The machine can pack 500 units on $200 cost. Related Diversification iv. The Garden City Nursery Corporation currently has $40,000 in sales and is operating at 27% of full capacity. What are some of the pros and cons of pursuing identified community needs as part of a strategic planning process? A study undertaken by the materials management dep Materials used by the Truck Division of Armstrong Motors are currently purchased from outside suppliers at a cost of $339 per unit. 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. 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. copyright 2003-2023 Homework.Study.com. and services in-house, All activities associated with the flow and transformation of goods and services from the raw material stage to the end user, together with the corresponding flows of monetary funds and information Explain why or why not? If capacity is set at 25 million tons, how much of a capacity cushion is there? b) based on distances. Finally, political considerations such as social stability, form of government and public attitudes toward foreign investment are all important in the location decision. Assume you own a small (US$15,000,000) manufacturing company that makes components for the automobile industry. A firm wants to minimize the total cost of producing 100 tons of dynamite. The second resource What happens if a population overshoots its carrying capacity? Item B is a component part of Item A which is a finished product ready for retail sales. It is usually a good idea to keep capacity planning separate from product and service design so that the issues in each area don't become intertwined. One production facility will usually be favored when _______. The actual output is 36 engines per day. its costs are C(x,y,z) = 3200 + 0.4x + 0,2y + 8y^2 + 0.8z . Procuring goods and services from suppliers carries the risk of those suppliers providing the same goods and services to direct competitors, When a firm has been making goods and services in-house, and then decides to buy these goods and services from suppliers, When the firm doing the outsourcing and the supplier that will provide the outsourced goods and services are located in the same country, When the firm doing the out-sourcing and the supplier that will provide the out-sourced goods and services are located in different countries, firm only focuses on product design and outsource all other production process functions, 1. cost and efficiency After the partnership has been operating for a year, the Capital accounts of Martin and Steven are $15,000 and$10,000, respectively. There are about half a million guests [{Blank}] is the percent of design capacity a facility is actually expected to maintain. b. the average produc, Sholette Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $5.00 per MH. Two of these products were processed further. The amount and type of emissions will vary by fuel burned and other plant characteristics. Production facilities refer to those spaces that contain equipment and buildings that are used by the organization to carry out their production process to produce finished goods. 5. infrastructure that the country offers ie seaports, airports, roads, electricity, and water access - The best run companies usually have the best supply chain. 2) How does capacity utilization influence the extent of entry barriers? 11one production facility will usually be favored - Course Hero These facilities are usually located away from end-users and connected to a network of high-voltage transmission lines. MQM 385 Elango Exam 3 Chapter 7,9,12 - Chegg The rate of inflation in the economy over that year period is which of the following? 3. may not be able to gain the economies of scale that can be gained by a supplier that is able to pool the activity of a large number of firms Hotels c. Cruise lines d. All of the above. In an 11 week period, a work center produces 1050 standard hours of work. Th, A firm has a production function given by Q=10K^{0.25}L^{0.25}. Centralized generation facilities in the United States currently have the capacity to generate more than 1,100 gigawatts of electric power. What is the design ut Tom Swift, master scheduler at Curry Manufacturing Company, prepared the following master production schedule for one of the firm's major end products, the Kashmir Spice Pump. Provide one example of this importance in a health services environment to support your argument. Which model would describe your behavior? Its effective capacity, however, is 64 repairs per day, and its actual output is 62 repairs per day. Please click here to see any active alerts. Each backpack has a gross profit of $40, a holding cost of $10, and a shortage cost of $15. In light of the statement, explain why capacity planning decision is important. The cost of an aerobic digester system with a capacity of 140 million gallons per day (MGD) is $2.1 million. Problem 5-1 Determine the utilization and the efficiency for each of these situations: a. The company does not make the gears it uses in its products, it, purchases them from a supplier in Hong Kong. 6. complete protection of intellectual property, 1. requires the expertise in the production of the component or raw material Gross margin. Go ahead and submit it to our experts to be answered. The process currently is: a) Capacity constrained b) Demand constrained c) Unconstrained d) Linearly constrained. After the incineration process is complete, the total mass of the remaining garbage can be reduced by up to 85 percent, while its volume may shrink by as much as 95 percent [5].. B. Get access to this video and our entire Q&A library, Capacity & Facilities Planning: Definition & Objectives. The price of output is $75, the wage rate is $8, and the rental rate for capital is $2 per unit. Suppose that the president has decided to increase government spending by building more libraries. A) Accounts payable and accruals are tied directly to sales. View an interactive version of this diagram >>. D) Price is equal to minimum average variable costs. \\ b) A c Material delays have routinely limited production of household sinks to 480 units per day. Identify four potential unethical actions or inactions related to capacity planning, and the ethical principle each violates. & \text{Assets} & \text{Liabilities }\\ 6. Consider various definitions of capacity, such as theoretical, practical, normal, and actual capacity. In the past month the plant averaged 690 units per day. The office equipment is sold for only $4,000. True or False: Adding facilities and long lead time equipment are examples of modifying capacity in the short-range planning. 2. minimum efficient scale and it comparison to demand, as volume increases, unit costs decreases due to economies of scale Expert Answer when the Centralized generation in the United States, Environmental impacts of centralized generation. Explore capacities and facilities planning, the importance of planning, and a deeper look at facility planning. The company has determined that it wants to have safet A firm wishes to determine the efficiency and utilization of a work center composed of 5 machines each working 16 hours per day for 5 days a week. The beer facility has a system efficiency of 90 percent, and the utilization is 80 percent. Find the dimensions of the trough that give it maximum capacity. Consider the following product structure: If the demand for product A is 50 units, how many units of component E will be needed A) 100 B) 250 C) 300 D) 4 E) 200, Scorla Corp. is an apparel manufacturing factory. d. unemployment is very low. A. direct materials cost B. direct labor cost C. manufacturing overhead cost D. period cost, Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. By using overti, You would like to construct an aggregate production plan for product X341 for the next four quarters. The idea behind preventive maintenance is that the worst condition a machine should ever be in is on the day it is purchased. Its effective capacity, however, is 61 repairs per day, and its actual output is 59 repairs per day. Your grandfather is retired and has taken out a large mortgage against his home to support his lifestyle. Assume also that the marginal physical product of the last unit of capital is 3, If there are external costs of production and firms do not have to account for these costs, then the firms will _______ and _______ compared with the efficient values. 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. Some water may also be lost to evaporation. What are the disadvantages? The vast majority of the electricity that Americans use is from centralized generation. The company has an annual production rate of 292,000 units. Discuss the challenges that company management faces with defining and managing capacity. What is the ut Jill has heard that in order to improve the reliability of her supply chain that she should add a capacity cushion. - Another consideration is the notion of the minimum efficient scale and its comparison to demand. At present, your company only makes metal components. The firm employs six bookkeepers who cost the firm Pound 10,000 in total each week. The amount of production possible under normal working conditions, including planned downtime and scheduled vacations, is called: A. actual capacity. The environmental impacts of electricity generation can contribute to large-scale regional environmental concerns as well as localized concerns that affect the area directly surrounding a power plant. Johnson's Barbecue hut has the following December 31, 2011 balance What is the expected output for a plant with a design capacity of 108 chairs per day, if its effective capacity is 90 chairs and its efficiency is 90%? The demand at the warehouses located in CA, TX, and OH are resp A company making tires for bikes is concerned about the exact width of their cyclocross tires. Most activities in operations management can be grouped into four business functions: - procurement The wage rate w = 4 and the rental price of capital r = 4 are taken as parameters (fixed) by the f. A manufacturing company supplies its bricks to industrial job sites. 13 Quiz. Can your father do so? b. aggregate supply of goods is likely to remain constant. Time spent Ted is a manager at the strategic business unit level of his organization. A) design capacity B) effective capacity C) optimal capacity D) supply capacity. In a job shop, effective capacity is only 62 percent of design capacity, and actual capacity is 74 percent of effective output. Risk of relying upon suppliers on important production process dimensions such as quality, delivery, and cost Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $____. Production and sales were: - Weight Sales Additional processing costs P 317,000 lbs. If the price of capital is $120 per day and the price of labor is $30 per day, what is the minimum cost of producing 1000 units of output? False. A person of integrity has two essential characteristics: (1) knowledge about what morally constitutes the right thing to do and (2) _____ the courage to do what is right. Its income statement and division of costs for 2014 are given in the following table. Practical capacity | A computer repair service has a design capacity of 80 repairs per day. e. a company is extremely profitable. The firm is a price taker and the market price of the product is $14. Below are the transaction records for eight weeks to item. What would be your expectations of the difference between the total cost (i.e., inventory holding costs + setup/ordering co, Wert Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. C) A large and growth-oriented corporation has more clout and influence. The Megabuck Hospital Corp. is to build a state-subsidized nursing home catering to homeless patients as well as high-income patients. (x4x)dx. Why? Setup cost is $200.00. |Number. b)are a function of the level of variable costs. c. Finance. Reduces product cycle times b) An incumbent firm may experience a learning curve that allows it to produce at a lower cos ABC Cleaners' washing machines have a design capacity of 2,900 pounds a day. Allow access to data and information in real time As an end-to-end biomanufacturing facility, the Biologics Manufacturing Centre has the capacity to complete the entire vaccine production process - from producing the antigen that causes an immune response, to filling vials and getting them ready for shipping to their final destination. d. strategy. The production process may consist of one or more transformations which could be all of the following: a. An unused unit of product has a salvage value of $50. B. normal capacity. Explain the distinction, A cost minimizing firm has the following production function for its product. Rio Tinto: Positive 2023 Start (OTCMKTS:RTNTF) | Seeking Alpha True or false? This situation exemplifies overpayment inequ Capacity requirements planning helps managers reconcile [{Blank}] with [{Blank}]. How well can customers have needs satisfied? a) The firm is currently producing 100 units of output. State true or false and justify your answer: For a food-processing plant such as Kraft Foods, capacity refers to the number of employees working on an assembly line. 8. A loan processing operation that processes an average of 7 loans per day. D) A growing firm can cover up mistakes and inefficiencies because of the increase in . As an alternative to landfills, incineration offers the following advantages: #1 Far more efficient use of space. What should be the properties of the combination of chemicals and labor that minimizes production costs? Decreases customer response times b. It follows that the: A. production of the 100th unit of output increases the firm's profit by $1. To increase $693,000 in Write the formula for lead(II) chlorite. During the month the company purchased and used 600 units of this material at a price of $2.25 per unit. What about eCommerce? c. demand is higher than the minimum efficient scale. Burning certain fuels results in solid waste such as ash, which must be stored and eventually disposed of properly. For example, nuclear power generation produces radioactive waste, while coal ash can contain heavy metals like mercury. Therefore, the electricity delivered to consumers by their local electric utility may be generated at a centralized power plant located in another city or state and owned by a different company. A forecasted increase in mental prices has encouraged the Delta Resource Company to consider the expansion of the capacity in one of its open pit mine operations in Nothern Ontario. Explain. a.microchips b.HD televisions c.petroleum d.pickup trucks. A standard work year is 2000 hours at the Luther Mill and it takes about an hour and a half to fill a customer order. b. Deriv, A company makes a product at a constant cost of $70 per unit and sells the product at $100 per unit. chantyreys. A. $148,148 B. Maximizes flexibility by allocating orders among the suppliers in a dynamic way Increases accountability for product quality and process controls Many companies partake in the process of capacity and facilities planning to meet a greater demand. Argue why capacity analysis is important in a health services environment. C. standard cost center. Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. -considered a global supply chain if locations in more than one country, The management of all activities in the supply chain, in order to minimize the total cost of the supply chain, and to maximize the value of the product to the end user. Marketing. Systematic capacity planning includes the following steps except: a. estimating future capacity requirements. A) There are more opportunities for advancement and promotion. Spicemas Launch 28th April, 2023 - Facebook The consumer price index in an economy is 180 one year and 189 the next year. Three sub-facilities On a given Dallas-Newark flight, there are 220 seats. (a) a company is extremely profitable (b) demand is higher than the minimum efficient scale (c) unemployment is very low (d) fixed. The lowest rate of output per unit of time at which long-run average costs for a particular firm are at a minimum is ________. The line will operate for 450 minutes per day. \\ A) available capacity B) calculated workloads for other work centers C) the cost of exp Stating capacity in dollar amounts generally results in a consistent measure of capacity. A. lagging capacity behind demand B. building on shared experience C. fo One production facility will usually be favored when _______. 3- Location of the production facility can affect the customer's image of the product's tangible and intangible qualities. In an economy experiencing growing production capacity: a) depreciation is greater than gross private domestic investment. Consider a customer service representative who contributes more inputs to his job than his referent, but who receives the same outcomes as his referent. 2. The following standards for variable manufacturing overhead have been established for a company that makes only one product. OC) cell layout OD) job shop OE) work team. Long-range capacity planning should be the responsibility of: a. analysts b. middle management c. top management d. marketing management. 2. may not have the incentive to improve their product since they do not face the competition 1- If a product can serve all customers worldwide,then production facilities can be in one country. Processing time per container is 0.1 days. Its average resource utilization per year is calculated as 70%. 2. b. 0.7500 b. 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. 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. If storing products in a warehouse is generally considered negative since it reduces profits by increasing inventory carrying costs, why is the number and size of warehouses increasing in the United States? d. 1.00. Mark Customers arrive at a bank at a rate of 50 per hour. Can't find the question you're looking for? All other trademarks and copyrights are the property of their respective owners. If the standard deviation of the weighing scale is 0.02, is the process considered capable? The standard cost and the actual cost of factory overhead for the pr. d. a company is extremely profitable. What is the capacity of this system? Consider a four-step serial process with the number of workers at each step and processing times given in the list below. Production averages 100 units per day, while demand is 40 units per day. Briefly compare. Blue Springs is a company that produces bottled water. b. 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. d. None of the above. 2. Monthly holding cost are 15%. Which of the following would be one of his responsibilities? 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. The capacity of the production system defines a firm's competitive boundaries. The MPK = 100L and MPL = 100K. The cost per unit of labor is w = 6 and the price per unit of output, Hourly demand: 70 items Maximum production rate: (850/3) items/hr. Using appropriate strategy framework(s) to graphically represent your answer and support your detailed argument: Carry out an Industry Analysis of the retail food sector in South Africa. It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Decision . Under what conditions would Zona Co.'s subsidiary consider using a leading strategy to reduce transaction exposure? At present, actual output averages 200. The process of assessing a company's ability to produce enough output to satisfy market demand is called capacity planning. Which of these is responsible for the movement of - Course Hero - Another consideration is the notion of the minimum efficient scale and its comparison to demand. Find the firm's short run cost function, if Ki is fixed at $10. c. is earning zero accounting profit. A firm produces three goods (x,y,z) in a fixed proportions (0.5,0.3,0.2). For November, the company's flexible budget for manu, Suppose that a firm's production function is : Q=4K^{1/2}L^{1/2} The cost of a unit of labor is $5 and the cost of a unit of capital is $20. c. delivery times. Consider a four-step serial process with processing times given in the list below. fixed costs are low. b. demand is higher than the minimum efficient scale. c. goods have a low value-to-weight ratio. The hours scheduled are 80, and 72 hours are actually worked. Job costing b. Quiz2-Prepare9.docx - 9. Of the following, which is NOT an Determine the utilization and the efficiency for each of these situations: a. Demand for the product is random, with a norm, A very low production volumes, it is likely that: a. the variable cost will form a major portion of the total cost. What are some capacity measures for each of follow a. university b.hospital c.computer d.farm. - logistics Briefly describe three strategies for expanding capacity. (a) a company is extremely Production systems with customized outputs typically have relatively: a. high volumes of output b. low unit costs c. fast work movement d. skilled workers, The short-run production function of a profit maximizer firm is given by f(L) = 6L^{2/3} , where L is the amount of labor it uses. What is its expected output per week? collection of computer hardware and software arranged to transmit information from one place to another, the linking of separate networks into an interconnected network, where each network retains its own identity, Enterprise resource planning (ERP) systems, software packages designed to integrate the majority of a firm's business processes, execute all transactions related to the firm's business processes being integrated, store each piece of data only once in an enterprise-wide database, allow access to data and information in real time, and operate in a client-server environment, traditional or web-based, - store all info in a single database B. potential output and current output. 12.The weighted average of different interest rates paid on long-term borrowings is . C. practical capacity. Large power plants require space for their operations. 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? Share sensitive information only on official, secure websites. c. There is no maximum utilization. Opportunities exist to improve the energy efficiency of power plants, as well as to locate electricity generation closer to end-users to reduce losses during electricity delivery. 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. component production facilities and raw materials are important considerations. One production facility will usually be favored when a. a company is extremely profitable. 1. At 24 years old Dominy helped build, 1. Owner made no investments in the business, but dividends were $1,250 cash per month. What is its utilization if it processes an average of 45 loans per day? What scale of production minimises ray average costs if. Fixed costs of production in the short run a) cannot be reduced by producing less output. b) gross private domestic investment is greater than depreciation. True or false? If dema How to find the Max capacity of a process? The amount of production possible under normal working conditions, including planned downtime and scheduled vacations, is called: A. actual capacity. If the plant efficiency is 75?%, then its effective capacity? One production facility will usually be favored when _______. d. additional land. 5. incur both fixed and variable costs, determining if the making will be done at one or more production facilities and if these facilities should be located in one or more countries, Considerations for Location of production facilities for components and raw materials, 1. when fixed cast are high one production facility will be favored This is an example of ______. chapter 13 Flashcards | Quizlet - the firm may not be able to gain the economies of scale that can be gained by a large supplier Fill in the blank. Managers use capacity planning to [{Blank}] . Chapter 14 Global Production, Outsourcing, and Logistics - Studylib
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