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Water used for steam production or cooling may be returned at warmer temperatures to water bodies and may contain contaminants. 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? 8. political considerations, Considerations for location of facilities for products, 1. if product can serve the needs of all customers around the world all production facilities can be in one country, if product has to be customize then multiple production facilities will be needed Explain what capacity planning is and how you measure it. Yesterday the clinic was open for 9 hours and treated 758 patients. Browse through all study tools. Buying from suppliers could unintentionally lead to suppliers becoming competitors. Q = A f (1, K) = 30L + 6L^2 - 0.10L^3 (a) Is this a short run or a long run production function? The times at each process are in hours. Step 1: 26 minutes per unit An assembly line with 17 tasks is to be balanced. C) Price is below minimum average total costs. The company did not maintain any inventories, so total cos, Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a kanban/lean production approach. 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. c) Large volumes of a product are manufactured. In an economy experiencing growing production capacity: a) depreciation is greater than gross private domestic investment. China's business ecosystem of networked suppliers,. - production The standard cost and the actual cost of factory overhead for the pr. Market Penetration iii. The Best Beer Corporation has a beer-processing facility located in Columbus, Ohio. (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. In light of the statement, explain why capacity planning decision is important. Cost of regular production = 60 $/u Cost of overtime production = 90 $/u Inventory holding cost =, A company uses a standard costing system. Currently, the company's fixed assets are operating at 90% of capacity. 2- If the product must be customized for different countries, then multiple facilities will be needed. Job costing b. Will the company be able to raise the required funds without additional authorization, based on the information provided and your conclusion in the preceding section? The following diagram shows a 4-step process that begins with operation 1 and ends with Operation 4. Th, A firm has a production function given by Q=10K^{0.25}L^{0.25}. 5. infrastructure that the country offers ie seaports, airports, roads, electricity, and water access 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, suppliers > inputs > production process > outputs > customers, goods and services that integrate a product, the management of the direct resources that are involved in the production system of a business organization, 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. In small countries, or in municipalities where landfills are full and . The majority of electricity generation in the United States today is coordinated by regional system operators to ensure reliability. A manufacturing plant costs approximately $500 million to construct and requires a highly skilled work force. B. potential output and current output. 3. value-to-weight ratio, goods with high value-to-weight ratios are expensive but do not weigh very much The company's targets are high, and they are able to generate substantial profits. The following standards for variable manufacturing overhead have been established for a company that makes only one product. True or false? 4. The firm employs six bookkeepers who cost the firm Pound 10,000 in total each week. An adjustable-rate mortgage contract should specify what? 0.6667 c Zytel Corporation produces cleaning compounds and solutions for industrial and household use. d. the pri A hospital has 30 labor rooms, 15 combination labor and delivery rooms, 3 delivery rooms, and 1 special delivery room reserved for complicated births. Alter Bridge Mfg., Inc., is currently operating at only 88 percent of fixed asset capacity. b) gross private domestic investment is greater than depreciation. Product A visits machines 1, 2, and 4. The Best Beer Corporation has a beer-processing facility located in Columbus, Ohio. 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. What is its expected output per week? Provide a Ghanaian example each for the following grand strategies. Become a Study.com member to unlock this answer! True or False: International sourcing requires a shorter capacity planning time frame compared to domestic sourcing. Operations Management questions and answers. Reduces product cycle times Some impacts vary based on the energy resourcefor example, whether the power plant uses fossil fuel or a renewable resource. Each desk uses four units of wood, and each chair uses three units of wood. If you were one of 10 new workers the firm was about to hire, would you prefer to be paid the value of your average prod, The Chase Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard machine-hours. Assume that shortages. sinks per day ? The firm is currently producing 52 units of output, marginal cost is $17, average total cost is $15 and average va, If a competitive firm is selling 1,000 units of its product at a price of $9 per unit and earning a positive profit, then: a. its total cost is less than $9,000. 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 How reliable is the delivery? a. However, it has an absolute maximum output capability of 30,000 units per month, and can produce as li. 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. The average safety capacity of Scorla Corp. is ____. Horizontal Integration v. Forward Integration. What is this rate equivalent to in U.S. dollars per gallon? Your father, who grew up in the home, wants to take out life insurance on your grandfather to pay off the mortgage rather than let the loan company take the property when your grandfather dies. Three sub-facilities On a given Dallas-Newark flight, there are 220 seats. In a job shop, effective capacity is only 45 percent of design capacity, and actual output is 63 percent of effective output. Over a period of 4 weeks, a work center produced 50, 45, 42, and 52 standard hours of work. 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].. End of preview Want to read all 25 pages? The [{Blank}] is the maximum capacity at which a facility can run under ideal conditions. In the past month the plant averaged 690 units per day. A. A firm uses 1 capital for every 5 workers to produce 1 output. Ford's famous response was "They [customers] can have any color they want as long as its black." One production facility will usually be favored when _______. If the cost-capacity exponent is 0.14, what would be the expected cost of a 440-MGD syst Where a firm locates would typically not affect that firm's: a. costs. Ultimately that was Ford's undoing, and today's marketplace is no different. Frosted Flak Is the Facilities plan ever completed for an enterprise/company/business? 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. - Another consideration is the notion of the minimum efficient scale and its comparison to demand. Improving . Two of these products were processed further. 2. control over quality Find the firm's short run cost function, if Ki is fixed at $100,000. What is the demonstrated capacity of the work center? Secure .gov websites use HTTPS Making components in-house also allows the company more control over deliveries 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. - represent each business function by a module (accounting module, finance, operations, HR, Marketing) B. production of the 100th unit, For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $7. By using overti, You would like to construct an aggregate production plan for product X341 for the next four quarters. The standard price for a unit of material is $2.00. (round your answer to t A furniture company manufactures desks and chairs. 2. may not have the incentive to improve their product since they do not face the competition Capacity planning applies only to manufacturing companies. 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. 2a- Proximity to customer markets, suppliers, Gross margin. 1. a. 7. A) Unevenly distributed demands B) Requests for quick customer services C) High penalty costs for overtime usage D) Large, infrequent jumps in capacity are characteristic of companies that: A) have an expansionist strategy B) have a wait-and-see strategy C) have high utilization D) have low utilization. A shift is 8 hours long, and the average patient requires 20 minutes in the exam room. A desk contributes $400 to profit, and a chair contributes $250. In a job shop, effective capacity is only 62 percent of design capacity, and actual capacity is 74 percent of effective output. Three sub-facilities are used 1) How does capacity utilization influence the intensity of rivalry? Input purchase costs are lower due to economies of scale and lower costs achieved by global sellers of components, 1. product (or assembly-line) layout This caught the attention of many global companies due to safety risks in their products. Mushroom production represents one of the best examples in agriculture where pests can be controlled without the use of chemicals. a. Store each piece of data only once in an enterprise-wide database 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. Twisted nitinol-wire eyeglass framed unbend at room temperatures. Multinational Corporation (MNC) - Overview, Characteristics, Advantages 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. True or false? Insect, Mite, and Nematode Pests of Commercial Mushroom Production C. 8 percent. Does this production function exhibit diminishing returns t, Q=2K^{3/4}L^{1/4} Capital is fixed at 20 units. 12.The weighted average of different interest rates paid on long-term borrowings is . b. tends to increase the unemployment rate. - When components and raw materials involve intellectual property, making affords complete protection of the intellectual property.