Given the following four capacity alternatives, find the best production method for every production volume. Method Fixed Cost ($) Variable Cost ($/unit) A 200 5 100 10 C 150 4 250 2
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- What do you understand by capacity planning? Explain the decision tree modeling for capacity expansion1. What factors should be considered when selecting the appropriate capacity cushion? Howdoes the choice of capacity cushion relate to other decisions in operations management?To other functional areas? 2. Capacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?In an eff ort to increase capacity in Work Center 111 forweek 13, Yankee Machine Shop has authorized overtime. Th ework center will be staff ed 12 hours per day for six days. Becauseof the additional stress on the three machines, it is expected thatthe utilization rate will drop to 85 percent. Th e effi ciency rate isexpected to fall to 80 percent.(a) Calculate the capacity available in Work Center 111 forweek 13.(b) Will this plan provide suffi cient capacity to completethe orders given in Problem 23? If not, what do yourecommend be done?
- An airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, theaverage number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to theflight segment. If demand is expected to increase to 84 cus-tomers for this flight segment in three years, what capacityrequirement should be planned? Assume that managementdeems that a capacity cushion of 25 percent is appropriateA company has a factory that is designed so that it is most efi cient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?What is the fundamental distinction between design capacity and effective capacity? Provide a brief example
- IIn a job shop, effective capacity is only 69 percent of design capacity, and actual output is 76 percent of effective output. What design capacity would be needed to achieve an actual output of 13 jobs per week? What is its effective capacity? a. The Design Capacity needed to achieve the required actual job outputs =Blank 1 (round to whole number) b. The Effective Capacity needed to achieve the required actual job outputs = Blank 2 (round to whole number) Blank 1 Blank 2 Add your answer Add your answerExplain capacity planning concepts with examples ?31 please help me please!A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 19,200 units output each month. However, it has an absolute maximum output capability of 23,000 units per month, and can produce as little 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 13,280 units ir October, what is the capacity utilization rate in October for this factory? Note: Round your answer to 1 decimal place.
- A biotech firm is considering abandoning its old plant, built 23 years ago, andconstructing a new facility that has 50% more square footage. The original cost of the old facility was $300,000, and its capacity in terms of standardizedproduction units is 250,000 units per year. The capacity of the new laboratoryis to be 400,000 units per year. During the past 23 years, costs of laboratoryconstruction have risen by an average of 5% per year. If the cost-capacity factor, based on square footage, is 0.80, what is the estimated cost of the newlaboratory?Capacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?a. what is the relationship between design capacity, system capacity, and actual output. b. how is a projected output within the boundaries of the design capacity and system capacity?