Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Question
The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown:
|
Site
|
Fixed Cost Per Year
|
Variable Cost per Unit
|
||
|
1
|
$600
|
|
$11.00
|
|
|
2
|
$1,000
|
|
$5.00
|
|
|
3
|
$2,100
|
|
$3.00
|
|
Part 2
a) After rounding to the nearest whole number, site 1 is best below
units.
67
550
0
67
Part 3
After rounding to the nearest whole number, site 2 is best between
and
units.
67
550
0
67
550
67
550
0
Part 4
After rounding to the nearest whole number, site 3 is best above
units.
550
67
0
550
Part 5
b) If the demand is
.
57
units, then the best location for the potential manufacturing plant is
SITE 1
SITE 3
SITE 2
SITE 1
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A Small Introduction about Manufacturing
- Manufacturing is the most common way of transforming natural substances or parts into completed merchandise using instruments, human work, hardware, and compound handling.
- Manufacturing is indispensable to the economy. Most items were handcrafted utilizing human work and fundamental instruments before the Industrial Revolution.
- Manufacturing is a course that spends significant time in how individuals utilize present-day manufacturing frameworks with a prologue to manufacturing innovation and its relationship to society, people, and the climate.
- The materials are adjusted during different manufacturing cycles to make the completed item.
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