Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Suppose company’s manufacturing facility has a design maximum of 245 clients per week. Its actual output is 185 and its efficiency is 70%.
a. Calculate its capacity utilization.
b. Calculate its effective output
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- d) If the firm operates 11 hours per day, 20 days per month, the monthly capacity of the manufacturing process is ??? units (enter your response as a whole number).arrow_forwardCalculate Capacity utilization whereas: Design Capacity per hr is 11,080 Units Effective Capacity per minute is 138 Units Actual Output per min is 109 Units Daily working hrs is 12 hrs per Shift with 300 working days annuallyarrow_forwardBaker Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. 5 2 3 4 123 125 127 126 Year Forecast Demand Currently the manufacturer has eight machines that operate on a two-shift (eight hours each) basis. Twenty days per year are available for scheduled maintenance of equipment. Assume there are 250 workdays in a year. Each manufactured good takes 20 minutes to produce. 1 106 a. What is the effective capacity of the factory? Round your answer down to the nearest whole number and use this answer in subsequent computations. Year Additional machines needed units/year b. Given the five-year forecast, how much extra capacity is needed each year? Round your answers to the nearest whole number. Year 1 2 3 Extra capacity needed (units) c. Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number. 1 2 3 4 5 5arrow_forward
- What is CAPACITY REQUIREMENTS FORECASTING?arrow_forwardA loan processing operation that processes an average of 8 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 9 loans per day. a. Calculate the Utilization b. Calculate the Efficiencyarrow_forwardWhat are some capacity measures and constraints for each of the following? University Hospital Computer repair shop Farm The company you work for on one that you know well. Give a brief description of what the firm does then evaluate the capacity measures and constraints that exist for capacityarrow_forward
- Using the multiplicative seasonal method find the seasonal factor for each quarter of the given year ( round 2 decimals)arrow_forwardHow did they get 48?arrow_forwardIncreasing the project's scope or adding unnecessary features are both undesirable outcomes. Help your reader follow your reasoning by outlining the differences between the two ideas. Please elaborate on your reasoning for assuming that the same issue underlies both of these complaints. If these two things happened while working on this project, what type of disaster might it cause?arrow_forward
- Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. 1 2 3 4 5 86 90 Year Forecast demand Currently the manufacturer has seven machines that operate on a two-shift (eight hours each) basis. Thirty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 20 minutes to produce. a. What is the effective capacity of the factory? Round your answer down to the nearest whole number. units, year b. Given the five-year forecast, how much extra capacity is needed each year? Use a minus sign to enter an answer, if there is excess capacity, Round your answers to the nearest whole number. Year 1 Additional machines needed 2 1 24 Extra capacity needed (units) C. Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number. 4 3 4 5 PEarrow_forwardA manager facen peak (weekly) demand for one of her operations, but is not sure how long the peak will last She can either use overtime from the current workforce, or hirelayoff one temporary worker and just pay regular-time wages Regular-time pay is $500 per week overtime is 5800 per week, the hiring cost is $3,000, and the layoff cost is $2,000 Use breakeven analysis to solve this problem What is the fixed cost for the regular time option?S Enter your reaponae as an integer)arrow_forwardWestern Wheels produces industrial-grade wheels for local and international markets. Their factory can produce at most 1800 wheels per week. If the factory wants to achieve an utilization 89%, what should be the output of the factory next week? Please round final answer to nearest integerarrow_forward
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