Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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- Answer for type Barrow_forwardPlease do not give solution in image format thanku Bob's candle factory is considering three different manufacturing options. Option A uses hand labor with fixed costs of $10,000 and variable costs of $2.75/candle. Option B uses a combination of hand and automation with fixed costs of $15,000 and variable costs of $1.10/candle. Option C is highly automated with fixed costs of $20,000 and variable costs of $0.75/candle. a. If demand for Bob's candles is 2500, which option should he pick, and what is the cost? b. If demand for Bob's candles is 4500 which option should he pick, and what is the cost?arrow_forward"I'm not sure we should lay out $265,000 for that automated welding machine," said Jim Alder, president of the Superior Equipment Company. "That's a lot of money, and it would cost us $78,000 for software and installation, and another $40,800 per year just to maintain the thing. In addition, the manufacturer admits it would cost $41,000 more at the end of three years to replace worn-out parts." "I admit it's a lot of money," said Franci Rogers, the controller. “But you know the turnover problem we’ve had with the welding crew. This machine would replace six welders at a cost savings of $108,000 per year. And we would save another $6,900 per year in reduced material waste. When you figure that the automated welder would last for six years, I'm sure the return would be greater than our 19% required rate of return." "I'm still not convinced," countered Mr. Alder. "We can only get $14,000 scrap value out of our old welding equipment if we sell it now, and in six years the new machine will…arrow_forward
- In an essay, suppose you are opening up an an Applebee's restaurant. describe short and long term capacity management of the process, including strategies and concpets used to adress expected customer demand.arrow_forwardA real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.43 a minute for daytime calls and $.18 a minute for evening calls. Plan B has a charge of $.53 a minute for daytime calls and $.15 a minute for evening calls. Plan C has a flat rate of $80 with 250 minutes of calls allowed per month and a charge of $.40 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 140 minutes of day calls and 60 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round each answer to the nearest whole number. Include the indifference point itself in each answer.) c. Suppose that the agent expects both daytime and evening calls. At what point…arrow_forwardA small language school has a class offering capacity of 80 students per day. Its effective capacity, however, is 64 students per day, and its actual output is 62 students per day. The operational manager would like to increase the number of students per day. Which of the following factors would you recommend that the manager investigate: quality problems, absenteeism, or scheduling and balancing? Explain your reasoning.A small language school has a class offering capacity of 80 students per day. Its effective capacity, however, is 64 students per day, and its actual output is 62 students per day. The operational manager would like to increase the number of students per day. Which of the following factors would you recommend that the manager investigate: quality problems, absenteeism, or scheduling and balancing? Explain your reasoning.arrow_forward
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