Capacity of the factory and capacity level ratio needs to be determined with the use of given information. Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

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Answer 1

Question

Chapter 10, Problem 6PA

(a)

Summary Introduction

Interpretation:Capacity of the factory and capacity level ratio needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

(b)

Summary Introduction

Interpretation:Capacity of the factory and capacity level ratio needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

(c)

Summary Introduction

Interpretation:Additional number of machines needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

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A manager must whether to buy machine A or B. Machine costs are as follows: A $52,000 each; B $100,000 each Product forecast and processing times on the machines are as follows Processing Time per unit (minutes) Product Annual Demand A B 1 8,000 2 18,000 3 10,000 Assume that only purchasing costs are being considered. Which machine would have the lowest purchase cost and how many of that machine would be need? Machines operate 8 hours a day 250 days per year. The machines differ in hourly operation costs. The A machines have an hourly operating cost of $12 each and B machines have an hourly operating cost of $30 each. What is the operating cost per year and which alternative should be selected to minimize total cost (for the first year) while satisfying the processing requirements? Edit Format Table 12pt v Paragraph v BIUA ev T?v||: MacBook Air esc 80 888 DII F1 F2 F3 F4 F5 F6 F7 FR @ # $ % 1 2 3 4 5 7 8. Q W E R T Y A S D F G < CO

A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows: Machine CostA $40,000B $30,000C $80,000Product forecasts and processing times on the machines are as follows: Processing Time per Unit (minutes) Product Annual Demand A B C 1 16000 3 4 2 2 12000 4 4 3 3 6000 5 6 4 4 30000 2 2 1 a.) Assume that machines operate 10 hours a day, 250 days a year. If we only consider purchasing costs, which machine would have the lowest total cost? b.) Assume machines operate 10 hours a day, 250 days a year. If we select machine A, how many machine A do we need? (Use common sense to decide the answer.)

A manager must decide which type of machine to buy, A, B, or C. Machines costs are as follows: Machine Cost A $40,000 B $30,000 C $80,000 Product forecast, processing times on the machines, and setup times are as follows: Processing Time Per Unit (minutes) Product Annual Demand A B C Setup Times (minutes) Production Lots (units) 1 16,000 3 4 2 20 200 2 12,000 4 5 3 35 100 3 6,000 5 6 3 60 50 4 30,000 2 4 1 15 500 Machines operate 10 hours a day, 250 days a year. The manager wants to have a capacity cushion of 10%. a. Assume that only purchasing costs are being considered. Which machines would have the lowest total cost, and how many of that machines would be needed? b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $11 each, B machines have an hourly operating cost of $10 each, and C machines have an hourly operating cost of $12 each. Which alternative would…

Answer 2

Question

Chapter 10, Problem 6PA

(a)

Summary Introduction

Interpretation:Capacity of the factory and capacity level ratio needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

(b)

Summary Introduction

Interpretation:Capacity of the factory and capacity level ratio needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

(c)

Summary Introduction

Interpretation:Additional number of machines needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

Expert Solution & Answer

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Answer 3

Question

Chapter 10, Problem 6PA

(a)

Summary Introduction

Interpretation:Capacity of the factory and capacity level ratio needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

(b)

Summary Introduction

Interpretation:Capacity of the factory and capacity level ratio needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

(c)

Summary Introduction

Interpretation:Additional number of machines needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

Expert Solution & Answer

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Answer 4

Question

Chapter 10, Problem 6PA

(a)

Summary Introduction

Interpretation:Capacity of the factory and capacity level ratio needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

(b)

Summary Introduction

Interpretation:Capacity of the factory and capacity level ratio needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

(c)

Summary Introduction

Interpretation:Additional number of machines needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

Expert Solution & Answer

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Answer 5

Chapter 10, Problem 6PA

(a)

Summary Introduction

Interpretation:Capacity of the factory and capacity level ratio needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

(b)

Summary Introduction

Interpretation:Capacity of the factory and capacity level ratio needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

(c)

Summary Introduction

Interpretation:Additional number of machines needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

Answer 6

Chapter 10, Problem 6PA

(a)

Summary Introduction

Interpretation:Capacity of the factory and capacity level ratio needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

Answer 7

Chapter 10, Problem 6PA

(a)

Summary Introduction

Interpretation:Capacity of the factory and capacity level ratio needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

Answer 8

(b)

Summary Introduction

Interpretation:Capacity of the factory and capacity level ratio needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

Answer 9

(b)

Summary Introduction

Interpretation:Capacity of the factory and capacity level ratio needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

Answer 10

(c)

Summary Introduction

Interpretation:Additional number of machines needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

Answer 11

(c)

Summary Introduction

Interpretation:Additional number of machines needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 10 - Prob. 1DQ Ch. 10 - Prob. 2DQ Ch. 10 - Prob. 3DQ Ch. 10 - Prob. 4DQ Ch. 10 - Prob. 5DQ Ch. 10 - Prob. 1PA Ch. 10 - Prob. 3PA Ch. 10 - Prob. 4PA Ch. 10 - Prob. 5PA Ch. 10 - Prob. 6PA

Capacity of the factory and capacity level ratio needs to be determined with the use of given information. Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

Concept explainers

Videos

Interpretation:Additional number of machines needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

Want to see the full answer?

Chapter 10 Solutions

Capacity of the factory and capacity level ratio needs to be determined with the use of given information. Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

Concept explainers

Videos

Interpretation:Additional number of machines needs to be determined with the use of given information. Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.

Want to see the full answer?

Chapter 10 Solutions

Interpretation:Additional number of machines needs to be determined with the use of given information.

Concept Introduction: Capacity measurement is an important concept which helps companies to make long term and short-term decisions related to capacity and thus plan for contingencies.