Exam 4: Process Design and Capacity Management

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 they normally attend 80 patients, what is the department's capacity utilization?

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 A and Process B?

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 June 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. -A call center company's effective capacity is 1,600 calls each day. If the company wants to attend 1,350 calls per day from the 1,200 calls they normally can attend, what will be the company's utilization growth?

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. Based on the break-even quantity computed in Question 50, find the break-even cost.

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 A 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. -Fabricating Solutions is open each month for how many minutes 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. -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 quantity.