The Viva Mirror & Deco Company has five employees which makes three differentkinds of hand-crafted mirrors: a wood-framed, aluminum-framed and vinyl-framedmirror. They earn RM60 for each wood-framed mirror, RM40 for each aluminum-framed mirror and RM40 for each vinyl-framed mirror.Fadli makes the wood frames, and can make 8 per day. Alan makes the aluminumframes, and can make 6 per day. Selva makes vinyl frames and can make 7 per day.Firdaus can make wood frames and aluminum frames. If he is devoted to make woodframes, 5 per day can be made, if he is devoted to make aluminum frames, 10 per daycan be made. Alex forms and cut the glass, and can make 8 m² of glass per day. Woodframe uses 0.8m of glass. Each aluminum frame and vinyl frame uses 1 m' of glass.To meet the customer demand, Viva Mirror & Deco need to produce at least 5 mirrors(regardless of types) per day. As the consultant for Viva Mirror & Deco, you need tostudy this situation. As the consultant for Viva Mirror & Deco, you need to study thissituation. (3)Due to the MCO, the supplier has increased the price of the wood. Thecompany has to absorb this cost and maintain the same selling price, andso lower the profit made for each wood-framed mirror. How would theoptimal solution change (if at all) if the profit per wood-framed mirrordecreases from RM60 to RM20.

As an Operations Management Consultant, my role is to analyze and evaluate the production processes…

Answered: (3) Due to the MCO, the supplier has…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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A recurring maintenance job in a factory is being done by a three-man crew. Due to the nature of the job and space limitations, it was observed that two of the men were idle 37% of the time; one of the men was also idle an additional of the time, and at any given time only one man was required. The men were each paid P24.00 per hour. Each time the job was performed a set of tools and equipment with a value equivalent to P36.00 per hour was used. If the three-men crew could complete the work in 5 hours, which crew size would be the most economical
.A team of 10 unloaders is employed in good reception bay of a large warehouse. During an 8 hour day 40 lorries arrive and it takes the team 10 minutes to unload each lorry. Each team member is paid RM3 per hour and it costs RM10 per hour to keep lorries waiting. Studies show that increasing the team to 14 men would reduce the unloading time to 7 minutes. Would it be worthwhile increasing the team to 14?
Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy. b.) Compute the costs of the Level Strategy c.) Compare the costs of the two strategies. Which one is superior?
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Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy.
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A diabetic patient needs at least 40 units of Vit. A, at least 30 units of Vit. C, and atleast 30 units of Vit. E each day. Each brand X multivitamin capsule contains 4 units of Vit. A, 6 units of Vit. C, and 2 units of Vit. E; each brand Y capsule contains 5 units of Vit.A, 3 units of Vit.C, and 5 units of Vit. E. If each brand X capsule costs P6.00 and eachbrand Y capsule costs P9.00, how many capsules should the patient take each day tominimize the costs? Solve using graphical method. Show complete solution.
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