11t12J2014

Worksheet

Problem 5-11

Assignmo* Print \lievv

quantities. Enter the resulting total purchasing cost as a whole number. Omit the "$" sign.)

Total processing time in minutes per machine: A B

c

Number of each machine needed and total purchasing cost A$

b. Consider this additional infornation: The machines differ in terms of hourly operating costs: The A machines have an hourly oper:ating cost of $12 each, B machines have an hourly operaiing cost of g14 each, and C machines have an hourly operating cost of $1S each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incuned to satisfy demand? (Use rounded machine quantities from Part a. Do not round any other intermediate calculations. Round your final answers to the nearest whole number. Omit the "$" sign.)

cost for each machine

B

c $

$

Total A B

c

Difficulty:2 Medium

Learn i ng Objective: 05-03 Describe ways of defining and measuring capacity.

Learning Objective: 05-06 Discuss the major considerations related to developi ng capacity alternatives.

Learning Objective: 05-08 Briefly describe approaches that are useful for evaluating capacity alternatives.

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11t122014

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Deternine the capacity of this process.

Capacity lhr

Worksheet

Problem 5-14

Diffculty:1 Easy

Leaming Objedive:0$O3 Describe ways of def ning and measuring capacity.

Learning Objective: 05-04 Name several determinants of effective ca pacity.

Assignment Print Viet,v

Problem 5-14 The following diagram shows a 4-step process that begins with Operation 1 and ends with Operation 4. The rates shown in each box represent the effective capacity of that operation.

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3.60 points

Problem 5-11 A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows:

Machine A B c

Product forecasts and processing times on the machines are as follows:

PROCCESSING TIME PER UNIT (minutes)

Annual Product Demand

1 24,000 2 8,000 3 30,000 4 18,000

a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day,240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine

Cost $ 80,000 $ 70,000 $40,000

A 1

1

6 6

B 4 3 4 5

C 6 5 3 1

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11t122014 Assignmeflt Print Vie$v

a. Determine each altemative's breakeven point in units. (Round your answer to the nearest whole amount.)

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units

units

b. At what volume of output would the two alternatives yield the same profit? (Round your answer to the nearest whole amount)

Profit units

c. lf expected annual demand is 15,0@ units, which altemative would yield the higher profit?

Higher profit 1C[cf to setect) v

Worksheet

Problem 5-4

Difficulty:1 Easy

Leaming Objective: 05-08 Briefl y describe approaches {hat are useful for evaluating capacity altematives.

award:

3. 3.60 points

Problem 5-9 A company manufactures a product using two machine cells. Each cell has a design capacity of 250 units per day and an effective capacity of 230 units per day. At present, actual output averages 200 units per cell, but the manager estimates that productivity improvements soon will increase output to 229 units per day. Annual demand is cunently 70,000 units. lt is forecasted that within two years, annual demand will triple. How many cells should the company plan to acquire to satisfy predicted demand under these conditions? Assume 243 workdays per year.

Cells

Worksheet Difficulty: 1 Easy Learn i ng Objective: 05-03

Problem 5-O Describe ways of defining and measuring capacity.

A 3.60 ooints -.

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vlptnl4 Assignment Print Vien

award: 3.60 points

Problem 5-1 Determine the utilization and the efficiency for each of these situations:

a. A loan pree$sing operation that processe an avemge of I loans per day. The operation has a design capacity of 16 loans per day and an effective capacity of 14 loans per day. (Round your answer to 1 decimal place. Omit the "o/o" sign in your response.)

Utilization

Efficiency

A fumace repair team that services an avefiage of 4 fumaces a day if the design capacity is g fumaces a day and the effective capacity is 8 fumaces a day. (Round your answer to 1 decimal place. Omit the "7o" sign in your response.)

Utilization

Efficiency

Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratim than those other systems?

This is not necessarily (Click to select) v . [f the design capacity is relatively (Click to select) the utilization could be (Click to select) v even though the efficiency was (Click to select) v .

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Worksheet

Problem 5-1

Difficulty. 1 Easy

Learn i ng Objective ; 05-03 Describe ways of defining and measuring capacity.

award: 3.60 points

Problem 5-4 A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two altematives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $37,000 for A and $31,000 for B; variable costs per unit would be $g for A and $11 for B; and revenue per unit would b€ $19.

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