b. What can the Biologics Manufacturing Centre do? The effective capacity of a system is only 60% of its design capacity and its actual output is 80 units a day. What are the disadvantages? Improving . A firm produces three goods (x,y,z) in a fixed proportions (0.5,0.3,0.2). Each unit requires two standard hours of manufacturing labour for completion. When evaluating a firm with excess capacity, what is true? In a job shop, effective capacity is only 48 percent of design capacity, and actual output is 47 percent of effective output. 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. 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. Current sales are $640,000. 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). copyright 2003-2023 Homework.Study.com. Decreases customer response times Choose the best answer below to complete the statement: A company's records indicate that it took 500 minutes to produce 1000 units of one of its products. Long-range capacity planning should be the responsibility of: a. analysts b. middle management c. top management d. marketing management. personality psychology midterm 2. A firm's production function is qi = 4*Ki.2Li.4. The average daily demand for component B is 750 units. b. C ? The following set of jobs must be processed serially through a two-step system. 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. You have two plants: one in CO and the other in SC. D any machine can be used if available. The amount of production possible under normal working conditions, including planned downtime and scheduled vacations, is called: A. actual capacity. The wage rate in this area is w = $15, and the cost of capital is r = .05. a. 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? The replenishment level you have chosen is 50 backpacks. Differentiate between the strategy process and strategy content. The hours scheduled are 80, and 72 hours are actually worked. chpt 13. All workers performing similar tasks are grouped together, and products pass from one workstation to another. Companies that decentralize their manufacturing split their production processes into various locations or regions. Large international firms deal in considerable volumes of goods and often must obtain a(n) _____ from a group of banks known as a syndicate.. a.call option b.commercial loan c.open account, What is chapter 7 about? 2a- Proximity to customer markets, suppliers, A firm uses 1 capital for every 5 workers to produce 1 output. 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. Air pollution from burning fuel often includes carbon dioxide, sulfur dioxide, nitrogen oxides, mercury, and particulate matter. Yesterday the clinic was open for 9 hours and treated 758 patients. If variable manufacturing overhead is applied to production based on direct labor hours and the direct labor efficiency is unfavorable, will the variable overhead efficiency variance be favorable or unfavorable, or could it be either? Find the firm's short-run cost function, if Ki is fixed at $100,000. a. Part X requires machining on a milling machine (operations A and B are required). Calculate the max 1. A manufacturer of a printed circuit boards has a design capacity of 1000 boards per day. Which of the following is a correct statement? 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. The Ace Steel Mill estimates the demand for steel in millions of tons per year as follows: a. b) manage, A producer is hiring 20 units of labor and 6 units of capital (bundle A). The customers arrive at an average rate of 6 per hour. Systematic capacity planning includes the following steps except: a. estimating future capacity requirements. Consider the following four-step assembly operation with quality problems: The first resource has a processing time of 5 minutes per unit and one employee doing the operation. 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. He did some research and knows that the average price of gas in Spain is approximately 1.21 euros per liter. 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. Buying that gives power to the suppliers of industry standard components or that creates a scarcity of those components Improving supply chain operations can typically rein in "double-digit" productivity growth and reduce product cycles by 30-40%, allowing faster response to customers. In a job shop, effective capacity is only 62 percent of design capacity, and actual capacity is 74 percent of effective output. True Or False Although the long term goal in a just in time operating environment is to approach theoretical capacity, companies never operate at this level. OB) bottleneck. What are some capacity measures for each of follow a. university b.hospital c.computer d.farm. A lock (LockA locked padlock) or https:// means youve safely connected to the .gov website. 4. However, its fixed assets were used at only 75% of capacity. An unused unit of product has a salvage value of $50. How well can customers have needs satisfied? Buying from suppliers could tempt suppliers into becoming direct competitors Product A visits machines 1, 2, and 4. The production budget for year 1 was based on 200,000 units of output. In the past month the plant produced 750 units. 30% c. 20% d. 50%. Each desk uses four units of wood, and each chair uses three units of wood. What internal and external governance mechanisms are in place in microcredit? The unit hiring cost is $150/FTE and the unit firing cost is $320/FTE. Explain how capacity utilization affects product mix and profitability. Fedex was originally designed to deliver time sensitive documents. The standard quantity requ, Supose the marginal product of labor is currently equal to its average product. Each agent is paid $28,000 per year and is able to process 4,000 purchase orders. Calculate the marginal and average products of labor when the level of capital is fixed at 16 and the firm use. A) There are more opportunities for advancement and promotion. All of these facilities operate around the clock. A consumer would purchase electricity from a utility in their area, which would then provide the electricity through its own electricity delivery system. d. None of the above. What are the benefits of an organization utilizing global production? A cost minimizing firm has the following production function for its product. A .gov website belongs to an official government organization in the United States. Location, Location, Location: Where Do We Make It? The following standards for variable manufacturing overhead have been established for a company that makes only one product. Enforcing contracts with foreign suppliers 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 Always Rain Irrigation Inc., would like to determine capacity requirements for the next four years. recently, the production facility has been producing A manufacturing shop is designed to operate most efficiently at an output of 860 units per day. Suppose the firm can hire at a wage of $40 per hour and output can be sold at $10 per unit. Physical, as in manufacturing b. Locational, as in transportation c. Informational, as in consulting d. Physiological, as in health care e. Exchange, as in retailing f. Storage, as in warehousing 6. 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? C. 8 percent. The office equipment is sold for only $4,000. Fixed assets are $420,000 and sales are projected to grow to $830,000. Organizations that have standard products or services generally have smaller capacity cushions. The traditional method of product costing, where the costs of direct materials, direct labor, and factory overhead are included, is called [{Blank}] costing. Currently, the company's fixed assets are operating at 90% of capacity. c) based on service quality standard A process can be balanced by moving work away from the to unused capacity elsewhere in the process. A firm produces good X with just two factors of production: capital, which is fixed in supply, and labor which is variable. The firm employs six bookkeepers who cost the firm Pound 10,000 in total each week. 1) The company has valid alternatives for copper growth within its current portfolio such as Resolution and Winu mines (which we believe are not yet properly valued by Wall Street), 2) Rio. What is the capacity (in customers per hour) of the bakery? What is its utilization if it processes an average of 46 loans per day? In the past month the plant averaged 690 units per day. - 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. What is the probab A manufacturing shop is designed to operate most efficiently at an output of 950 units per day. These power plants are subject to economic, reliability, and environmental regulations by federal, tribal, state, and/or local governments. Each cell has a design capacity of 250 units per day and an effective capacity of 230 units per day. Item B is a component part of Item A which is a finished product ready for retail sales. The [{Blank}] is the maximum capacity at which a facility can run under ideal conditions. b) based on distances. 6. complete protection of intellectual property, 1. requires the expertise in the production of the component or raw material B) A corporation that experiences successful growth is thought of positively by the marketplace and potential investors. A) design capacity B) effective capacity C) optimal capacity D) supply capacity. Describe the concept of capacity and how managing capacity can improve operations and the supply chain flow of goods and services. Can your father do so? 2- If the product must be customized for different countries, then multiple facilities will be needed. When capacity is inadequate, customers can be lost. You decide to start a company that makes and sells backpacks. Explain the process of aggregate capacity planning in service businesses. True or false? d. 1.00. Determine the profit maximizing levels of labor abd output. One production facility will usually be favored when _____. The consumer price index in an economy is 180 one year and 189 the next year. 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. 1 percent. The. If the standard deviation of the weighing scale is 0.02, is the process considered capable? What was Dominy's first major in college and why did he drop out? The standard price for a unit of material is $2.00. The shutdown point is when: A) A firm can no longer pay its debts. 4. The production function for a productis given by Q=100KL. 134 . D) Price is equal to minimum average variable costs. Demand for the product is random, with a norm, A very low production volumes, it is likely that: a. the variable cost will form a major portion of the total cost. Concerns regarding the visibility of all aspects of supply chains and the traceability of materials along supply chains were focused upon. c. unemployment is very low. Three sub-facilities On a given Dallas-Newark flight, there are 220 seats. When capacity is inadequate, market share can shrink. Assume that the repetitive process of production line-1 of the company operates 16 hours per day with a cycle time of 2 minutes; while production line-2 operates 8 hours per day with cycle time of What is the maximum utilization a resource can achieve? 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. True or false? Explain why or why not? e. goods have a low value-to-weight ratio. c. has no impact on the unemployment rate. 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. 5. Production cost: $1 per item Hourly holding cost: $0.10 per item Set-up cost: $270. IB -- Ch. The longest task is 2.4 minutes, and the total time for all tasks is 18 minutes. This imitation illustrates: a. invention. b. the resources will be efficiently used. In a job shop, effective capacity is only 72% of design capacity and actual output is 84% of effective output. The cost of a unit of labor is $80 and the cost of a unit of capital is $20. Assume you own a small (US$15,000,000) manufacturing company that makes components for the automobile industry. The firm is a price taker and the market price of the product is $14. Assume capital is not a fixed cost. (a) include staffing and scheduling (b) include inventory control (c) include defining product specifications (d) None of the above. Calculate the mass, in grams, of 0.824 moles of lead. The fatigue data for a steel is given below: |Stress Amplitude (MPa)|470|440|390|350|310|290|290|290 |Cycles to Failure|1x10^4|1x10^4|1x10^5|1x10^5|1x10^6|1x10^6|1x10^7|1x10^8 a. After evaluating Null Company's manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $15.70 per hour for the labor rate. Test your understanding with practice problems and step-by-step solutions. Determine the term being described or defined by the following statement: The difference between resources used and resources supplied. A) Expected capacity B) Effective capacity C) Projected capacity D) Extended capacity. True or false? 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. True or false? The company has a lower specification limit of 23 mm and an upper specification limit of 23.6 mm. Opportunities exist to improve the energy efficiency of power plants, as well as to locate electricity generation closer to end-users to reduce losses during electricity delivery. Consider a four-step serial process with processing times given in the list below. When fixed costs are high, one production facility will be favored. the integration and coordination of global supply chains would not be possible without information technologies such as the Internet and enterprise resource planning systems. 1. Below are the transaction records for eight weeks to item. Goods with high value-to weight ratios favor a single location to use advantages of centralized production, while with low value-to-weight products it's best to have many production facilities close to the places were these components are needed, Location production facilities for Products: 3 major considerations. Final Flashcards | Quizlet c. goods have a low value-to-weight ratio. 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. Recent flashcard sets. However, many automotive manufacturing companies today use this theory. The beer facility has system efficiency of 90 percent, and the utilization is 80 percent. Organizations have four approaches for capacity expansion. a. Let the cost function c (w, r, y) of a firm give the minimum cost of producing y units of output using labor input, L, and capital input, K, when w is the wage (i.e. Match each of the following items with one or more of the denominator-level capacity concepts by putting the appropriate letter(s) by each item: |a. i. The average safety capacity of Scorla Corp. is ____. The Best Beer Corporation has a beer-processing facility located in Columbus, Ohio. The IMF provides short-term loans to countries in financial crises. 6. trade policies Centralized generation facilities in the United States currently have the capacity to generate more than 1,100 gigawatts of electric power. b. demand is higher than the minimum efficient scale. What is its utilization if it processes an average of 45 loans per day? The majority of electricity generation in the United States today is coordinated by regional system operators to ensure reliability. Centralized generation requires transmission lines, which also use land. China's business ecosystem of networked suppliers,. To become a multinational corporation, the business must be large and must own a huge amount of assets, both physical and financial. 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%. Fill in the blank. The products are very popular, with demands far exceeding the factory's capacity. Currently, two production lines are in place for making bronze plastic sprinklers. The demand at the warehouses located in CA, TX, and OH are resp A company making tires for bikes is concerned about the exact width of their cyclocross tires. Most developing countries offer very competitive labor costs and availability, but many lack the infrastructure of developed countries. chantyreys. 5. infrastructure that the country offers ie seaports, airports, roads, electricity, and water access JavaScript appears to be disabled on this computer. Unit cost is $55.75. d. a company is extremely profitable. Profits earned by producing goods and services in-house will go instead to suppliers Select all that apply: (I) The master production schedule, (II) Routing information, (III) Current shop loads, (IV) Pla A work center consisting of 3 machines operates 40 hours a week. What is the measured capacity of the work center? Now what? One production facility will usually be favored when a a company is a. All rights reserved. The concept of LEAN was originally started and applied with Toyota. Determine the utilization and the efficiency for each of these situations: a. b) An incumbent firm may experience a learning curve that allows it to produce at a lower cos ABC Cleaners' washing machines have a design capacity of 2,900 pounds a day. Discuss the major considerations related to developing capacity alternatives. All rights reserved. The comparison of the expected cost of production against the actual cost of production typically occurs in the A. investment center. 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. Derive the cost-minimizing quantities of labor and capital. Step 1: 26 minutes per unit An assembly line with 17 tasks is to be balanced. 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. A firm wants to minimize the total cost of producing 100 tons of dynamite. - The best run companies usually have the best supply chain. Capacity planning applies only to manufacturing companies. 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. Effective capacity is the ______. The best-run firms usually have the best supply chain, in that superior supply-chain management: Drives standardization and centralization Determine the profit-maximizing levels of labor, In the end, firms allocate scarce resources toward the production of goods and services most valued by society because: a) the opportunity costs of not producing those goods become too high. and services in-house, All activities associated with the flow and transformation of goods and services from the raw material stage to the end user, together with the corresponding flows of monetary funds and information e. is, Montegut Manufacturing produces a product for which the annual demand is 10,000 units. A foreign wholesaler offers to purchase 2,000 scales at $15 each. When companies tend to have various production facilities, they tend to prefer or favor one particular production facility Our experts can answer your tough homework and study questions. In a job shop, effective capacity is only 45 percent of design capacity, and actual output is 63 percent of effective output. Provide one example of this importance in a health services environment to support your argument. 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. Once in production, the PCB machine Jackson has increased staffing levels on some evenings (e.g., first of the month, standard paydays) to reduce patient waiting time. If dema How to find the Max capacity of a process? Make a list of 10 to 20 use situations important to campus area restaurants. An official website of the United States government. Week 1 2 3 4 5 6 MP Southern Mfg., Inc., is currently operating at only 78 percent of fixed asset capacity. Water used for steam production or cooling may be returned at warmer temperatures to water bodies and may contain contaminants. Q=K^1/4 L^3/4 a.) Increases accountability for product quality and process controls Which of these is responsible for the movement of materials in the production process?
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