Q=K^1/4 L^3/4 a.) Centralized generation refers to the large-scale generation of electricity at centralized facilities. Determine the utilization and the efficiency for each of these situations: a. A company produces an item. Explain why capacity is important. A loan processing operation that processes an average of 3 loans per day. During the month the company purchased and used 600 units of this material at a price of $2.25 per unit. Ford's famous response was "They [customers] can have any color they want as long as its black." Which of these is responsible for the movement of materials in the production process? Most companies make a capacity decision frequently. Explain. Insect, Mite, and Nematode Pests of Commercial Mushroom Production 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. Assume capital is not a fixed cost. 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. 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. Organizations have four approaches for capacity expansion. Because of scheduled maintenance of their equipment, management feels that only 2,500 pounds of clothes can be washed in Last year, Wei Guan Inc. had $350 million of sales, and it had $270 million of fixed assets that were used at 65 percent of capacity. It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. United Industries manufactures a number of products at its highly automated factory. The traditional method of product costing, where the costs of direct materials, direct labor, and factory overhead are included, is called [{Blank}] costing. Briefly describe three strategies for expanding capacity. By using overti, You would like to construct an aggregate production plan for product X341 for the next four quarters. What was their capacity utilization rate last month? A local bakery had a design capacity of 1,000 loaves per day, and an effective capacity of 700 loaves per day. A) There are more opportunities for advancement and promotion. d. fixed costs are low. 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. When fixed costs are high, one production facility will be favored. The longest task is 2.4 minutes, and the total time for all tasks is 18 minutes. Its effective capacity, however, is 64 repairs per day, and its actual output is 62 repairs per day. Given the information in the table, calculate the required capacity for this year' Analyze two or three (2-3) differences between design capacity and effective capacity, and then predict one or two (1-2) challenges that you may encounter when using each method. The wage rate in this area is w = $15, and the cost of capital is r = .05. a. Kees Bridal Fashions generally orders more dresses than it thinks it will sell so that it can handle an unexpected large volume of business, should it occur. Production Facilities means any storage, separation, treating, dehydration, artificial lift, power supply, compression, pumping, metering, monitoring, flowline, and other equipment directly associated with oil wells, gas wells or injection wells, prior to any processing plant or refinery. The normal production capacity for the Fabrication Department is 10,000, A firm combines labor (L) and capital (K) to produce output (Q). D) Price is equal to minimum average variable costs. Week 1 2 3 4 5 6 MP Southern Mfg., Inc., is currently operating at only 78 percent of fixed asset capacity. Can you provide an example why a business might not want to pursue global production? Centralized generation in the United States, Environmental impacts of centralized generation. Effective capacity = 100 units per day Design capacity = 120 units per day Utilization = 60% A) 93.75% B) 67.77% C) 80% D) 97.5% E) 72%. copyright 2003-2023 Homework.Study.com. The company has a lower specification limit of 23 mm and an upper specification limit of 23.6 mm. sinks per day ? Which of the following is a direct input into capacity requirements planning? Holding costs are $2.00 per unit per year. e. a company is extremely profitable. A. increasing production lowers the average cost of each unit produced B. increasing production increases the average cost of each unit produced C. decreasing production lowers the average cost of each unit produc, For the current period, Kayenta Company's manufacturing operations yield a $4,000 unfavorable price variance on its direct materials usage. For example, nuclear power generation produces radioactive waste, while coal ash can contain heavy metals like mercury. The extent to which products and services are delivered at low cost, Which company sets the price in the market place? A minor fender bender will cost $2,000, whereas a major accident might cost $16,000 in repairs. What can the Biologics Manufacturing Centre do? Part X requires machining on a milling machine (operations A and B are required). What is the measured capacity of the work center? Get access to this video and our entire Q&A library, Capacity & Facilities Planning: Definition & Objectives. Why? the effective capacity, however, is 700 boards per day. - research and development, is responsible for the acquisition of goods and services, is responsible for the transformation required by the production process, is responsible for the movement of materials in the production system, is responsible for the design of new products, determining which components and raw materials should be produced in-house and which components and raw materials should be acquired from suppliers; also called the sourcing decision, when a firm buys components and raw materials globally, - One advantages of buying is that the firm does not need to invest in the complete production process; global suppliers are selling to many companies in the same industry but in different countries, and achieve superior economies of scale and scope; sometimes global procurement is required as a result of a business practice known as offsets. c. goods have a low value-to-weight ratio. Related Diversification iv. What is the utilization rate? Access the answers to hundreds of Capacity planning questions that are explained in a way that's easy for you to understand. - One consideration for the one-versus-many production facilities decision is fixed costs. These facilities are usually located away from end-users and connected to a network of high-voltage transmission lines. You have two plants: one in CO and the other in SC. Q = A f (L, K) = 30L + 6L^2 - 0.10L^3 (a)Is this a short run or a long run production function? 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. B) A corporation that experiences successful growth is thought of positively by the marketplace and potential investors. - The best run companies usually have the best supply chain. What is the demonstrated capacity of the work center? A foreign wholesaler offers to purchase 2,000 scales at $15 each. a. Which of the following correctly describes "capacity"? How fast can sales grow before any new fixed assets are needed? C) below normal economic performance. Createyouraccount. Assuming the partners share income and losses in the ratio of one-third to Martin and two-thirds to Steven, how much cash will be distributed to each partner in liquidation? The production function for a productis given by Q=100KL. You also know that the wage rate for w, Depreciation on Abel Manufacturing Company's factory machinery is classified as which of the following? The standard cost and the actual cost of factory overhead for the pr. One of the reasons companies manufacture their products in China is because of the abundance of lower-wage workers available in the country. 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. With capacity requirements planning, the calculated workload for a work center is compared with {Blank}. entertainment, news presenter | 4.8K views, 28 likes, 13 loves, 80 comments, 2 shares, Facebook Watch Videos from GBN Grenada Broadcasting Network: GBN. Find the firm's short run cost function, if Ki is fixed at $100,000. a country has a comparative advantage in a good whose production is intensive in the factors that are abundantly available in that country; A company would locate the production facilities in these countries that offer the best comparative advantage, Goods with high value-to-weight ratios are expensive but do not weigh very much. chpt 13. A doctor's office charges no-show patients $30 if they do not cancel their appointment 24 hours prior to the appointment. A low price leader would typically have: higher initial engineering and design costs higher worker skills and complex scheduling flexible production and extra capacity high volume with little or no variation, standardized work. The total production capacity in CO and SC are respectively 250 and 400 units. The company's targets are high, and they are able to generate substantial profits. A station with three single machines operating in parallel with 20-minute processing times at each station. 3. Both products are produced on the same machining operation. 4. b. Allow access to data and information in real time What are some capacity measures for each of follow a. university b.hospital c.computer d.farm. 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. Explain the process of aggregate capacity planning in service businesses. hmoyes. \\ 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. What scale of production minimises the ray average costs? Henry Ford was once asked what colors the Model T would be available in. $ 262,000 $ 217,000 Q 108,500 lbs. 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. This strategy also changes the organizational structures of companies. A consumer would purchase electricity from a utility in their area, which would then provide the electricity through its own electricity delivery system. One production facility will usually be favored when a. a company is extremely profitable. 11one production facility will usually be favored - Course Hero When the capacity of an organization to produce goods or services and the demands of its customers to purchase goods or services is not matched, then the result is inefficiency, either in under-ut AlwaysRain Imgation Inc. would like to determine capacity requirements for the next four years. 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. A firm wants to minimize the total cost of producing 100 tons of dynamite. 5. chantyreys. - Another consideration is the notion of the minimum efficient scale and its comparison to demand. Unit cost is $55.75. A desk contributes $400 to profit, and a chair contributes $250. The Garden City Nursery Corporation currently has $40,000 in sales and is operating at 27% of full capacity. c) Large volumes of a product are manufactured. Over a period of 4 weeks, a work center produced 50, 45, 42, and 52 standard hours of work. Go ahead and submit it to our experts to be answered. What is the capacity of this system? If the standard deviation of the weighing scale is 0.02, is the process considered capable? The beer facility has a system efficiency of 90 percent, and the utilization is 80 percent. =___? a. A firm uses 1 capital for every 5 workers to produce 1 output. Explore capacities and facilities planning, the importance of planning, and a deeper look at facility planning. The Best Beer Corporation has a beer-processing facility in Columbus, Ohio. Chapter 13: Global Operations and Supply Chain Management - Quizlet
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