Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 1, Problem 3CQ
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To determine: Whether the given statement is true or false.
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- May and Ray have spent years repairing Volkswagens, and have become very knowledgeable in Volkswagen repairs. They have also built up a network of reliable Volkswagen mechanics and parts dealers. Their network profers them superior access to low-cost parts. They eventually decide to open a repair shop of their own. Which of the following statements represents a possible business strategy for May and Ray's repair shop? Group of answer choices “We will double the number of Volkswagens we service each year, thus increasing our volume of parts purchased, thus decreasing our costs and increasing our economic value.” “We will utilize our superior knowledge of Volkswagen repair as well as our network of parts dealers to repair Volkswagens for less than standard price, thus attracting more customers, thus increasing our volume of parts purchase, further decreasing our costs.” “We provide high-quality, efficient Volkswagen repair for a fraction of the going rate.”arrow_forwardRFID technology is used to track the location of goods in transit and in store. Select one: a. False, b. True.arrow_forwardA $45,000 investment in a new conveyor system is projected to improve throughput and increasing revenue by $14,000 per year for five years. The conveyor will have an estimated market value of $4,000 at the end of five years. Using NPV with a MARR of 12%, is this a good investment?arrow_forward
- Please solve all the scenariosarrow_forwardplease help me answer this problem.thank you!arrow_forwardPlease read the mini case below and answer the questions at the end of the mini case. Auto-Technic is a small German company founded and run by an electronics engineer, Peter Schnider. He has built his small business over the past five years by undertaking subcontract work for large electronic companies. The work has mainly involved producing small control devices (Automatic switches, timers, etc.) in response to his business customers’ requests. Peter’s expertise is valued by the organizations with which he has dealt. Having returned from trips outside Germany, Peter noticed an increase in the number of homes making use of automatic garage doors. Drivers would either press a button on a device kept in the car, which activated a switch in a door-opening mechanism fitted to the garage door, or a device would be fixed in the car that automatically triggered a sensor as the car approached, which then operated the garage door-opening mechanism. With his electronics expertise, Peter…arrow_forward
- Rent'R Cars is a multisite car rental company in the city. It is trying out a new "return the car to the location most convenient for you" policy to improve customer service. But this means that the company has to constantly move cars around the city to maintain required levels of vehicle oveilebility. The supply and demand for economy cars, and the total cost of moving these vehicles between sites, ore shown below. From\To Supply |$14 |$14 |$13 $6 65 | 1e | 1e 40 18 16 150 Derand 68 se 45 70 255\255 a. Find the solution that minimizes moving costs using Microsoft Excel. (Leave no cells blank, whenever zero (0) Is required.) From/To D E G supply Candidate solution A Total Shipped Cost D E G Total Costsarrow_forwardRelative Market Share. Penetration Please show the solution and formula used. Tia Beauty Salon serves an approximate 1,200 customers annually. These are the breakdown of its customers: Teens - 500 Middle Age - 450 Senior Citizen - 250 All customers spend an average of Php500.00 per visit. Assuming the customers visit ABC Salon every 2 months, what is the projected annual market size for Beauty Salon? However, during the 3-month lockdown, salons are not allowed to operate. What is the projected loss in revenues for ABC Salon?arrow_forwardWhich of the following modes of transportation is the best in Loss and Damage? Select one: O 1. Air O 2. Truck O 3. Rail O 4. Sea O 5. Pipelinearrow_forward
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