Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 1, Problem 3.1Q
Summary Introduction
Interpretation: The Company as an operation, the type of output, type of operation, its control and uncertainties.
Concept Introduction: The operational process of a full length motion picture producer and how they face different stages in generating the final outcome so as to spread their name across the industry. The producer when adhering to the operational procedures has to undergo so many operational deviances that need to be addressed in ensuring a smooth functioning of the whole process.
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After deciding to have three machines to meet the forecast demand for the coming five years, you are considering the following information to decide on the best machines to buy.
Alternative
Economic life
Investment/machine
Salvage value/machine
Capacity
Italian
9
$200000
12000
100 unit/hour
German
9
$250000
25000
100 unit/hour
Japanese
9
220000
30000
100 unit/hour
You are expecting to sell 2500 units a day 5 days a week at a unit cost of $3 with annual incease of 1%. Labor per hour per machine is $10 and expected to remain the same over the whole period. Annual material cost (including waste) is expected to be $250000 for the German machine, $220000 for the Italian and $200000 for the Japanese. Maintenance and other operating expenses (excluding depreciation) are expected to total $180000 per year with annual increase of 3%. Which machine would you buy if the the cost of capital (discount rate is 12%).
Answer the question below.
Is there a connection between the planning and scheduling of activities and the supply chain's capacity to remain viable? Is it possible for the organization to make use of both?
Chapter 1 Solutions
Practical Operations Management
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - Prob. 5DQCh. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - Prob. 3P
Ch. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - Prob. 9PCh. 1 - Prob. 10PCh. 1 - Prob. 11PCh. 1 - Prob. 12PCh. 1 - Prob. 13PCh. 1 - Prob. 14PCh. 1 - Prob. 15PCh. 1 - Prob. 16PCh. 1 - Prob. 17PCh. 1 - Prob. 18PCh. 1 - Prob. 19PCh. 1 - Prob. 20PCh. 1 - Prob. 21PCh. 1 - Prob. 22PCh. 1 - Prob. 1.1QCh. 1 - Prob. 1.2QCh. 1 - Prob. 1.3QCh. 1 - Prob. 2.1QCh. 1 - Prob. 2.2QCh. 1 - Prob. 2.3QCh. 1 - Prob. 3.1QCh. 1 - Prob. 3.2QCh. 1 - Prob. 3.3QCh. 1 - Prob. 3.4Q
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