Airlines b. Suppose the firm can hire at a wage of $40 per hour and output can be sold at $10 per unit. 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. a. What are the mi For the next six months, Kurtz Company projects the following information (in units). - production d. fixed costs are low. The average monthly fixed cost per site is RM 25,500, while each unit cost RM 78 to produce and selling price is RM 180 per unit. 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. Most activities in operations management can be grouped into four business functions: - procurement July Aug. Sept. Oct. Nov. Dec. Retail demand 800 300 450 450 600 600 Dealer demand 600 750 900 1,050 1,200 1,3 How can firms make use of excess capacity? b. Deriv, A company makes a product at a constant cost of $70 per unit and sells the product at $100 per unit. Explain why or why not? The production budget for year 1 was based on 200,000 units of output. Reid will be driving through Spain this summer. Long-range capacity planning should be the responsibility of: a. analysts b. middle management c. top management d. marketing management. a. 2- If the product must be customized for different countries, then multiple facilities will be needed. Can your father do so? B. potential output and current output. JavaScript appears to be disabled on this computer. In a 4-week period, it actually worked 355 hours and produced 475 standard hours of work. The company, Materials + Workmanship + Design = Perception. In millions, by how much could Wei Guan's sales increase before For the next six months, Kurtz Company projects the following information (in units). Reduces overall product costs, Collections of computer hardware and software arranged to transmit information from one place to another, The linking of separate networks into an inter-connected network, where each network retains its own identity, Enterprise Resource Planning (ERP) Systems recently, the production facility has been producing A manufacturing shop is designed to operate most efficiently at an output of 860 units per day. Owner made no investments in the business, and no dividends were paid during the year. Explain the distinction, A cost minimizing firm has the following production function for its product. -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. True or false? e. a company is extremely profitable. - control over quality. A. lagging capacity behind demand B. building on shared experience C. fo One production facility will usually be favored when _______. A. How fast can sales grow before any new fixed assets are needed? Henry Ford was once asked what colors the Model T would be available in. A total of 2,000,000 shares of common stock may be issued under the charter of Aspin Corporation. Each machine requires two operators. Determine the utilization and the efficiency for each of these situations: A. Centralized generation requires transmission lines, which also use land. 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. ______ is responsible for the design of new products in the production process. Derive the cost-minimizing quantities of labor and capital. The company needs to raise $48,000,000,000 to expand its factory. Simplifies the production process 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. Does this production function exhibit diminishing returns t, Q=2K^{3/4}L^{1/4} Capital is fixed at 20 units. Based on 4 documents. The Best Beer Corporation has a beer-processing facility located in Columbus, Ohio. Centralized generation facilities include fossil-fuel-fired power plants, nuclear power plants, hydroelectric dams, wind farms, and more. d. fixed costs are low. Make a list of 10 to 20 use situations important to campus area restaurants. Companies that decentralize their manufacturing split their production processes into various locations or regions. The price of one unit of labor is 20 and the price of one unit of capital is 10. A cost minimizing firm has the following production function for its product. What. The FIRST basic step in ethical decision-making is to= define all the facts and circumstances 3. Identify the symbol and charge of the ions in this compound. Some impacts vary based on the energy resourcefor example, whether the power plant uses fossil fuel or a renewable resource. Provide a Ghanaian example each for the following grand strategies. d. the fi, Jabriel Corporation uses a standard cost system in which it applies manufacturing overhead (MOH) on the basis of direct labor- hours (DLH). Financial considerations such as transactions risk, translation risk, and economic risk, and government incentives are also important. e. goods have a low value-to-weight ratio. Discuss the major considerations related to developing capacity alternatives. The bank has 3 tellers and on average, it takes 2 minutes to service a customer. The following are the common characteristics of multinational corporations: 1. This strategy also changes the organizational structures of companies. E. expense center. A local bakery had a design capacity of 1,000 loaves per day, and an effective capacity of 700 loaves per day. $ 262,000 $ 217,000 Q 108,500 lbs. Ultimately that was Ford's undoing, and today's marketplace is no different. Founded by Neal Broffman and Elisa Gambino, One Production Place Films produces documentaries that challenge viewers to see the underlying truths too often obscured by notions of conventional wisdom. 4. comparative advantage according to factor endowments B) A corporation that experiences successful growth is thought of positively by the marketplace and potential investors. Under what conditions would Zona Co.'s subsidiary consider using a lagging Can you think of any ways in which a short-term shortage of production facilities of a manufacturer might be overcome? The Megabuck Hospital Corp. is to build a state-subsidized nursing home catering to homeless patients as well as high-income patients. c. has no impact on the unemployment rate. 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 corporation had the following assets and liabilities at the beginning and end of this year. 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. the integration and coordination of global supply chains would not be possible without information technologies such as the Internet and enterprise resource planning systems. - The best run companies usually have the best supply chain. The following set of jobs must be processed serially through a two-step system. Calculate the mass, in grams, of 0.824 moles of lead. From: Enhanced Recovery Methods for Heavy Oil and Tar Sands, 2009 2) How does capacity utilization influence the extent of entry barriers? Wrong answer is provided by testbank: When fixed costs are high, one production facility will be favored. The production function for a productis given by Q=100KL. _____ refers to the management of the direct resources that are involved in the production system of a business, Tipton Manufacturing is based in Lexington, Kentucky. d. is earning negative economic profit. Recent flashcard sets. 13 Quiz. a) Predatory pricing is easy to prove in a court of law. The demand for your backpacks follows a norm, The purchase price of capital is a. the value of the capital to the firm. You also know that the wage rate for w, Depreciation on Abel Manufacturing Company's factory machinery is classified as which of the following? (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. However, its effective capacity is 64 repairs per day, and its actual output is 62 repairs per day. (a) a company is extremely profitable (b) demand is higher than the minimum efficient scale (c) unemployment is very low (d) fixed. What was Dominy's first major in college and why did he drop out? All of these facilities operate around the clock. Which of the following would be one of his responsibilities? The extent to which customers are satisfied sufficiently to remain customers. Explain what capacity planning is and how you measure it. D) normal accounting performance. A) absorption B) break-even, 1.A profit-maximizing firm will base its decision to hire workers on the additional costs and benefits of each worker. All rooms operate around the clock. Last year, the company's estimated manufacturing overhead was $1,800,000 and its, For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $11. A firm produces three goods (x,y,z) in a fixed proportions (0.5,0.3,0.2). Part X requires machining on a milling machine (operations A and B are required). Allowances for which of these factors would be subtracted from design capacity when calculating effective capacity? - One consideration for the one-versus-many production facilities decision is fixed costs. You have two plants: one in CO and the other in SC. - any problems global businesses face are due to scandals regarding their products originated in substandard supply chains, because some companies in the supply chain could not trace back to suppliers the faulty components in the defective products. Holding costs are $2.00 per unit per year. Find the dimensions of the trough that give it maximum capacity. Process A uses one person to set up the job and do the copying. 6. Motor X sells for $2,500 and has an efficiency rating of 9 Amy Xia's plant is designed to produce 7,000 hammers per day but is limited to making 5,600 hammers per day because of the time needed to change equipment between styles of hammers. units produced) $65,000 Total b, A low price leader would typically have: a) higher initial engineering and design costs b) higher worker skills and complex scheduling c) flexible production and extra capacity d) high volume with little or no variation, standardized work, A firm produces output, y, by using capital k and labor L, according to the production function : y = k^a.L^b. Most companies make a capacity decision frequently. What design capacity would be needed to achieve an actual output of 11 Henderson Corporation has received a request for a special order of 8.500 units of product XYZ for $45.40 each. 1- If a product can serve all customers worldwide,then production facilities can be in one country. The MPK = 100L and MPL = 100K. Water used for steam production or cooling may be returned at warmer temperatures to water bodies and may contain contaminants. 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. b. identifying capacity gaps. A loan processing operation that processes an average of 6 loans per day. 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%? Blyrie Inc., a sports goods manufacturing company, follows a policy that involves manufacturing only when the demand exceeds the amount of goods already manufactured. 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. A value equal to the capacity. 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. Operations Management questions and answers. 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. Each cell has a design capacity of 250 units per day and an effective capacity of 230 units per day. b. fixed costs are high. 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. B any machine can be used if available ? The firm operate, A firm produces a product with labor and capital as inputs, with the production function Q = LK, Let w= 1 ad r=1 be the prices of labor and capital, respectively. All workers performing similar tasks are grouped together, and products pass from one workstation to another. Input purchase costs are lower due to economies of scale and lower costs achieved by global sellers of components, 1. 30% c. 20% d. 50%. The average daily demand for the products is: Corn Flakes: 995 CS. Explain the difference between the actual physical capacity of existing plants and potential GDP. Determine the term being described or defined by the following statement: The amount of production possible under ideal conditions with no time for maintenance, breakdowns, or absenteeism. Consider the following two mutually exclusive alternatives, related to an improvement project, and recommend which one should be implemented. - Another location consideration is the infrastructure that the country offers. Maximizes flexibility by allocating orders among the suppliers in a dynamic way The company's targets are high, and they are able to generate substantial profits. At present, your company only makes metal components. b. 4. copyright 2003-2023 Homework.Study.com. b. C. practical capacity. 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. Find the firm's short run cost function, if Ki is fixed at $10. Both products are produced on the same machining operation. b)are a function of the level of variable costs. A value equal to the demand. What are the inputs to CRP process? 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. A firm uses 1 capital for every 5 workers to produce 1 output. Determine the term being described or defined by the following statement: The difference between resources used and resources supplied. AssetsLiabilitiesBeginningoftheyear$60,000$20,000Endoftheyear105,00036,000\begin{matrix} d. the price r, A firm manufactures a product according to the production function: . The wage rate in this area is w = $15, and the cost of capital is r = .05. a. This means the firm is: a) producing less output than allocative efficiency requires. Concerns regarding the visibility of all aspects of supply chains and the traceability of materials along supply chains were focused upon. Secure .gov websites use HTTPS The King Company is producing two types of products: A and B. What are good basic ethics strategies for an organization to be productive? its costs are C(x,y,z) = 3200 + 0.4x + 0,2y + 8y^2 + 0.8z A) What scale of production minimizes the ray average costs? The partners decide to liquidate the partnership. 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.
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