Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 1, Problem 7CQ
Summary Introduction
Case summary:
Person H and 400 co-workers were terminated from a company as a result of downsizing. She tried for another job for almost 8 months. However, she could not able to find a job. Hence, she thought making money by mowing the lawns of her neighbors. After so many rejections from the job search, she decided to make it as her business.
In the initial stages, it was little slow. However, after few months, most of the neighbors preferred Person H to mow their lawns over professional lawn care services. Other services performed by Person H are shrubbery, trimming, fertilizing lawns, and weeding gardens.
To determine: The ideas to make the operations sustainable.
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Hahn Manufacturing purchases a key component of one of its products from a local supplier. The current purchase price is $1,500 per unit. Efforts to standardize parts succeeded to the point that this same component can now be used in five different products. Annual component usage should increase from 150 to 750 units. Management wonders whether it is time to make the component in-house rather than to continue buying it from the supplier. Fixed costs would increase by about $40,000 per year for the new equipment and tooling needed. The cost of raw materials and variable overhead would be about $1,100 per unit, and labor costs would be $300 per unit produced.
so What is the break-even quantity?
Chapter 1 Solutions
Operations Management
Ch. 1.6 - Prob. 1RQCh. 1.6 - Prob. 2RQCh. 1.6 - Prob. 3RQCh. 1.9 - There is a huge demand in the United States and...Ch. 1.10 - Prob. 1OTQCh. 1.10 - Prob. 2OTQCh. 1.10 - Prob. 3OTQCh. 1 - Prob. 1DRQCh. 1 - Prob. 2DRQCh. 1 - Prob. 3DRQ
Ch. 1 - List five important differences between goods...Ch. 1 - Briefly discuss each of these terms related to the...Ch. 1 - Prob. 6DRQCh. 1 - Prob. 7DRQCh. 1 - Why is the degree of customization an important...Ch. 1 - List the trade-offs you would consider for each of...Ch. 1 - Prob. 10DRQCh. 1 - Why might some workers prefer not to work in a...Ch. 1 - Prob. 12DRQCh. 1 - Prob. 13DRQCh. 1 - Prob. 14DRQCh. 1 - Prob. 15DRQCh. 1 - Prob. 16DRQCh. 1 - Prob. 17DRQCh. 1 - What are trade-offs? Why it careful consideration...Ch. 1 - Prob. 2TSCh. 1 - Prob. 3TSCh. 1 - Prob. 1CTECh. 1 - Prob. 2CTECh. 1 - Prob. 3CTECh. 1 - Prob. 4CTECh. 1 - Prob. 1CQCh. 1 - Prob. 2CQCh. 1 - What are some of the trade-offs that Hazel...Ch. 1 - The town is considering an ordinance that would...Ch. 1 - Prob. 5CQCh. 1 - Prob. 6CQCh. 1 - Prob. 7CQ
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- John was asked to review a new computer part that is going to be manufactured in fivedifferent locations around the world. He is asked to try to figure out how to save somemoney as the part is just a little bit too expensive to make at this time. However, researchof their customers indicates there is a strong market for the product. Two of the plant managers get together and figure out a way to replace part of theproduct with a much cheaper material, making the product more affordable tomanufacture. Quality significantly goes down with the cheaper part. It is more likely to break on theconsumer in the first year of use. John reports this to his boss. We need this product and we have insurance to cover us if we need to do a major recall.Sign it tomorrow, John. We need to go into production by the end of next month. Wereally need to go forward with this to keep two plants open. John’s boss asks him to ‘sign off’ on the modifications because company protocolrequires a corporate…arrow_forwardWhat activities are involved in the operations function?How does operations interact with other functional areas?arrow_forwardWhat are the components of an operations strategy, and how do they contribute to the company's practical strategies?arrow_forward
- How can an operations strategy analysis be done on product/service development?arrow_forwardOperations Strategy: Discuss the different competitive priorities (e.g., cost, quality, delivery) that companies can focus on in their operations strategy. How can a company achieve a balance between these priorities?arrow_forwardHow do you devise an operations strategy that aligns with a 30-year-old furniture store and the current competitive advantage strategy?arrow_forward
- Tried and True’s accountant (from Problem 1-1) suggeststhat monthly rent and hourly wage rate also be factoredinto the productivity calculations. Annandale pays thehighest average wage at $6.75 an hour. Blacksburg pays$6.50 an hour, Charlottesville $6, and Danville $5.50. Thecost to rent store space is $1800 a month in Annandale,$2000 a month in Blacksburg, $1200 a month in Charlottesville, and $800 a month in Danville.a. Which store is most productive?b. Tried and True is not sure it can keep all four stores open.Based on multifactor productivity, which store would youclose? What other factors should be considered?arrow_forwardWhy does one choose a career in operations management?arrow_forwardPick a company that you are familiar with and describe its operations strategy and how it relates to winning customers. Describe specific activities used by the company that support the strategy.arrow_forward
- Discuss alliances or partnerships a company might have with other companies to support its operations management strategy.arrow_forwardDescribe the drawbacks or a value based planning in operations ?arrow_forwardState some of the competitive tradeoffs that may arise in a fast- food restaurant.arrow_forward
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