Operations Management
Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 3, Problem 5CQ

You observe a long line at the airport security. The process currently is

  1. a. capacity-constrained.
  2. b. demand-constrained.
  3. c. unconstrained.
  4. d. linearly constrained.
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You observe a long line at the airport security. The process currently is:a. capacity-constrained.b. demand-constrained.c. unconstrained.d. linearly constrained.
Spartan Castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur $350,000 of fixed cost and add $50 of variable cost to each casting Spartan produces. The second process has fixed costs of $150,000 and adds $90 of variable cost per casting.a. What is the break-even quantity beyond which the first process is more attractive?b. What is the difference in total cost if the quantity produced is 10,000?
Discuss the concept of sensitivity analysis in system modeling. Why is sensitivity analysis important, and how is it performed?

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