Operations Management
2nd Edition
ISBN: 9781260484687
Author: CACHON, Gerard
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Concept explainers
Question
Chapter 4, Problem 1CQ
Summary Introduction
To explain: The effect on the costs of direct labor.
Expert Solution & Answer
Explanation of Solution
Correct option: (a)
Correct answer:
Costs of direct labor would be 50 percent lower.
Justification:
It is given that the process is replicated in another country in which the wages are 50% lower compared to the existing country. It is also mentioned that the staffing and processing times are identical to the existing country. Therefore, there will not be any need for the additional time required. Naturally, the direct labor costs will be 50% lower.
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Students have asked these similar questions
A process is replicated in another country where wages are 50 percent lower. Staffing and processing times are identical. What would be the effect on the costs of directlabor?a. Costs of direct labor would be 50 percent lower.b. Costs of direct labor would be the same.c. Costs of direct labor would be 50 percent higher.d. Cannot determine from the given information.
4) I am interested in opening a new car wash service. After doing research, I find these
information regarding service time, and the resources needed for each of them are described in
the table following:
Processing Time
10 min
Description
Exterior car washing and
drying
Exterior car waxing
Service
Resource Used
A. Wash
1 automated washing
machine
B. Wax
10 min
1 automated waxing
machine
1 employee
C. Wheel
Cleaning wheels
D. Interior
Detailed cleaning of all
7 min
Detailed cleaning inside car
20 min
1
ployee
cleaning
plan to offer these following options to their customers:
Option 1: Car wash only (service A).
Option 2: Car wash and waxing (services A and B).
Option 3: Car wash, waxing, and wheel cleaning (services A, B, and C).
Option 4: All four services (A, B, C, and D).
Information from market research show that customers will come at a constant rate (you can
ignore any effects of variability) of 40 customers per day. Of these customers, 40 percent buy
Option 1, 15 percent buy…
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Unit 5 Assignment
Listed below are eight terms:
4
Balanced scorecard
Return on investment
Stock options
Capital turnover
Residual income
Management compensation
Return on sales
Business process lens
Each of the following statements may (or may not) describe one of these terms. For each statement, indicate the term described, or
answer "none" if the statement does not correctly describe any of these terms.
Ask
a. Tells managers the incremental operating earnings for each additional sales dollar.
b. The focus of this business performance measurement is the sales dollars earned from each invested dollar.
C. A tool used by managers and owners of organizations to align managers' goals with those of the organization.
d. This method considers all costs borne by the consumer from purchase to disposal of a product.
A business performance measurement that takes into account the minimum required return on the assets
e.
employed.
Measures for this category of business performance are…
Chapter 4 Solutions
Operations Management
Ch. 4 - Prob. 1CQCh. 4 - Prob. 2CQCh. 4 - Prob. 3CQCh. 4 - Prob. 4CQCh. 4 - Prob. 5CQCh. 4 - Which of the following statements about takt time...Ch. 4 - Prob. 7CQCh. 4 - Prob. 8CQCh. 4 - How does the target manpower change as the demand...Ch. 4 - What happens to the target manpower if the labor...
Ch. 4 - Which of the following actions does not relate to...Ch. 4 - Prob. 12CQCh. 4 - Prob. 13CQCh. 4 - Prob. 14CQCh. 4 - Specialization typically leads to a higher average...Ch. 4 - Prob. 16CQCh. 4 - Prob. 17CQCh. 4 - Prob. 18CQCh. 4 - Prob. 1PACh. 4 - Prob. 2PACh. 4 - Prob. 3PACh. 4 - Prob. 4PACh. 4 - Prob. 5PACh. 4 - Prob. 6PACh. 4 - Prob. 7PACh. 4 - Prob. 8PACh. 4 - Prob. 1C
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