Q&A Hero

Question

Sheet Metal Mill Solution
Weighted # trips x-coord y-coord X multiplied Y multiplied
Rayburn 20. 130. 380. 2,470.
Zavalla 3. 60. 40. 180. 120.
Henderson 5. 70. 100. 350. 500.
Wax MIlls 6. 90. 30. 540. 180.
Total 33. 240. 300. 1,450. 3,270.
Average 60. 75.
Weighted Average 43.9394. 99.0909.

Key Term: Center-of-gravity method

40) A small producer of music boxes wants to move to a larger facility. Two alternative facilities have been found. Site 1 has a fixed cost of $500,000 per year, with a variable cost of $25 per unit. Site 2 has a fixed cost of $800,000 per year, but a variable cost of $22 per unit.

a. Write out the equation for total cost for each site.

b. At what volume of output would the two locations have the same total cost?

c. For what range of output would Site 1 be superior?

d. For what range of output would Site 2 be superior?

Answer: (a) The equation for the total cost at site 1 is TC = 500,000 + 25X, where X is volume. The equation for total cost at Site 2 is TC = 800,000 + 22X. (b) Set these two equations equal and solve for X. 500,000 + 25X = 800,000 + 22X leads to 300,000 = 3X, then to X = 100,000. (c) Site 1 is preferred for volumes up to 100,000 units, and (d) site 2 is preferred above 100,000 units.

Key Term: Locational cost-volume analysis

41) A small manufacturer is considering several locations for a new facility. They have identified four factors that they consider to be important for their location decision. They have decided to assign scores to the four factors, with a higher score indicating a more favorable location. Use the information in the following table to perform a factor rating to select the best location.


Weight Location A Location B Location C
Wages 40 30 75 90
Labor Climate 30 40 70 40
Taxes 15 80 40 90
Utilities 15 75 60 10

Answer: Location B is the preferred location.

Answer

This answer is hidden. It contains 0 characters.

Related questions

Q: A company is deciding if it should design an advertising system for use on Twitter. The first option is to skip out on designing, with no net costs or gains. The second option is System A, which would result in additional sales of either $50,000 under good conditions or $10,000 under bad conditions. The final choice is System B, which would increase sales by $20,000 under both good and bad conditions. Suppose that good conditions are twice as likely as bad conditions. Which option should the company pursue if developing a system costs $25,000?
Q: The tracking signal is the: A) standard error of the estimate. B) absolute deviation of the last period's forecast. C) MAD. D) ratio of cumulative error / MAD. E) MAPE.
Q: Porter's Five Forces Model contains which of the following? A) immediate rivals B) potential entrants C) customers D) suppliers E) all of the above
Q: Provide an example of an organization that achieves competitive advantage through experience differentiation. Explain.
Q: Service organizations can immerse the consumer in the service, or have the consumer become a participant in the service, as they practice ________.
Q: Production processes are being dispersed to take advantage of national differences in labor costs.
Q: Consumer's risk is the probability of: A) accepting a good lot. B) rejecting a good lot. C) rejecting a bad lot. D) accepting a bad lot. E) none of the above
Q: The probability of rejecting a good lot is known as consumer's risk.
Q: Because most services cannot be inventoried, there is little place for JIT to help service organizations achieve competitive advantage.
Q: Lean operations are known for their: A) employee development. B) supplier education. C) supplier partnerships. D) challenging jobs. E) All of the above are attributes of lean operations.
Q: Wheeled Coach uses ________ as the catalyst for low inventory, high quality, tight schedules, and accurate records.
Q: Demand for a given item is said to be dependent if: A) it originates from the external customer. B) there is a deep bill of material. C) the finished products are mostly services (rather than goods). D) there is a clearly identifiable parent. E) the item has several children.
Q: Industries in which revenue management techniques are easiest to apply are those where: A) use tends to be predictable, and pricing tends to be fixed. B) use tends to be predictable, and pricing tends to be variable. C) use tends to be uncertain, and pricing tends to be fixed. D) use tends to be uncertain, and pricing tends to be variable. E) All of the above, i.e., there is no difference.
Q: Designing distribution networks to meet customer expectations suggests three criteria: (1) rapid response, (2) cost, and (3) service.
Q: Cross-sourcing describes the practice of having two suppliers provide every component.
Q: Use of a diversified supply base represents one of the most common supply chain risk reduction tactics for several different supply chain risk categories.
Q: ________ rely on a variety of supplier relationships to provide services on demand.
Q: Which of the following is not a limitation of job expansion? A) higher capital cost B) higher wage rates C) smaller labor pool D) higher training costs E) All of the above are limitations of job expansion.
Q: When a worker obtains clear and timely information about his/her performance, his/her job includes which of the following characteristics? A) feedback B) skill variety C) job identity D) job significance E) autonomy
Q: Which of Hackman and Oldham's five job characteristics refers to providing a worker a say in the work methods that he/she wishes to utilize? A) skill variety B) job identity C) job significance D) feedback E) autonomy
Q: Profit-sharing is a motivation and incentive system where executives receive stock options.
Q: The primary purpose of the mean absolute deviation (MAD) in forecasting is to: A) estimate the trend line. B) eliminate forecast errors. C) measure forecast accuracy. D) seasonally adjust the forecast. E) remove random variations.
Q: Which of the following is NOT a key benefit of MRP? A) increased quality B) better response to customer orders C) faster response to market changes D) improved utilization of facilities and labor E) reduced inventory levels
Q: Demand for a given item is said to be dependent if: A) it originates from the external customer. B) there is a deep bill of material. C) the finished products are mostly services (rather than goods). D) there is a clearly identifiable parent. E) the item has several children.
Q: The aggregate planning process usually includes dispatching of individual jobs.
Q: What is the primary management challenge when implementing revenue management?
Q: Weight Day Package 1 Package 2 Package 3 Package 4 Monday 23 22 23 24 Tuesday 23 21 19 21 Wednesday 20 19 20 21 Thursday 18 19 20 19 Friday 18 20 22 20 (a) If he sets an upper control limit of 21 and a lower control limit of 19 around the target value of twenty ounces, the control chart is based on what value of z? (b) With the UCL and LCL of part a, what do you conclude about this processis it in control? Answer:
Q: What is the difference between natural and assignable causes of variation?
Q: What are the three possible results (or findings) from the use of control charts?
Q: An assembly line has 10 stations with times of 1, 2, 3, 4, , 10, respectively. What is the bottleneck time? A) 18.18% of the throughput time B) 100% of the throughput time C) 550% of the throughput time D) 50% of the throughput time E) 1.82% of the throughput time

Subjects

Accounting Anthropology Archaeology Art History Banking Biology & Life Science Business Business Communication Business Development Business Ethics Business Law Chemistry Communication Computer Science Counseling Criminal Law Curriculum & Instruction Design Earth Science Economic Education Engineering Finance History & Theory Humanities Human Resource International Business Investments & Securities Journalism Law Management Marketing Medicine Medicine & Health Science Nursing Philosophy Physic Psychology Real Estate Science Social Science Sociology Special Education Speech Visual Arts