View an interactive version of this diagram >>. - The best run companies usually have the best supply chain. Sets stage for offsets through direct procurement purchasing in and indirect support of local markets 100,000 shares are maintained as treasury stock and 1,400,000 shares are currently in circulation. The following standards for variable manufacturing overhead have been established for a company that makes only one product. D. 18 percent. The MPK = 100L and MPL = 100K. ______ is responsible for the design of new products in the production process. d. fixed costs are low. Suppose that each unit of capital costs R and each unit of labor costs W. a. Q = A f (L, K) = 30L + 6L^2 - 0.10L^3 (a)Is this a short run or a long run production function? What are the advantages and disadvantages of incremental versus one-step expansion? 5. secures the supply source Reduces product cycle times D any machine can be used if available. 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? In an economy experiencing growing production capacity: a) depreciation is greater than gross private domestic investment. International Business CH 13 Flashcards | Quizlet Horizontal Integration v. Forward Integration. When capacity is inadequate, market share can shrink. Market Penetration iii. 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. 2. minimum efficient scale and it comparison to demand, as volume increases, unit costs decreases due to economies of scale Maximizes flexibility by allocating orders among the suppliers in a dynamic way China's business ecosystem of networked suppliers,. The longest task takes 2.8 minutes to complete, and the total time for all tasks is 22.7 minutes. B. production of the 100th unit, For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $7. b) Firms produce a diverse mix of products. One production facility will usually be favored when a. fixed costs are low. 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. If dema How to find the Max capacity of a process? Explain the process of aggregate capacity planning in service businesses. c. the price a person pays to own that factor of production indefinitely. Currently, the company's fixed assets are operating at 90% of capacity. View full document D.. The 'weights (Wi)' typically used in the numerator and denominator of the center-of-gravity computational method is: a) based on volumes. 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. Reid will be driving through Spain this summer. Please click here to see any active alerts. Time spent Ted is a manager at the strategic business unit level of his organization. The company did not maintain any inventories, so total cos, Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a kanban/lean production approach. b. innovation. 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. A) design capacity B) effective capacity C) optimal capacity D) supply capacity. The amount of production possible under normal working conditions, including planned downtime and scheduled vacations, is called: A. actual capacity. . Although the facility can complete the entire production . A computer repair service has a design capacity of 80 repairs per day. -most of the activities can be grouped into 4 business functions Procuring goods and services from suppliers can also carry the risk of suppliers providing those same goods and services to the competition. What internal and external governance mechanisms are in place in microcredit? A loan processing operation that processes an average of 3 loans per day. The firm operates and experiences demand 365 days, Wiki Wiki company has determined that the variable overhead rate is $4.50 per direct labor hour in the Fabrication Department. The Besnier Company had $250 million of sales last year, and it had $75 million of fixed assets that were being operated at 80% of capacity. A firm produces three goods (x,y,z) in a fixed proportions (0.5,0.3,0.2). What are the inputs to CRP process? Argue why capacity analysis is important in a health services environment. All workers performing similar tasks are grouped together, and products pass from one workstation to another. The production function for a product is given by Q = 100KL. b) based on distances. This is an example of ______. What is the recommended production rate if a level strategy is adopted with no back orders or stockout? e. goods have a low value-to-weight ratio. 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. Excess capacity arises when firms cannot sell all of their output at the current market price. Consider the following two mutually exclusive alternatives, related to an improvement project, and recommend which one should be implemented. The beer facility has system efficiency of 90 percent, and the utilization is 80 percent. What was their capacity utilization rate last month? c. service is less profitable than manufacturing. D) normal accounting performance. 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? Improving . b. is just breaking even. Operations Management questions and answers. Determine the term being described or defined by the following statement: The difference between resources used and resources supplied. The second resource What happens if a population overshoots its carrying capacity? A firm that earns its cost of capital is said to be earning A) above 5. b. The tariffs prevailing in this industry are currently low. recently, the production facility has been producing A manufacturing shop is designed to operate most efficiently at an output of 860 units per day. e. transportation costs. What are good basic ethics strategies for an organization to be productive? The concept of LEAN was originally started and applied with Toyota. The A motorcycle factory can produce 500 units of product in one day under normal conditions and 800 maximum units with overtime labor. Simplifies the production process You also know that the wage rate is $2, the price of capital is $6, and the price of the product is $216 In the short-run, capital is fix, Consider a product with a daily demand of 400 units, a setup cost per production run of $100, a monthly holding cost per unit of $2.00, and an annual production rate of 292,000 units. Assume Baldwin's product Bid invests in increasing its capac You are playing rock-pass-scissors with a friend. 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. D) Price is equal to minimum average variable costs. 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. The Megabuck Hospital Corp. is to build a state-subsidized nursing home catering to homeless patients as well as high-income patients. 3. logistics C) below normal economic performance. c. Finance. It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. 50 terms. This strategy also changes the organizational structures of companies. The specification for the weight of a chemical in compound is \pm 0.06. B. potential output and current output. 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. The beer facility has a system efficiency of 90 percent, and the utilization is 80 percent. E. expense center. - The best run companies usually have the best supply chain. The [{Blank}] is the maximum capacity at which a facility can run under ideal conditions. What is this rate equivalent to in U.S. dollars per gallon? =___? All rights reserved. The labor standard is 100 items/FTE. Processing time per container is 0.1 days. Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $____. a) A long rectangular sheet of metal 12 in wide is to be made into a trough by turning up two sides to form right angles. Createyouraccount. Its average resource utilization per year is calculated as 70%. In a job shop, effective capacity is only 45 percent of design capacity, and actual output is 63 percent of effective output. A Printed Circuit Board (PCB) machine installs integrated circuits onto a board. e. goods have a low value-to-weight This problem has been solved! C. standard cost center. A production system in which goods dominate the value of the product Students also viewed. Each backpack has a gross profit of $40, a holding cost of $10, and a shortage cost of $15. XYZ Corporation operates in a market that produces a homogeneous good. As volume increases, unit costs decrease due to economies of scale and scope and learning curve effects. Currently, two production lines are in place for making bronze and plastic sprinklers. Increases accountability for product quality and process controls Derive the cost-minimizing quantities of labor and capital. 6. chapter 13 Flashcards | Quizlet A total of 2,000,000 shares of common stock may be issued under the charter of Aspin Corporation. Q = A f (1, K) = 30L + 6L^2 - 0.10L^3 (a) Is this a short run or a long run production function? Waste Incineration: Advantages & Disadvantages | Greentumble Chapter 13: Global Operations and Supply Chain Management - Quizlet The forecasted demand for fudge for the next four months is 220,150,110, and 70 pounds. (e) goods have a low value to weight ratio. This situation exemplifies overpayment inequ Capacity requirements planning helps managers reconcile [{Blank}] with [{Blank}]. Frosted Flak Is the Facilities plan ever completed for an enterprise/company/business? 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. The machines operate on two 8-hour shifts. Tipton Manufacturing is practicing, One production facility will usually be favored when. 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. c. investment is likely to increase. Blue Springs is a company that produces bottled water. - design the system as a collection of business processes and not functions, a property of ERP systems to simultaneously operate in multiple languages, a property of ERP systems to handle the accounting standards of multiple countries, a property of ERP systems to handle multiple currencies, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. a) What is the Economic Prod, Consider a product with a daily demand of 400 units, a setup cost per production run of $100. b. fixed costs are high. 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. C&A clinic has a design capacity of 60 patients per hour and an effective capacity of 40 patients per hour. The bank has 3 tellers and on average, it takes 2 minutes to service a customer. $10,800 C. $40,000 Based upon the information provided, what level of sales could Johnson's have obtained if it had been operating at full capacity? The Bango Toy Company produces several types of toys to seasonal demand. The actual price per pound of material is $78; the standard. The cost of an aerobic digester system with a capacity of 140 million gallons per day (MGD) is $2.1 million. See Answer Each desk uses four units of wood, and each chair uses three units of wood. 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 outsourcing and the supplier that will provide the outsourced goods and services are located in different countries; also called offshoring, when a firm and the supplier are located in different countries, a company that only completes product design and outsources all other production process functions, when the firm has been buying goods and services from suppliers, and then decides to make these goods and services in-house. During the month the company purchased and used 600 units of this material at a price of $2.25 per unit. Find the firm's short-run cost function, if Ki is fixed at $100,000. MQM 385 Elango Exam 3 Chapter 7,9,12 - Chegg What factors need to be taken into consideration while determining the practical capacity of a unit? 0.7500 b. What design capacity would be needed to achieve an actual output of 17 Material delays have routinely limited production of household sinks to 400 units per day, plant efficiency is 80%, what is effective capacity? The. Upload your study docs or become a member. How easily can product use be made? When making supply chain decisions, such as where in the world to locate a new plant or whether to use a foreign or domestic supplier, most managers rely on the discounted cash flow (DCF) model to. b. Why China Is "The World's Factory" - Investopedia Wrong answer is provided by testbank: When fixed costs are high, one production facility will be favored. What should be the properties of the combination of chemicals and labor that minimizes production costs? 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. Q=K^1/4 L^3/4 a.) Step 1: 34 minutes per uni Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. 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). Provide one example of this importance in a health services environment to support your argument. A loan processing operation that processes an average of 2 loans per day. Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. 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 idea behind preventive maintenance is that the worst condition a machine should ever be in is on the day it is purchased. c. unemployment is very low. Product B only visits machines 1 and 3. Make a list of 10 to 20 use situations important to campus area restaurants. A. lagging capacity behind demand B. building on shared experience C. fo One production facility will usually be favored when _______. 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? True or false? B) normal economic performance. - a firm could increase the complexity of its production process - control over quality. 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 0.6667 c Zytel Corporation produces cleaning compounds and solutions for industrial and household use. Practical capacity | A computer repair service has a design capacity of 80 repairs per day. The longest task is 2.4 minutes, and the total time for all tasks is 18 minutes. How much capacity does the restaurant have on a weekly basis and an annual basis in hours? One production facility will usually be favored when _______. You decide to start a company that makes and sells backpacks. These facilities are usually located away from end-users and connected to a network of high-voltage transmission lines. \end{matrix} the effective capacity, however, is 700 boards per day. - Another consideration is the notion of the minimum efficient scale and its comparison to demand. Maximum capacity refers to the upper limit of : Select one : a. supplies b. rate of output c. demand d. inventories e. finances. From here, the librarie Battonkill Company, operating at full capacity, sold 124,200 units at $63/unit in 2014. b. It follows that the: A. production of the 100th unit of output increases the firm's profit by $3. Buying from suppliers could unintentionally lead to suppliers becoming competitors. This caught the attention of many global companies due to safety risks in their products. It takes a nurse 1.5 hours to complete one patient visit (including travel times and breaks). As an end-to-end biomanufacturing facility, the Biologics Manufacturing Centre has the capacity to complete the entire vaccine production process - from producing the antigen that causes an immune response, to filling vials and getting them ready for shipping to their final destination. b. always less than the rental price. 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. The average daily demand for component B is 750 units. In an 11 week period, a work center produces 1050 standard hours of work. Suppose that the president has decided to increase government spending by building more libraries. Organizations have four approaches for capacity expansion. 20 terms. Centralized generation facilities in the United States currently have the capacity to generate more than 1,100 gigawatts of electric power. c. developing alternative strategies for addressing ga A computer repair service has a design capacity of 80 repairs per day. Some impacts vary based on the energy resourcefor example, whether the power plant uses fossil fuel or a renewable resource. There is one machine at each step of the process and this is a machine-paced process. e. a company is extremely profitable. A manufacturing plant costs approximately $500 million to construct and requires a highly skilled work force. chpt 13. d. None of the above. Some impacts vary based on the energy resourcefor example, whether the power plant uses fossil fuel or a renewable resource. Making components in-house also allows the company more control over deliveries What is the demonstrated capacity of the work center? Three different 15-horsepower electric motors are being considered. 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. In a job shop, effective capacity is only 72% of design capacity and actual output is 84% of effective output. 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. a) Predatory pricing is easy to prove in a court of law. 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. 1. the integration and coordination of global supply chains would not be possible without information technologies such as the Internet and enterprise resource planning systems. Amy Xia's plant is designed to produce 7,000 hammers per day but is limited to making 6,300 hammers per day because of the time needed to change equipment between styles of hammers. True or false? The Albert Nock Company had $210 million of sales last year, and $(A) million of fixed assets which were being operated at 0.75% of capacity. The company's targets are high, and they are able to generate substantial profits. There is a machine at each step of the process, and this is a machine-paced process. 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) 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. No need to invest the money that is associated with making The manager would like to What are normal capacity, practical capacity, and theoretical capacity? 1. Quiz2-Prepare9.docx - 9. Of the following, which is NOT an Both items are produced at Work Center 101. Little Known Tax, Ltd prepares tax returns for clients. The firm uses two factors of production - chemicals and labor.
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