Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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You are the foreperson of a processing plant that produces Vidalia onion relish. The
relish is produced in an assembly line plant with stations with the following
characteristics:
Station
Min Crew
Station Capacity
Max Crew Wage Rate
Labor
Standard
Receiving
Sorting
Chopping
Mixing
Bottling
Boxing/Shipping
Administration
2
5000 lb/hr
4
$8.00/hr
1,500 lb/hr
2
6,000
5
$7.50
1,000
3,000
1,500
1
6,000
2
$8.00
2
$8.50
5,000
5,000
4
1
2
$9.50
2,500
2
9,000
4
$7.00
1,500
2
$20.00
Utilities at the plant run at $50/hr regardless of the plant speed.
1.
Construct the total labor cost curve for this plant using the economic engin-
nering approach outlined in class. Report the costs in a table and on a graph (doesn't
need to be perfectly to scale) for quantities 0 to 5000 lb/hr.
Assume that your relish has two ingredients: onion and spices. The onion
costs $0.50 per pound, the spices cost $0.25 per jar, the jar costs $0.05, and the case
for 12 jars costs $0.25. Each jar holds one pound of relish which requires 2 pounds of
onion. Use your answer from problem 1 (remember to factor in utility costs) to find
the total variable cost per hour and average variable cost per pound for the relish when
2.
q = 5000 lb/hr.
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Transcribed Image Text:You are the foreperson of a processing plant that produces Vidalia onion relish. The relish is produced in an assembly line plant with stations with the following characteristics: Station Min Crew Station Capacity Max Crew Wage Rate Labor Standard Receiving Sorting Chopping Mixing Bottling Boxing/Shipping Administration 2 5000 lb/hr 4 $8.00/hr 1,500 lb/hr 2 6,000 5 $7.50 1,000 3,000 1,500 1 6,000 2 $8.00 2 $8.50 5,000 5,000 4 1 2 $9.50 2,500 2 9,000 4 $7.00 1,500 2 $20.00 Utilities at the plant run at $50/hr regardless of the plant speed. 1. Construct the total labor cost curve for this plant using the economic engin- nering approach outlined in class. Report the costs in a table and on a graph (doesn't need to be perfectly to scale) for quantities 0 to 5000 lb/hr. Assume that your relish has two ingredients: onion and spices. The onion costs $0.50 per pound, the spices cost $0.25 per jar, the jar costs $0.05, and the case for 12 jars costs $0.25. Each jar holds one pound of relish which requires 2 pounds of onion. Use your answer from problem 1 (remember to factor in utility costs) to find the total variable cost per hour and average variable cost per pound for the relish when 2. q = 5000 lb/hr.
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