Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 5, Problem 10P
A.J.’s Wildlife Emporium manufactures two unique birdfeeders (Deluxe and Super Duper) that are manufactured and assembled in up to three different workstations
- Using the traditional method, which bases decisions solely on a product’s contribution to profits and overhead, what is the optimal product mix and what is the overall profitability?
- Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Draw a flow chart depicting the ordering process for delaing with telephone orders at One Book-Music Store
XYZ Leather Company manufactures and sells two products, wallets and belts, in its two-department plant. Operating data pertaining to the two products are as follows:
Wallets Belts
Selling price per unit P30 P50
Cost per unit:
Variable manufacturing costs P8 P15
Variable marketing costs P2 P3
Fixed manufacturing costs P5 P5
Fixed marketing costs P6 P1
Cutting Finishing…
Tuff-Rider, Inc., manufactures touring bikes and mountainbikes in a variety of frame sizes, colors, and component com-binations. Identical bicycles are produced in lots of 100. Theprojected demand, lot size, and time standards are shown inthe following table:
Item Touring MountainDemand forecast 5,000 units/year 10,000 units/yearLot size 100 units 100 unitsStandard processing time .25 hour/unit .50 hour/unitStandard setup time 2 hours/lot 3 hours/lot
The shop currently works 8 hours a day, 5 days a week,50 weeks a year. It operates five workstations, each producingone bicycle in the time shown in the table. The shop main-tains a 15 percent capacity cushion. How many workstationswill be required next year to meet expected demand withoutusing overtime and without decreasing the firm’s currentcapacity cushion?
Chapter 5 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. 5 - Take a process that you encounter on a daily...Ch. 5 - Prob. 2DQCh. 5 - How could the efficiency of the redesigned process...Ch. 5 - Bill’s Barbershop has two barbers available to...Ch. 5 - Melissa’s Photo Studio offers both individual...Ch. 5 - Figure 5.11 details the process flow for two types...Ch. 5 - Prob. 4PCh. 5 - Super Fun Industries manufactures four top-selling...Ch. 5 - Prob. 6PCh. 5 - Yost-Perry Industries (YPI) manufactures a mix of...
Ch. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - A.J.’s Wildlife Emporium manufactures two unique...Ch. 5 - Cooper River Glass Works (RGW) produces four...Ch. 5 - Quick Stop Pharmacy is a small family-owned,...Ch. 5 - Use the longest work element rule to balance the...Ch. 5 - Johnson Cogs wants to set up a line to serve 60...Ch. 5 - Refer back to Problem 16. Suppose that in addition...Ch. 5 - To meet holiday demand, Penny’s Pie Shop...Ch. 5 - A paced assembly line has been devised to...Ch. 5 - Prob. 20PCh. 5 - Greg Davis, a business major at the University of...Ch. 5 - Prob. 1VCCh. 5 - Which boarding scenario among the different ones...Ch. 5 - How should Southwest evaluate the gate boarding...Ch. 5 - How will Southwest know that the bottleneck had...
Additional Business Textbook Solutions
Find more solutions based on key concepts
2. Identify four people who have contributed to the theory and techniques of operations management.
Operations Management: Sustainability and Supply Chain Management (12th Edition)
2. Identify four people who have contributed to the theory and techniques of operations management.
Operations Management
There is a huge demand in the United States and elsewhere for affordable women’s clothing. Low-cost clothing re...
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
There is a huge demand in the United States and elsewhere for affordable women’s clothing. Low-cost clothing re...
Operations Management
Feeding America Each year, the Feeding America network helps provide food to more than 46 million people facing...
Operations and Supply Chain Management 9th edition
What is precedent, and how does it affect common law?
Business in Action (8th Edition)
Knowledge Booster
Learn more about
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
- Recall "Tommy's Dresses to go" case. Three years after, this company still rents designer dresses to customers, but it has managed to streamline its internal processes and expand to different segments of demand. Now, customers can rent clothes for anywhere between 1 days to 30 days, and each customer is sent only one (1) dress (instead of 2 dresses described in the case). The company alsó takes only 13 number of days to turn around a dress (i.e., this the duration starting with return from a customer, to again being rented out to a customer). The current demand is an average of 1,000 customers per day, and the company owns total of 30 thousand dresses. What is the average rental duration? (i.e., what is the average number of days, a customer keeps a dress).arrow_forwardWhat is one important advantage of a Make-To-Stock process? Group of answer choices Can respond quickly to customer demand Creates greater flexibility Less likely to have obsolete inventory More environmentally sensitivearrow_forwardThe Chineke Group of Company manufactures two products, namely product B and product P, and provides you with the following information: Prod. B Prod. P Selling price per unit 80.00 50.00 Less cost of sales: Direct material A @ R5.00 per kg 15.00 10.00 Direct material B @ R4.00 per kg 8.00 12.00 Direct labour @ R6.00 per hour 12.00 6.00 Variable manufacturing overhead @ R5.00 per labour hour 10.00 5.00 Fixed manufacturing overhead per unit 5.00 5.00 Gross profit 30.00 12.00 Less sales & administrative costs: Variable 6.00 4.00 Fixed 10.00 5.00 Net profit per unit 14.00 3.00 Take note of the following constraints: Material A available 360 kg Material B available 360 kg Labour hours available…arrow_forward
- 2) BAQARAH Milk is fresh cow’s milk from Bangladesh’s first industrial hi-tech dairy farm which is equipped with the most advanced technology for milking cows and processing milk. All the cows are purebred Holstein Friesian from Australia. The farm ensures that milk is hygienically produced without human touch from milking to packing. It is instantly pasteurized to preserve the milk quality. The key features of BAQARAH milk is pure, fresh, low fat, free of antibiotic, free of toxin and of global standard. a) Which pricing strategy will be applicable for this product- price skimming or pricing penetration? Justify your position with three proper logics. b) In the given situation, which stage of buying decision process of consumers the company is trying to influence and how?arrow_forwardBhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: January 1 Quantity (pounds) January 31 Quantity (pounds) Work-in-Process Inventory Cost Cost Molding department Finishing department None None 5,000 $ 15,000 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Direct Costs of Production Materials Conversion Molding department Finishing department $ 450,000 $ 90,000 80,290 The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Required: 1. Prepare…arrow_forwardOUTDOOR ADVENTURE: WHITE WATER AND CAMPING SUPPLIES(NETWORKED COMPUTER SYSTEM AND MANUAL PROCEDURES)Outdoor Adventure is a Montana-based wholesaler of rafting andcamping equipment that serves outdoor sports camping retailers throughout the northwest. You have been hired by Outdoor Adventure toevaluate its processes, risks, and internal controls. The followingparagraphs describe Outdoor Adventure's expenditure cycle procedures.Purchases System The process begins when the purchasing clerk checks the inventorysubsidiary ledger on his computer terminal each morning. When anitem is deemed to be too low, the clerk selects a vendor from the validvendor file and prepares a digital purchase order. The clerk prints two hard copies: one copy is sent to the vendor, and the other is filed in thedepartment. Digital purchase order record is added to the PO File.When the goods arrive in the receiving department, the receiving clerkinspects them and reconciles the items against the information in…arrow_forward
- 1. Which of the following quantities has no effect on the first period’s ATP calculation? a) Current on-hand Inventory b) Booked customer orders for the first periods c) MPS quantity for the first period d) Forecasted demand for the first period 2. Which one of the following is an MRP lot-sizing rule that attempts to minimize the amount to minimize the amount of average inventory? a) Periodic order quantity (POQ), WITH P=2 b)Fixed order quantity (FOQ) c) Economic order quantity (EOQ) d)Lot for Lot (L4L). 3. Which of the following statements about lot-sizing rules for MRP is true? a) The periodic order quantity (POQ) rule generates a higher level of average inventory since it creates inventory remnants. b) FOQ is a dynamic lot-sizing rule which reduces the amount of inventory, by doing a better job of matching the order quantity to the projected on-hand inventory quantity. c) The lot for lot rule minimizes inventory investment but maximizes the number of orders placed. d) In…arrow_forwardCreate a business scenario/description. 2) Based on the business description created, construct an Order Processing flow chart that is appropriate for the business.arrow_forwardWhich of the following statements are correct about services and service design? Select ALL which are true. 1) Services can be more easily automated and transported than products. ) 2) The service delivery system should be designed primarily around the employees in the system. ) 3) Low-contact services can usually be made more efficient than high-contact services. 4) A service is produced and consumed simultaneously (at the same time).arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY