Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 3.3Q
Summary Introduction
Interpretation:If it is reasonable to change the existing strategy for current three plant system with reason is to be determined.
Concept Introduction:Revenue Per User (RPU) can be defined as the ratio which is used to express the revenue generated by a company on a per user basis.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Which of the following on McFarlan's grid best describes applications that may be of future strategic importance?
The delivered-equipment cost for a fully equipped CNC machining system is $4.6 million. The direct cost factor is 1.52 and the indirect cost factor is 0.31. Estimate the total plant cost if the indirect cost factor applies to (a) the delivered-equipment cost only, and (b) the total direct cost.
A 1,500,000 SF plant employs 300 people and produces 242,000 LCD panel per month. The plant isidle, on average, 2 months each year for maintenance, repairs, and retooling. The plant has fixed costs of $3,000,000 per month and variable costs of $90 per LCD panel. What is the total operating cost for the plant per YEAR? Express your answer in $ to the nearest $1 million.
_________
Chapter 2 Solutions
Practical Operations Management
Ch. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5P
Ch. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 1.1QCh. 2 - Prob. 1.2QCh. 2 - Prob. 1.3QCh. 2 - Prob. 2.1QCh. 2 - Prob. 2.2QCh. 2 - Prob. 2.3QCh. 2 - Prob. 3.1QCh. 2 - Prob. 3.2QCh. 2 - Prob. 3.3QCh. 2 - Prob. 3.4Q
Knowledge Booster
Similar questions
- Sweet Tooth Inc., a leading chocolatier, can produce 100 pounds of chocolate powder from 1000 pounds of cocoa beans in 10 hours of processing. Not satisfied with its output, the company is contemplating switching to a more automated process that would yield 200 pounds of chocolate powder from 1800 pounds of cocoa beans and take 15 hours to process. The cost of processing the $25 per hour. Cocoa beans cost $6.80 per pound. Calculate the following and show step by step breakdown. The labor productivity of the current process The labor productivity of the proposed process The multifactor productivity of the current process The multifactor productivity of the proposed process Should Sweet Tooth Inc. continue with the existing process or switch to the new process?arrow_forwardDescribe the reactor strategyarrow_forwardHow are operational scheduling and supply chain sustainability related? The issue is whether or not the company can make use of both.arrow_forward
- Explain.. How does operations planning contribute to risk mitigation and business continuity planning?arrow_forwardA small town is considering two potential alternatives for a garbage collection system. The following cost data has been compiled. If the interest rate is 6%, Compute the AB /AC ratio. Year System A System B 0 -$250,000 -$375,000 1-30 20,000 32,000 30 40,000 50,000 O 1.34 1.09 0.96 ○ 2.27arrow_forwardHasty can produce 1,100 pairs of sneakers per hour at maximum efficiency. There are four 6-hour shifts each day. Due to unavoidable operating interruptions, production averages 1,000 units per hour. The plant actually operates only 26 days per month. Based on the current month's budget, Hasty estimates that it will be able to sell only 613,000 units due to the entry of a competitor with high personalization capabilities. But demand is unlikely to be affected in future and will average around 621,000 units each month. Assuming 30 days per month, calculate Hasty's monthly (1) theoretical capacity. (2) practical capacity. (3) normal capacity utilization, and (4) master-budget capacity utilization.arrow_forward
- A laboratory that performs the industrial ope Industrial Processes Television Mobile Time Manufacturing Assembly Packaging Profit 10 6 2 10 8 10 3 6 At most 2000 At most 1600 At most 200 Required: Find the maximum value for profits and the number of materials produced from televisions and mobiles, using graphical method.arrow_forwardDBS is also expecting the demand for its top-of-the range devices to increase further from the next year. Given the increase in annual requirement, the production manager is contemplating to start manufacturing the special components in-house to save costs rather than sourcing them from outside. Given the current purchase price of $9000 per unit, what will the average annual requirement need to be in order to justify making the components in-house if the variable cost of making is $6750 per unit and an upfront fixed cost of $55,000,000 is needed to procure the necessary plant and equipment? However, in the event that the expected increase in demand does not materialize and the demand is actually forecast to drop to 20,000 units next year, then what will be the maximum price per unit that DBS would be willing to pay to the supplier in order to continue buying from them? Going forward, if it is found to be a better decision to make the components in-house, DBS will then need to…arrow_forwardAmazon announced it had bought 11 used Boeing 767-300 passenger jets from struggling airlines Delta and WestJet. Amazon Air now makes an average of 140 flights per day and is expanding its fleet. Using value chain analysis, discuss the impact this strategic move will have on the market.arrow_forward
- 6.1 Read the following mini case study and answer the question that follows: Pizza Egoli (Pty) Ltd has eight outlets in Gauteng. All these outlets are owned by the company. Decisions are centralised and are made by the original founder of the business. All outlets use wood fires when making the pizzas. However, due to clients complaining about the time that it takes to make the pizzas, top management has decided to completely revise the processes in the outlets – from ordering the pizzas to receiving the final product. This meant that at least two employees per outlet will lose their jobs as new types of skill will be required in the outlets. Suggest a change process to the Top Management of Pizza Egoli (Pty) Ltd that will ensure that the outlets are managed successfully.arrow_forwardList some examples of firms that might decide to shut down in the short run. What do you think would make them choose this course of action? Discuss the industry and firms in it, along with the conditions prompting the potential shutdowns. Could seasonality in demand be a potential factor? Explain. What is the exact price for the product that is referred to as the “shut down” point in the short run?arrow_forwardYou are the operations manager for Louisiana Oysters, Inc. The company has designed new "Oyster shucking" knife that is expected to reduce risk of injury to the user. Your firm plans to begin production of these knives soon. Either of two machines, A or B could be used for in-house production. Machine A would have a fixed cost of $6000 and a variable cost of $5 per knife produced, and machine B would have a fixed cost of $9600 but a variable cost of $3 per knife. Each knife is expected to sell for $15. Determine the Range of annual “Volume of Business“[Q], for which each of the two alternative machines would be optimal i.e. best. Hint: Compute various break-even points for your evaluationarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
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
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.