True or false? a. Assume you own a small (US$15,000,000) manufacturing company that makes components for the automobile industry. The total production capacity in CO and SC are respectively 250 and 400 units. Two of these products were processed further. The concept of sizing your capacity throughout a process so that you smoothly and continually create your product or service at a rate consistent with customer demand is known as A community health system's nurse team consists of 12 nurses working in the local community. a. Assume that shortages. The firm employs six bookkeepers who cost the firm Pound 10,000 in total each week. Which one of the following factors usually motivates a smaller capacity cushion? e. goods have a low value-to-weight This problem has been solved! 4. Considering your company's stra Is the capacity of the bottlenck larger than, equal to, or smaller than the capacity of the process? d. service work is more interesting, Binegar Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). A surface production facility is the system in charge of the separation of the well stream fluids into their three single-phase componentsoil, gas, and waterand of their transport and processing into marketable products and/or their disposal in an environmentally acceptable manner. All rights reserved. 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. Its effective capacity, however, is 61 repairs per day, and its actual output is 59 repairs per day. True or False: International sourcing requires a shorter capacity planning time frame compared to domestic sourcing. Holding costs are $2.00 per unit per year. What is its utilization if it processes an average of 45 loans per day? 8. 5. Improving . Some water may also be lost to evaporation. The 'weights (Wi)' typically used in the numerator and denominator of the center-of-gravity computational method is: a) based on volumes. The company does not make the gears it uses in its products, it, purchases them from a supplier in Hong Kong. 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. OC) cell layout OD) job shop OE) work team. A. Monthly holding cost are 15%. sinks per day ? b. convenience for customers. 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? Which of the following is a direct input into capacity requirements planning? Mark Customers arrive at a bank at a rate of 50 per hour. The company needs to raise $48,000,000,000 to expand its factory. In the past month the plant averaged 690 units per day. d. None of the above. 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) Find the equation for the firm's, Suppose that you are in the short-run and the production function for your firm is given as: F(L,K)=K^1/2 L^1/2 Also, in the short-run capital is fixed at K=16. Identify the symbol and charge of the ions in this compound. Operate in a client-server environment, traditional or web-based, Simultaneously operates in multiple languages, Handles accounting standards of multiple countries, WGU_FVC1_Ch13_Global Operations and Supply-Ch, Chapter 10: The Organization of Globalization, AST109 Outermost Planets Uranus and Neptune (, Service Management: Operations, Strategy, and Information Technology, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Information Technology Project Management: Providing Measurable Organizational Value. Problem 5-1 Determine the utilization and the efficiency for each of these situations: a. the effective capacity, however, is 700 boards per day. Become a Study.com member to unlock this answer! - the firm may not be able to gain the economies of scale that can be gained by a large supplier (a) a company is extremely profitable (b) demand is higher than the minimum efficient scale (c) unemployment is very low (d) fixed. The firm can purchase all the capital and labor it wants at prices r and w, respective, A competitive firm has a production function described as follows. 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 kind of staffing approach is being used by Dubai? With capacity requirements planning, the calculated workload for a work center is compared with {Blank}. - When components and raw materials involve intellectual property, making affords complete protection of the intellectual property. Last year, 17,800 purc A company manufactures a product using machine cells. 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. During the month the company purchased and used 600 units of this material at a price of $2.25 per unit. One production facility will usually be favored when a. fixed costs are low. A computer repair service has a design capacity of 80 repairs per day. Go ahead and submit it to our experts to be answered. Related Diversification iv. Two things that are important to understand about this process include its definition and objectives. (b) Give an example. The MPK = 100L and MPL = 100K. Long-term capacity decisions that confront managers include all of the following except: a. workforce size b. capital c. equipment. In a start-to-start relationship, a 2-day lag implies that: A. the successor can start two days before the predecessor has started. Consider a four-step serial process with processing times given in the list below. E. expense center. All rights reserved. "Capacity planning is the most crucial decision taken by a manager". Execute all transactions related to the firm's business processes being integrated (round your answer to t A furniture company manufactures desks and chairs. Suppose the firm can hire at a wage of $40 per hour and output can be sold at $10 per unit. fixed costs are low. a. Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $____. 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. Determine the utilization and the efficiency for each of these situations: a. Which of the following is not one of them? b. demand is higher than the minimum efficient scale. What are good basic ethics strategies for an organization to be productive? 11.One production facility will usually be favored when a. b. demand is higher than the minimum efficient scale. A. A firm uses 1 capital for every 5 workers to produce 1 output. Maximizes flexibility by allocating orders among the suppliers in a dynamic way b. demand is higher than the minimum efficient scale. A total of 2,000,000 shares of common stock may be issued under the charter of Aspin Corporation. Currently two production lines are in place for making bronze and plastic sprinklers. Systematic capacity planning includes the following steps except: a. estimating future capacity requirements. - Another location consideration is the infrastructure that the country offers. Determine the net income earned or net loss incurred by the business during the year for each of the following separate cases: a. End of preview Want to read all 25 pages? Sets stage for offsets through direct procurement purchasing in and indirect support of local markets In a job shop, effective capacity is only 62 percent of design capacity, and actual capacity is 74 percent of effective output. b. Fill in the blank. What was their capacity utilization rate last month? A lock (LockA locked padlock) or https:// means youve safely connected to the .gov website. Production and sales were: - Weight Sales Additional processing costs P 317,000 lbs. A .gov website belongs to an official government organization in the United States. Given the following information, what would efficiency be? e. transportation costs. The wage rate in this area is w = $15, and the cost of capital is r = .05. a. Input purchase costs are lower due to economies of scale and lower costs achieved by global sellers of components, 1. 7. 1. Which of the following is not one of the ways in which a firm may pursue a learning curve steeper than the industry average? Finally, political considerations such as social stability, form of government and public attitudes toward foreign investment are all important in the location decision. The manager would like to What are normal capacity, practical capacity, and theoretical capacity? While most of its products are processed independently, a few are related. 12.The weighted average of different interest rates paid on long-term borrowings is . 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. Recent flashcard sets. How much capacity does the restaurant have on a weekly basis and an annual basis in hours? Each desk uses four units of wood, and each chair uses three units of wood. 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. b. innovation. United Industries manufactures a number of products at its highly automated factory. One production facility will usually be favored when _______. 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. 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. Currently, two production lines are in place for making bronze and plastic sprinklers. Three different 15-horsepower electric motors are being considered. Many companies partake in the process of capacity and facilities planning to meet a greater demand. Discuss the major considerations related to developing capacity alternatives. What. What did Dominy earn a master's degree in? Th, A certain company uses a single raw material in its production process. 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. Each machine requires two operators. The hours scheduled are 80, and 72 hours are actually worked. 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. W Cooper's Copy Shop is considering two different processes for completing copying jobs brought in by customers. entertainment, news presenter | 4.8K views, 28 likes, 13 loves, 80 comments, 2 shares, Facebook Watch Videos from GBN Grenada Broadcasting Network: GBN. The lowest rate of output per unit of time at which long-run average costs for a particular firm are at a minimum is ________. c. the price a person pays to own that factor of production indefinitely. 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. 3. The following standards for variable manufacturing overhead have been established for a company that makes only one product. Allocating production capacity to meet demand at a minimum cos, Flip had sales of $10,000 (100 units at $100 per). A loan processing operation that processes an average of 3 loans per day. How mu (a) What is the fundamental distinction between design capacity and effective capacity? 2. minimum efficient scale and it comparison to demand, as volume increases, unit costs decreases due to economies of scale Three sub-facilities are used 1) How does capacity utilization influence the intensity of rivalry? a. A production system in which goods dominate the value of the product Students also viewed. 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. - a firm could increase the complexity of its production process the integration and coordination of global supply chains would not be possible without information technologies such as the Internet and enterprise resource planning systems. 7. financial considerations Explain how a restaurant could use this information in attempting to appeal to the student market. B any machine can be used if available ? Production cost: $1 per item Hourly holding cost: $0.10 per item Set-up cost: $270. Th, A firm has a production function given by Q=10K^{0.25}L^{0.25}. - In-house production is sometimes the only option for components and raw materials that are highly specialized, particularly as a matter of trust d. additional land. b. tends to increase the unemployment rate.