Refer to the process diagrammed below. If the maximum capacity of operation #2 can be increased from 10 units per hour to 15 units per hour, the capacity utilization of operation #1 will increase from Operation #1 Maximum capacity 20 units per hour Operation #2 Maximum capacity 10 units per hour Operation #3 Maximum capacity 14 units per hour The capacity utilization for operation #1 will remain unchanged. 50% to 70% 50% to 75% 20% to 75%
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- 8. A process is designed to produce 2,000 units per hour. The process has a scrap rate of 2 percent and an 8 percent inherent inefficiency. Assuming that the actual output of the process is 1,750 units per hour, what are the process design capacity, available capacity, actual capacity, capacity utilization, efficiency, and output gap for this process?A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost A B C Product forecasts and processing times on the machines are as follows: $80,000 $70,000 $40,000 Annual Product Demand 1 25,000 2 22,000 3 20,000 4 9,000 A B PROCCESSING TIME PER UNIT (minutes) A B C A 5 3 3 5 B 4 1 1 Click here for the Excel Data File Total processing time in minutes per machine: 296,000 196,000 6 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, 250 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 quantities. Enter the resulting total purchasing cost as a whole…A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost $50,000 A B $40,000 C $70,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Annual Product Demand 1 2 3 4 18,000 25,000 15,000 9,000 A 1 5 4 5 A B C B Click here for the Excel Data File 6531 Total processing time in minutes per machine: 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 8 hours a day, 220 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 quantities. Enter the resulting total purchasing cost as a whole number.) C 2 1 2 6
- A computer repair service has a design capacity of 80 repairs per day. Its effective capacity, however, is 64 repairs per day, and its actual output is 62 repairs per day. The manager would like to increase the number of repairs per day. Critically examine these factors and explain why you would recommend that the manager investigate: quality problems, absenteeism, or scheduling and balancing?At Symtecks, the output of a specific process is valued at $100 per unit. The cost of labor is $50 per hour including benefits. The accounting department provided the following information about the process for the past four weeks: Week 1 Week 2 Week 3 Week 4 Units Produced 1,124 1,310 1,092 981 Labor ($) 12,735 14,842 10,603 9,526 Material ($) 21,041 24,523 20,442 18,364 Overhead ($) 8,992 10,480 8,736 7,848 a. Use the multifactor productivity ratio to see whether recent process improvements had any effect and, if so, when the effect was noticeable.b. Has labor productivity changed? Use the labor productivity ratio to support your answer.A process currently services an average of 49 customers per day. Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. If demand is expected to be 65 percent of the current level in five years and management wants to have a capacity cushion of just 3 percent, what capacity requirement should be planned? The needed capacity requirement is customers per day. (Enter your response rounded up to the next whole number.)
- Fast Burger Inc. is building a new restaurant near a college football stadium. The restaurant will be open 16 hours per day, 360 days per year. Managers have concluded that the restaurant should have the capacity to handle a peak hour demand of 120 customers. Assume front-counter service personnel can take and assemble orders at the service rate of 14 customers per hour and the target labor utilization rate for this job is 70 percent. According to the information, determine the the number of front-service counter people that should be assigned to this peak demand period. Only for non-integer results, round your answer UP to the nearest integer. For example, if your answer is 5.05, type 6; if your answer is 5, type 5. Your Answer: AnswerMetters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Metters Cabinets projects an annual demand of 24,000 units for the Maxistand. The Maxistand will sell for $120 per unit.a) Which process type will maximize the annual profit from producing the Maxistand?b) What is the value of this annual profit?Use the graph to answer the following question: INV B - o A C ROP TIME
- A manager must decide which type of machine to buy, A, B, or C. Machines costs are as follows: Machine Cost A $40,000 B $30,000 C $80,000 Product forecast, processing times on the machines, and setup times are as follows: Processing Time Per Unit (minutes) Product Annual Demand A B C Setup Times (minutes) Production Lots (units) 1 16,000 3 4 2 20 200 2 12,000 4 5 3 35 100 3 6,000 5 6 3 60 50 4 30,000 2 4 1 15 500 Machines operate 10 hours a day, 250 days a year. The manager wants to have a capacity cushion of 10%. a. Assume that only purchasing costs are being considered. Which machines would have the lowest total cost, and how many of that machines would be needed? b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $11 each, B machines have an hourly operating cost of $10 each, and C machines have an hourly operating cost of $12 each. Which alternative would…Worthington Hills grocery store has five regular checkout lines and one express line (12 items or less). Based on a sampling study, it takes 12 minutes on the average for a customer to go through the regular line and 3 minutes to go through the express line. The store is open from 9 a.m. to 9 p.m. daily. a. What is the store's maximum capacity (customers processed per day)? Round your answer down to the nearest whole number. customers processed per day b. What is the store's capacity by day of the week if the five regular checkout lines operate according to the schedule below (the express line is always open)? Do not round intermediate calculations. Round your answers down to the nearest whole number. Sun Hours/Day 9-12 a.m. 1 2 12-4 p.m. 3 5 4-6 p.m. 4 3 5 3 6-9 p.m. 4 4 5 2 *A "3" means 3 regular checkout lines are open on Monday from 4 to 6 p.m. The store's capacity by day of the week (customers per day): Hours Mon Tue Wed Totals Mon Tue Wed Thur Fri Sat 2 2 4 2 3 5 4 1 2 3* 5 1 2 3…Identify a business operation to which you have access to information and operation to observe the physical space of the business. You can choose area of service such as clinic, restaurant, café, a specific department of a hospital/school or any other relevant business or service setting. Collect information about the capacity of service. Additionally, obtain the average number of customers obtained service for the past 6 months (each month separately). The word limit for this assignment shall be 2500 words. And the assignment shall include the following: Analyze and evaluate literature of capacity management and explain different capacity strategies and capacity constraints. Analyze and evaluate literature on demand management and explain demand management strategies. Also address the changing nature of the market demand for products or services Based on the information you have collected from the organization; discuss about the capacity and demand management strategies they are…