300,000 54,000 120,000 X $2,000 To ensure a balanced use of advertising media, radio advertisements must not exceed 50% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized. Read It 10 (a) If the promotional budget is limited to $27,400, how many commercial messages should be run on each medium to maximize total audience contact? Television $300 20 $600 10 What…arrow_forwardFedori Corporation has a Parts Division that does work for other Divisions in the company as well as for outside customers. The company's Machinery Division has asked the Parts Division to provide it with 4,000 special parts each year. The special parts would require P23.00 per unit in variable production costs. The Machinery Division has a bid from an outside supplier for the special parts at P37.00 per unit. In order to have time and space to produce the special part, the Parts Division would have to cut back production of another part-the YR24 that it presently is producing. The YR24 sells for P40.00 per unit, and requires P28.00 per unit in variable production costs. Packaging and shipping costs of the YR24 are P3.00 per unit. Packaging and shipping costs for the new special part would be only P1.50 per unit. The Parts Division is now producing and selling 15,000 units of the YR24 each year. Production and sales of the YR24 would drop by 20% if the new special part is produced for…arrow_forward
- Tom is studying Chemical Engineering at Bradford University where he has developed a new fermentation process of cheese. His fermentation process is more economical and also consolidates curd of milk solids into cheese in a more environmentally friendly manner. The cheese produced by this process is more nutritious and tastes good too. Tom’s process is so good that he was awarded the young innovator prize by the University. After completion of his degree, Tom has decided to develop his cheese fermentation process into a business. He discussed this idea with his friend Jamal, who has been working as a business manager in MyD-Dairy for the past 15 years. Jamal introduced Tom to Jackie who is in the business of the distribution of dairy products for the past decade and is interested in establishing a new line of cheese production business. All three of them are very excited about this new business idea. Tom’s parents have promised to give him a £10,000 personal loan for the business. Both…arrow_forwardPrescribed fire is an important tool for foresters. A recent article describes how decision analysis is used to decide when, where and what to burn. In one example, a number of areas in the Tahoe National Forest in California had been logged and were being prepared for replanting. Preparation included prescribed burning, and two possible treatments were available: burning the slash as it lay on the ground, or “yarding of and merchantable material” (YUM) prior to burning. The latter treatment involves using heavy equipment to pile the slash. YUM reduces the difficulty of controlling the burn but costs an additional $100 per acre. In deciding between the two treatments two uncertainties were considered critical. The first was how the fire would behave under each scenario. For example, the buyer could be fully successful, problems could arise which could be controlled eventually, or the fire could escape entailing considerable losses. Second if problems developed, they could result in…arrow_forwardA. Which machine would is constraint in the plant? B. Which product mix provides highest gross profit? Product M= ______ units Product N=_______units C. What is the maximum weekly net profit this plant can earn using the product mix from Part b?arrow_forward
- 3-2) The optimal quantity of the three products and resulting revenue for Taco Loco is: A) 28 beef, 80 cheese, and 39.27 beans for $147.27. B) 10.22 beef, 5.33 cheese, and 28.73 beans for $147.27. C) 1.45 Z, 8.36 Y, and 0 Z for $129.09. D) 14 Z, 13 Y, and 17 X for $9.81. 3-3) Taco Loco is unsure whether the amount of beef that their computer thinks is in inventory is correct. What is the range in values for beef inventory that would not affect the optimal product mix? A) 26 to 38.22 pounds B) 27.55 to 28.45 pounds C) 17.78 to 30 pounds D) 12.22 to 28 poundsarrow_forwardTom is studying Chemical Engineering at Bradford University where he has developed a new fermentation process of cheese. His fermentation process is more economical and alsoconsolidates curd of milk solids into cheese in a more environmentally friendly manner. The cheese produced by this process is more nutritious and tastes good too. Tom’s process is so good that he was awarded the young innovator prize by the University. After completion of his degree, Tom has decided to develop his cheese fermentation process into a business. He discussed this idea with his friend Jamal, who has been working as a business manager in MyD-Dairy for the past 15 years. Jamal introduced Tom to Jackie who is in the business of the distribution of dairy products for the past decade and is interested in establishing a new line of cheese production business. All three of them are very excited about this new business idea. Tom’s parents have promised to give him a £10,000 personal loan for the business.…arrow_forwardThe following three questions refer to Sony Records, Inc. Executives of the company are re- releasing Michael Jackson's Thriller CD. The following cost and revenue information pertains to the new CD: CD package and disc (direct material and labor): $2.50/CD Songwriters' royalties: $0.70/CD Recording Artists' royalties: $2.00/CD Advertising & promotion: $380,000 Sony Records Inc.'s Overhead: $300,000 Selling price of CD: $10.00 Question 1: What is the per unit gross marketing contribution? 35% None of these 52% 48%arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
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