Exam 4: Process Design and Capacity Management

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

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 utilization growth at Bob's firm from 2014 to 2015 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. -Find the percentage change in utilization from winter to summer at the bottling company based on the information provided above.

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, calculate the break-even quantity.

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. -What is the break-even point for Site D if Rey decides to charge $21 per student?

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 2014 at Bob's firm from the information provided above.

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. Instead of purchasing from outside, the firm could buy a gummy bag machine for $2,500 and make gummy bags for $1.00 per unit. At what point is buying the units the same as making them?

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. -Calculate the capacity utilization of the machine during the winter based on the above information.

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 -How many futons does Sunderland have to make in house to break even with buying them?

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

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 -A company with fixed costs of $20,000 per month has a target price of $180 for their sole product, a heat shield for masonry fireplaces. What level of output represents their break-even point if their variable cost for producing is $40 per unit?

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. -Calculate the capacity utilization of the machine during the winter based on the above information.

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. -An emergency department of a city hospital can serve 110 patients per day. If the department wants to serve 100 patients per day, what will be the capacity utilization?

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. -An emergency department of a city hospital can serve 110 patients per day. If the department wants to serve 100 patients per day instead of the 80 patients per day they normally serve, what will be the department's percentage change in utilization?

Cherry Street Creamery served an average of 67 ice cream customers per day during June. Its maximum throughput was 90 per day. In July, they sent advertisements out to nearby neighborhoods, and for that month, Cherry's served an average of 84 per day. -Find the capacity utilization during the month of July from the information provided above.

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. -If the projected total demand is for 6,000 units, which process should be used?

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 -Based on the answer to Question 31, what would be Sunderland's break-even cost?

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 Albany?

Cherry Street Creamery served an average of 67 ice cream customers per day during June. Its maximum throughput was 90 per day. In July, they sent advertisements out to nearby neighborhoods, and for that month, Cherry's served an average of 84 per day. -Find the utilization growth from the month of June to July 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 utilization growth from February to March at Fabrications Solutions from the information provided above.