Exam 4: Process Design and Capacity Management

Three processes have the following costs: Process A has a fixed cost of $2,000 and variable cost of $3.00/unit. Process B's fixed cost is $4,000 and variable cost is $2.60/unit. Process C's fixed cost is $8,000 and variable cost is $2.40/unit. -Over what output range would Process C be preferred?

Sunderland Furniture is determining the make or buy for a new type of futon. Make-or-buy analysis indicates whether it would be preferable to make the new futon in house (option A) as compared to buying from the low-cost furniture maker (option B). Here are the two options the company has: Option A: Make at Sunderland, fixed costs = $7,000, variable costs = $39 per unit Option B: Purchase the futon from a Mexico-based furniture maker for $46 per unit -If Sunderland decides to sell the futon made in house for $53 per unit, find the break-even revenues.

Three processes have the following costs: Process A has a fixed cost of $2,000 and variable cost of $3.00/unit. Process B's fixed cost is $4,000 and variable cost is $2.60/unit. Process C's fixed cost is $8,000 and variable cost is $2.40/unit. -April Ross, a procurement specialist with Quicken Tools, is determining the make-or-buy quantity for a new product. She can have them made for $65 each, with an equipment investment of $25,000, or Quicken could buy them for $90. Determine the break-even quantity.

A major packaging company is interested in establishing a centralized distribution warehouse to manage logistics activities for its East Coast operations. The company conducts exhaustive research on land and construction costs, utilities, and wages at three sites: Cleveland, Albany, and Charlotte. The following table displays the different costs: -What level of output represents their break-even point between Cleveland and Charlotte?

Three processes have the following costs: Process A has a fixed cost of $2,000 and variable cost of $3.00/unit. Process B's fixed cost is $4,000 and variable cost is $2.60/unit. Process C's fixed cost is $8,000 and variable cost is $2.40/unit. -A firm can procure gummy bags for $1.25 and sell them for $1.99. If the firm purchases 750 units, how many units does it have to sell to break even?

A major packaging company is interested in establishing a centralized distribution warehouse to manage logistics activities for its East Coast operations. The company conducts exhaustive research on land and construction costs, utilities, and wages at three sites: Cleveland, Albany, and Charlotte. The following table displays the different costs: -Over what output range would Charlotte as a site be preferred?

Three processes have the following costs: Process A has a fixed cost of $2,000 and variable cost of $3.00/unit. Process B's fixed cost is $4,000 and variable cost is $2.60/unit. Process C's fixed cost is $8,000 and variable cost is $2.40/unit. -Over what output range would Process B be preferred?

A bottling machine produces an average of 11,500 units per week during the winter months, when its maximum sustainable throughput is 15,000 units per week. During the summer months, the machine produced 16,000 units per week when its maximum sustainable throughput was raised to 20,000 per week. -The Heritage Center can normally accommodate 400 visitors per day. For the past 50 weeks, the center had 79,350 visitors. If the center is open 5 days per week, what is the capacity utilization over the 50-week period?

Bob Thornton and his staff can normally accommodate 360 clients per day. In 2014, Bob Thornton and his staff served 217 clients. During 2014, Bob provided rigorous customer orientation training for all his staff. In 2015, Bob's firm served 295 clients. -Find the capacity utilization during 2015 at Bob's firm from the information provided above.

A major packaging company is interested in establishing a centralized distribution warehouse to manage logistics activities for its East Coast operations. The company conducts exhaustive research on land and construction costs, utilities, and wages at three sites: Cleveland, Albany, and Charlotte. The following table displays the different costs: -Over what output range would Cleveland as a site be preferred?

Fabricating Solutions in Minnesota manufactures widgets, and the company's effective capacity is 2 units in 5 minutes. The company is usually open 12 hours per day (2 shifts per day and each shift is 6 hours each day) and 20 days for each month. The actual output for February was 4,750 units, and the actual output for March was 5,200 units. -Find the capacity utilization in March at Fabricating Solutions from the information provided above.

Fabricating Solutions in Minnesota manufactures widgets, and the company's effective capacity is 2 units in 5 minutes. The company is usually open 12 hours per day (2 shifts per day and each shift is 6 hours each day) and 20 days for each month. The actual output for February was 4,750 units, and the actual output for March was 5,200 units. -What is Fabricating Solutions' effective capacity for a month based on the above information?

A major packaging company is interested in establishing a centralized distribution warehouse to manage logistics activities for its East Coast operations. The company conducts exhaustive research on land and construction costs, utilities, and wages at three sites: Cleveland, Albany, and Charlotte. The following table displays the different costs: -Over what output range would Albany as a site be preferred?

A bottling machine produces an average of 11,500 units per week during the winter months, when its maximum sustainable throughput is 15,000 units per week. During the summer months, the machine produced 16,000 units per week when its maximum sustainable throughput was raised to 20,000 per week. -Rey evaluates levels of demand ranging from 100 to 2,500 students per year. Which site has the lowest cost for the greatest range of students throughout this continuum?

Fabricating Solutions in Minnesota manufactures widgets, and the company's effective capacity is 2 units in 5 minutes. The company is usually open 12 hours per day (2 shifts per day and each shift is 6 hours each day) and 20 days for each month. The actual output for February was 4,750 units, and the actual output for March was 5,200 units. -A call center company's effective capacity is 1,600 calls each day. If the company wants to attend 1,350 calls per day, what will be the capacity utilization?

Fabricating Solutions in Minnesota manufactures widgets, and the company's effective capacity is 2 units in 5 minutes. The company is usually open 12 hours per day (2 shifts per day and each shift is 6 hours each day) and 20 days for each month. The actual output for February was 4,750 units, and the actual output for March was 5,200 units. -A call center company's effective capacity is 1,600 calls each day. If they normally attend 1,200 calls per day, what is the company's capacity utilization?

Classroom effective capacity = 120 students Actual classroom enrollment (fall semester) = 98 students Actual classroom enrollment (spring semester) = 109 students -Find the utilization growth from fall to spring semester from the information provided above.

Fabricating Solutions in Minnesota manufactures widgets, and the company's effective capacity is 2 units in 5 minutes. The company is usually open 12 hours per day (2 shifts per day and each shift is 6 hours each day) and 20 days for each month. The actual output for February was 4,750 units, and the actual output for March was 5,200 units. -Find the capacity utilization in February at Fabricating Solutions from the information provided above.

A bottling machine produces an average of 11,500 units per week during the winter months, when its maximum sustainable throughput is 15,000 units per week. During the summer months, the machine produced 16,000 units per week when its maximum sustainable throughput was raised to 20,000 per week. -A new product has the following information: fixed costs = $650,000, variable costs = $17 per unit, and the projected sales price = $30 per unit. Calculate the break-even revenue.

Three processes have the following costs: Process A has a fixed cost of $2,000 and variable cost of $3.00/unit. Process B's fixed cost is $4,000 and variable cost is $2.60/unit. Process C's fixed cost is $8,000 and variable cost is $2.40/unit. -What level of output represents the break-even point between Process B and Process C?