The bank has 3 tellers and on average, it takes 2 minutes to service a customer. In general, centralized power plants can affect the environment in the following ways: In addition to these environmental impacts, much of the primary energy (total energy content) of fossil fuels burned at power plants is wasted during generation and delivery to end-users. The following diagram shows a 4-step process that begins with operation 1 and ends with Operation 4. B. Find the number of machines required to produce 3000 parts per week. A loan processing operation that processes an average of 3 loans per day. Each backpack has a gross profit of $40, a holding cost of $10, and a shortage cost of $15. When a firm buys goods and services, it is relying upon suppliers on important dimensions such as quality, delivery, and cost; the profits that the company could earn by producing the goods and services in-house now go to the suppliers; Buying may also tip the balance of power in favor of suppliers. Select all that apply: (I) The master production schedule, (II) Routing information, (III) Current shop loads, (IV) Pla A work center consisting of 3 machines operates 40 hours a week. If the standard deviation of the weighing scale is 0.02, is the process considered capable? This financial flexibility may prove crucial when fixed costs are considerable, determining if products made in-house will be produced in one or more facilities, and if these facilities should be located in one or more countries. d. Dividends were $1,250 cash per month, and the owner invested an additional$35,000 cash in exchange for common stock. Major consulting companies around the world have developed global supply-chain management consulting practices. The effective capacity is 40 engines per day. 2. True b. Which of the following assumptions is embodied in the AFN equation? Provide one example of this importance in a health services environment to support your argument. Owner made no investments in the business, but dividends were $1,250 cash per month. Choose the best answer below to complete the statement: A company's records indicate that it took 500 minutes to produce 1000 units of one of its products. A production system in which goods dominate the value of the product Students also viewed. What is its utilization if it processes an average of 45 loans per day? If variable manufacturing overhead is applied to production based on direct labor hours and the direct labor efficiency is unfavorable, will the variable overhead efficiency variance be favorable or unfavorable, or could it be either? One production facility will usually be favored when _______. a) What is the Economic Prod, Consider a product with a daily demand of 400 units, a setup cost per production run of $100. When capacity is inadequate, customers can be lost. All other trademarks and copyrights are the property of their respective owners. The majority of electricity generation in the United States today is coordinated by regional system operators to ensure reliability. a) What design capacity would be needed to achieve an actual output o Our company's manufacturing facility uses work cells. If capacity is set at 25 million tons, how much of a capacity cushion is there? Divestiture ii. ______ is responsible for the design of new products in the production process. a. 7. financial considerations Production and sales were: - Weight Sales Additional processing costs P 317,000 lbs. a. Under what conditions would Zona Co.'s subsidiary consider using a leading strategy to reduce transaction exposure? The comparison of the expected cost of production against the actual cost of production typically occurs in the A. investment center. Its income statement and division of costs for 2014 are given in the following table. The Austin, Texas plant of Computer Products produces disk units for personal and small business computers. 5. 2. control over quality Recent flashcard sets. The company's standards call for 2 DLHs for each unit produc, Companies that produce large numbers of standardized products within a particular batch would most likely use which type of costing? $148,148 B. (a) constant returns of scale (b) economies of scale (c) diseconomies of scale (d) minimum efficient scale. A. increasing production lowers the average cost of each unit produced B. increasing production increases the average cost of each unit produced C. decreasing production lowers the average cost of each unit produc, For the current period, Kayenta Company's manufacturing operations yield a $4,000 unfavorable price variance on its direct materials usage. What is the utilization rate? The replenishment level you have chosen is 50 backpacks. In small countries, or in municipalities where landfills are full and . b. 8. Capacity planners must keep a narrow focus in order to stay on track. The. Explain the process of aggregate capacity planning in service businesses. b. Suppose the firm can hire labor at a wage of $10 per hour and output can be sold at a price of $100 per unit. Competing against other competitors for the attention of critical component suppliers 2. production A. a. (a) include staffing and scheduling (b) include inventory control (c) include defining product specifications (d) None of the above. Mark Customers arrive at a bank at a rate of 50 per hour. Last year saw 15,000 customer orders at the mill and the manager has a new John Battle Creek Cereal Company has four main products: Corn Flakes, Frosted Flakes, Bran Flakes and Strawberry Flakes. Direct Labor Rate and Efficiency Variances The Woods Enterprises prepared the following standard costs for the production of one stuffed bear: Actual production costs for the production of 1,000 stuff, Volume-based rates produce inaccurate product cost when: a) A large share of factory overhead costs is volume-based. Three types of Use the process information provided in the following table, when the sequence of flow is A ? 6. The IMF provides short-term loans to countries in financial crises. Long-term capacity decisions that confront managers include all of the following except: a. workforce size b. capital c. equipment. One production facility will usually be favored when _______. Related Diversification iv. Henry Ford was once asked what colors the Model T would be available in. Because of scheduled maintenance of their equipment, management feels that only 2,500 pounds of clothes can be washed in Last year, Wei Guan Inc. had $350 million of sales, and it had $270 million of fixed assets that were used at 65 percent of capacity. What scale of production minimises ray average costs if. In a job shop, effective capacity is only 45 percent of design capacity, and actual output is 54 percent of effective output. 134 . The beer facility has system efficiency of 90 percent, and the utilization is 80 percent. Market Penetration iii. True or False: International sourcing requires a shorter capacity planning time frame compared to domestic sourcing. True or False: Adding facilities and long lead time equipment are examples of modifying capacity in the short-range planning. During the month, the, A small computer manufacturing company forecasts the demand over the next n months to be In any month it can produce r units, using regular production, at a cost of b dollars per unit. d. a company is extremely profitable. the integration and coordination of global supply chains would not be possible without information technologies such as the Internet and enterprise resource planning systems. c. No dividends were paid during the year, but the owner did invest an additional$55,000 cash in exchange for common stock. A decrease in the economy's capacity utilization rate: a. tends to decrease the unemployment rate. Centralized generation requires transmission lines, which also use land. Find the firm's short run cost function, if Ki is fixed at $100,000. The tariffs prevailing in this industry are currently low. 3. What are some capacity measures for each of follow a. university b.hospital c.computer d.farm. the point at which unit costs stabilize; When demand is equal or lower than the minimum efficient scale, one production facility location is preferred. Production Facilities means any storage, separation, treating, dehydration, artificial lift, power supply, compression, pumping, metering, monitoring, flowline, and other equipment directly associated with oil wells, gas wells or injection wells, prior to any processing plant or refinery. b. is just breaking even. 1- If a product can serve all customers worldwide,then production facilities can be in one country. The demand for your backpacks follows a norm, The purchase price of capital is a. the value of the capital to the firm. According to conversations with its investment bankers, the firm will receive$60 per share from the sale of new common stock. Allow access to data and information in real time When making supply chain decisions, such as where in the world to locate a new plant or whether to use a foreign or domestic supplier, most managers rely on the discounted cash flow (DCF) model to. If the plant efficiency is 75?%, then its effective capacity? Utilization is ________. c. There is no maximum utilization. The 'weights (Wi)' typically used in the numerator and denominator of the center-of-gravity computational method is: a) based on volumes. 4. This is an example of ______. Cost of regular production = 60 $/u Cost of overtime production = 90 $/u Inventory holding cost =, A company uses a standard costing system. At the beginning of the year, budgeted (estimated) manufacturing overhead costs totaled $400,000, budg, A firm whose price is below its average cost: a. is earning positive economic profit. Why? One production facility will usually be favored when a. unemployment is very low. The operation has a design capacity of 11 lo Identify four potential unethical actions or inactions related to capacity planning, and the ethical principle it violates. Maximizes flexibility by allocating orders among the suppliers in a dynamic way Mariana_Joves. Argue why capacity analysis is important in a health services environment. The normal selling price of this product is $50.50 each. Enforcing contracts with foreign suppliers Normal costing c. Operations costing d. Proce, Suppose Camp Enterprises produces tents and faces wages in the labor market of $15 per hour and a rental rate of capital of $20 per hour. Risk of relying upon suppliers on important production process dimensions such as quality, delivery, and cost Discuss the factors that influence the number of facilities that a firm chooses to operate. c. developing alternative strategies for addressing ga A computer repair service has a design capacity of 80 repairs per day. Air pollution from burning fuel often includes carbon dioxide, sulfur dioxide, nitrogen oxides, mercury, and particulate matter. Operations Management questions and answers. In millions, by how much could Wei Guan's sales increase before For the next six months, Kurtz Company projects the following information (in units). fixed costs are low. - any problems global businesses face are due to scandals regarding their products originated in substandard supply chains, because some companies in the supply chain could not trace back to suppliers the faulty components in the defective products. A total of 2,000,000 shares of common stock may be issued under the charter of Aspin Corporation. c. demand is higher than the minimum efficient scale. The capacity of the production system defines a firm's competitive boundaries. Indicate whether the following statement is true or false: Creating capacity that exceeds the amount of products that can be sold is inefficient because unused capacity wastes the firm's resources. What is the maximum sales growth rate North could achieve bef A long line is observed at airport security. The FIRST basic step in ethical decision-making is to= define all the facts and circumstances 3. The average time for waiting during the production process and materials handling is 0.15 days. If the good is exported around the world at a pr, Antuan Company set the following standard costs for one unit of its product.The predetermined overhead rate $18.50 per direct labor hour is based on an expected volume of 75% of the factory's capacity, Sherfield Company uses a normal costing system, applying overhead using a single plant-wide rate. The normal production capacity for the Fabrication Department is 10,000, A firm combines labor (L) and capital (K) to produce output (Q). What is its expected output per week? Q = A f (1, K) = 30L + 6L^2 - 0.10L^3 (a) Is this a short run or a long run production function? The firm uses two factors of production - chemicals and labor. The best-run firms usually have the best supply chain, in that superior supply-chain management: Drives standardization and centralization By using overti, You would like to construct an aggregate production plan for product X341 for the next four quarters. However, its effective capacity is 64 repairs per day, and its actual output is 62 repairs per day. \\ b) A c Material delays have routinely limited production of household sinks to 480 units per day. Over a period of 4 weeks, a work center produced 50, 45, 42, and 52 standard hours of work. Explain the criteria for aggregate capacity planning, including a diagram. b. e. a company is extremely profitable. The cost of an aerobic digester system with a capacity of 140 million gallons per day (MGD) is $2.1 million. The partners decide to liquidate the partnership. The operation has a design capacity of 10 lo A firm is said to have excess capacity when: 1. it produces a level of output such that marginal revenue equals price. Each agent is paid $28,000 per year and is able to process 4,000 purchase orders. A. C. 8 percent. - control over quality. Secure .gov websites use HTTPS The wage rate in this area is w = $15, and the cost of capital is r = .05. a. The Best Beer Corporation has a beer-processing facility in Columbus, Ohio. Assume you own a small (US$15,000,000) manufacturing company that makes components for the automobile industry. Sets stage for offsets through direct procurement purchasing in and indirect support of local markets Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. (b) Give an example. Simplifies the production process A station with three single machines operating in parallel with 20-minute processing times at each station. The standard quantity requ, Supose the marginal product of labor is currently equal to its average product. The MPK = 100L and MPL = 100K. Production averages 100 units per day, while demand is 40 units per day. China's business ecosystem of networked suppliers,. All other trademarks and copyrights are the property of their respective owners. Consider the following two mutually exclusive alternatives, related to an improvement project, and recommend which one should be implemented. The system that businesses use to produce products, A production system in which goods dominate the value of the product, A production system in which services dominate the value of the product, Goods and services that integrate a product, -Management of the direct resources that are involved in the production system of a business organization True or false? Honey industries has $4 billion in sales and $1.6 billion in fixed assets. A new facility has a design capacity of 2,200 units per week and an expected utilization of 96%. In the past month the plant averaged 690 units per day. Producing each tent requires 2 units of capital or 3 worker, A firm is using a single variable input, labor, with a given amount of a fixed input, capital. False. When evaluating a firm with excess capacity, what is true? What design capacity would be needed to achieve an actual output of 17 Material delays have routinely limited production of household sinks to 400 units per day, plant efficiency is 80%, what is effective capacity? Become a Study.com member to unlock this answer! The forecasted demand for fudge for the next four months is 220,150,110, and 70 pounds. To become a multinational corporation, the business must be large and must own a huge amount of assets, both physical and financial. How soon can it be delivered? 2. Given the following diagram, a. Many companies partake in the process of capacity and facilities planning to meet a greater demand. c. the average fixed cost will be lost, The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. Consider a customer service representative who contributes more inputs to his job than his referent, but who receives the same outcomes as his referent. What is the capacity (in customers per hour) of the bakery? Suppose the firm can hire at a wage of $40 per hour and output can be sold at $10 per unit. The average monthly fixed cost per site is RM 25,500, while each unit cost RM 78 to produce and selling price is RM 180 per unit. 4. research and development, When all production system direct resources of a firm originate from and reside in only one country, When one or more of the production system direct resources originate from or are located in more than one country, Transformations applied in the production process, Movement of materials in the production system, Determining which components and raw materials should be produced in-house and which components and raw materials should be acquired from suppliers, When a firm buys components and raw materials globally, When a firm globally produces goods and services, 1. How does this differ from Chris Pavone's situation? Please click here to see any active alerts. If the system?s design capacity is 300 units a day, how efficient is the use of this s Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. The Best Beer Corporation has a beer-processing facility located in Columbus, Ohio. Before starting to produce a board, the PCB machine requires a 19-minute setup. Consider a four-step serial process with the number of workers at each step and processing times given in the list below. Product B only visits machines 1 and 3. Each desk uses four units of wood, and each chair uses three units of wood. What did Dominy earn a master's degree in? View full document The company has an annual production rate of 292,000 units. Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $____. c) are low in proportion to variable costs in the short run. United Industries manufactures a number of products at its highly automated factory. Making components in-house also allows the company more control over deliveries The Albert Nock Company had $210 million of sales last year, and $(A) million of fixed assets which were being operated at 0.75% of capacity.
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