OPERATIONS MANAGEMENT
OPERATIONS MANAGEMENT
2nd Edition
ISBN: 9781260238877
Author: CACHON
Publisher: RENT MCG
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Chapter 1, Problem 8PA
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To determine: The dry cleaners that are not on the efficient frontier.

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A large city in the mid-West needs to acquire a street-cleaning machine to keep its roads looking nice year-round. A used cleaning vehicle will cost $85,000 and have a $20,000 market (salvage) value at the end of its five-year life. A new system with advanced features will cost $150,000 and have a $40,000 market value at the end of its five-year life. The new system is expected to reduce labor hours compared with the used system. Current street-cleaning activity requires the used system to operate 8 hours per day for 20 days per month. Labor costs $50 per hour (including fringe benefits), and MARR is 12% per year.]
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Because service organizations require high-touch relationships with customers, which of the following characteristics of the service organization is most important to meeting this requirement? Hiring and training Customized services Flexible systems Adjustable capacity
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