QUESTION 4 a. Differentiate between design capacity and capacity utilization. b. Briefly describe three capacity expansion strategies. \
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Breakeven Analysis
Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.
Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
QUESTION 4
a. Differentiate between design capacity and capacity utilization.
b. Briefly describe three capacity expansion strategies. \
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- QUESTION 4 a. Why is the capacity decision important? b. Describe six tactics for matching capacity to demand. c. The staff training center at a large regional telecommunications company provides training sessions in Microsoft office to all employees. Assume that the capacity of this training system was designed to be 2000 employees per year. Since the training center was first put in use, the program has become more complex, so that 1500 now represents the most employees that can be trained per year. In the past year, 1350 employees were trained. i. Calculate the efficiency of this system. ii. Calculate the utilization of this system. d. A factory produces 2000 units a month. If design capacity is 3000 and efficiency is 80%. i. Calculate the utilization rate. ii. Calculate the effective capacity.QUESTION 4a. Differentiate between design capacity and capacity utilization. b. Briefly describe three capacity expansion strategies. c. An airline company must plan its fleet capacity and long-term schedule of aircraft usage. For oneflight segment, the average number of customers per day is 70, which represents a 65 percentageutilization rate of the equipment assigned to the flight segment. If demand is expected toincrease to 84 customers for this flight segment in three years, and management requires acapacity cushion of 25 percent, calculate the following:-i. the planned capacity requirement.ii. the maximum number of customers the flight segment can accommodate.iii. the efficiency rate of the flight segment assuming that the current effective capacity of theflight segment is 93 customers.M 团 LL 过 R Quèstion 5 Gordon Miller's job shop has three work areas - machining (M), dipping in a chemical bath (D) and plating (P). The number of work pieces moved per day and the distances between the work areas (in metres), folow: Pieces Moved between Work Areas Each Day: M 23 32 Distances between Centers of work Areas in metres D. It costs Gordon R10 to move 1 work piece one metre Calculate the daily total material handling cost of this layout. 24°C Mostly sunny F1 F5 F7 F8 F10 61 23 & 2. 3. 4. 5. 6. 7. 8. 6. G K H. N Alt Alt ideapad S145 2-side Narrow
- Question No. 4: Nongshim USA has the design capacity of 1,200,000 pounds of noodles andan effective capacity of 1,000,000 pounds of noodles for Chapaghetti and Neoguri per week.Since the release of the movie Parasite on Netflix and other movie on-demand services, thedaily demand of noodles is expected to spike from 100,000 pounds of noodles to 150,000pounds of noodles. Is there a capacity cushion or a gap? Explain. (Hint: Assume that salestake place 7 days of the week and 4 weeks in a month). Question No. 5: Given the previous information, what should the company do about youranswer in Question No. 4?Question 1 Shown below are details on all variable inputs consumed by Samsung Plasma TV factory in 2014. At these consumption rates, the plant was able to produce 100 TVs per day. (a) Unit cost ($) Consumption rate 100 ton per day ton per week labor hour per month Plastic 4 |per ton Chemical 60 2 per ton Labor 80 10 per hour Assume that all unit cost is constant and the factor operates 10 hours per day, 6 days per week and 3 weeks per month. (i) Determine the productivity of Labor-hour (ii) Determine the multi productivity of Chemical and Plastic. (iii) The Operations Manager wants to increase productivity of the Samsung Plasma TV. According to the concept of Productivity Measure as discussed in chapter 1, describe TWO (2) approaches where productivity of the Samsung Plasma TV can be increased. Explain your conclusion.Problem 1 Coveral vield tests for roasting rounds of beef have been carefully undertaken. A summary of results (average per round) follows: As purchased (AP) Weight = Servable Weight = Cost (AP) 22 lb 7 oz 17 lb 10 oz $6.95 per Ib %3D a. What is the cost per servable pound? b. Use the above information to determine the number of pounds of rounds to purchase for a weekend buffet being planned for 275 guests (six [EP-on the plate] ounces will be served to each guest). c. Use the above information to calculate a cost factor and then use the cost factor to determine the revised cost per servable pound when the AP price of the round rises to $7.45 per pound. d. Using the revised cost per servable pound, calculate the per portion cost for the six- ounce portion that will be provided on the buffet.
- Question 4) APP Linear Programming Given the following information: Quarter Demand Regular Prod. Capacity = 3,000 units/gt 8,000 Overtime Prod. Capacity = 800 units/gtg 4,000 Subcontracting Capacity = 1,800 units/gt Regular Prod. Cost = $20/unit Overtime Prod. Cost = $25/unit 1 2 2,000 Inventory Capacity = 6,000 untis/atr Subcontracting Cost = $35/unit Inventory Cost 3 Beginning Inventory = 500 units = $4/unit/gtr Linear programming is to be used to determine a production plan strategy of Level Production, Overtime, and Subcontracting. a. Formulate the Objective Function (note that there are 3 quarters). b. Formulate all Constraints (standardized). c. How many decision variables are in the model? d. How many constraints are in the model? (do not include non-negativity constraints)Question 1 What is the capacity of the system in the scenario below? Scenario: A large, high volume warehouse-style discount grocery & retail operation receives pallets of wholesale goods to stock their shelves. Each day the Shipping/Receiving (S/R) manager verifies & logs receipt of pallets which takes about 30 minutes (0.5 hours per pallet, hpp). The S/R manager then sends the received pallets to the staging area for pricing. It takes just about 75 minutes (1.25 hours) to price a pallet of goods; consequently, there are two “pricers”. The priced items are then place on the shelves throughout the warehouse by nine “stockers” at an average rate of about a pallet every 90 minutes (1.5 hours) per stocker. At the same time the stockers are placing items on shelves, an employee called a “shelf-spotter” rotates stock forward in the shelving to make room for the stockers which takes about 12 minutes (0.20 hours) per pallet-quantity of items. At the end of each day an analyst…QUESTION 5 Hoosier Manufacturing operates a production shop that is designed to have the lowest unit production cost at an output rate of 100 units per hour. In the month of July, the company operated the production line for a total of 175 hours and produced 16,900 units of output. a. What was its capacity utilization rate for the month? b. Now the production shop will produce a new product and need to order the new part. Demand for an item is 1,000 units per year. Each order placed costs $10; the annual cost to carry items in inventory is $2 each. In what quantities should the item be ordered? Selected Answer: OPM FINAL QUESTION 5.xlsx Attach File Browse Local Files QUESTION 6 Browse Content Collection Attach File Remove Bob's Department Store would like to develop an inventory ordering policy with a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is…
- D Question 1 Capacity Planning Using Oversli Factors does not consider historical percentages at the work centers when computing capacity needs. Ⓒue False Question 2 In aggregate planning, the amount of overtime and the size of the work force are both adjustable elements of capacity. Othe FalseQUESTION 2 No 2 Rock and Ventilation (RV) shaft of Deep Levels Gold Mining Ltd was designed to handle 255 000 tons of rock per month. The effective capacity of the mine is, however, only 245 000 tons of rock per month. 2.1 Calculate the efficiency of this shaft for the past month when 225 000 tons of rock were hoisted. 2.2 Calculate the productivity of employees per panel that produces 36 m2 per blast when 9 persons are required per panel.Problems 1. Joe's Tasty Burger has determined that its production facility has a design capacity of 400 hamburgers per day. The effective capacity, however, is 250 hamburgers per day. Lately Joe has noticed that output has been 300 hamburgers per day. Compute both design and effective capacity utilization measures. What can you conclude?