Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 7P
Summary Introduction
To determine: The preferred process for TU person of UM Company.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 x 50
equals the total rooms rented for the year). Tim's cost to clean a room is $12.50 The Duffy's Maid Service quote is $18.50 per room plus a fixed cost of $26,000 for sundry items such as uniforms with the motel's
name. Tim's annual fixed cost for space, equipment, and supplies is $60,000.
Based on the given information related to costs for each of the options, the crossover point for Tim =
room nights (round your response to the nearest whole number)
4
Tim Urban, owner/manager of Urban's
Motor Court in Key West, is
considering outsourcing the daily
room cleanup for his motel to Duffy's
Maid Service. Tim rents an average of
50 rooms for each of 365 nights (365 x
50 equals the total rooms rented for
the year). Tim's cost to clean a room is
$13.50. The Duffy's Maid Service quote
is $19.00 per room plus a fixed cost of
$26,000 for sundry items such as
uniforms with the motel's name. Tim's
annual fixed cost for space,
equipment, and supplies is $65,000.
Based on the given information related
to costs for each of the options the
crossover point for Tim = room nights (
round your answer to the nearest
whole number). If the number of room
nights is less than the crossover point
the (not outsourcing, outsourcing) is
the best option available to Tim. Based
on the given room nights that Tim
expects to rent (18,250) the best option
is (outsourcing, not outsourcing).
Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for
his motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 × 50 equals the total
rooms rented for the year). Tim's cost to clean a room is $13.00. The Duffy's Maid Service quote is $19.00 per room
plus a fixed cost of $26,000 for sundry items such as uniforms with the motel's name. Tim's annual fixed cost
for space, equipment, and supplies is $61,000.
Based on the given information related to costs for each of the options, the crossover point for Tim =
(round your response to the nearest whole number).
If the number of room nights is less than the crossover point, then
Tim.
Based on the given room nights that Tim expects to rent (18,250), the best option is
room nights
is the best option available to
Chapter 7 Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Ch. 7.S - Prob. 1DQCh. 7.S - Prob. 2DQCh. 7.S - Prob. 3DQCh. 7.S - How is actual, or expected, output computed?Ch. 7.S - Explain why doubling the capacity of a bottleneck...Ch. 7.S - Distinguish between bottleneck time and throughput...Ch. 7.S - Prob. 7DQCh. 7.S - Prob. 8DQCh. 7.S - Prob. 9DQCh. 7.S - Prob. 10DQ
Ch. 7.S - Explain how net present value is an appropriate...Ch. 7.S - Prob. 12DQCh. 7.S - What are the techniques available to operations...Ch. 7.S - Amy Xias plant was designed to produce 7,000...Ch. 7.S - For the past month, the plant in Problem S7.1,...Ch. 7.S - If a plant has an effective capacity of 6,500 and...Ch. 7.S - Prob. 4PCh. 7.S - Material delays have routinely limited production...Ch. 7.S - Prob. 6PCh. 7.S - Southeastern Oklahoma State Universitys business...Ch. 7.S - Under ideal conditions, a service bay at a Fast...Ch. 7.S - A production line at V. J. Sugumarans machine shop...Ch. 7.S - A work cell at Chris Ellis Commercial Laundry has...Ch. 7.S - The three-station work cell Illustrated in Figure...Ch. 7.S - The three-station work cell at Pullman Mfg., Inc....Ch. 7.S - The Pullman Mfg., Inc., three-station work cell...Ch. 7.S - Klassen Toy Company, Inc., assembles two parts...Ch. 7.S - Prob. 15PCh. 7.S - Prob. 16PCh. 7.S - Markland Manufacturing intends to increase...Ch. 7.S - Using the data in Problem S7.17. a. What is the...Ch. 7.S - Given the data in Problem S7.17, at what volume...Ch. 7.S - Janelle Heinke, the owner of HaPeppas!, is...Ch. 7.S - Prob. 21PCh. 7.S - Prob. 22PCh. 7.S - Prob. 23PCh. 7.S - Prob. 24PCh. 7.S - Prob. 25PCh. 7.S - As a prospective owner of a club known as the Red...Ch. 7.S - Prob. 27PCh. 7.S - James Lawsons Bed and Breakfast, in a small...Ch. 7.S - Prob. 33PCh. 7.S - Prob. 34PCh. 7.S - Prob. 35PCh. 7.S - What is the present value of 5,600 when the...Ch. 7.S - Prob. 37PCh. 7.S - Prob. 38PCh. 7.S - Bolds Gym, a health club chain, is considering...Ch. 7.S - Prob. 1VCCh. 7.S - Prob. 2VCCh. 7.S - Prob. 3VCCh. 7 - What is process strategy?Ch. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - What is process redesign?Ch. 7 - Prob. 5DQCh. 7 - Name the tour quadrants of the service process...Ch. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Identify manufacturing firms that compete on each...Ch. 7 - Identify the competitive advantage of each of the...Ch. 7 - Prob. 11DQCh. 7 - Identify the competitive advantage of each of the...Ch. 7 - Prob. 13DQCh. 7 - Prob. 14DQCh. 7 - Prob. 15DQCh. 7 - Explain what a flexible manufacturing system (FMS)...Ch. 7 - Prob. 17DQCh. 7 - Prob. 18DQCh. 7 - Prob. 19DQCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Ski Boards, Inc., wants to enter the market...Ch. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Metters Cabinets, Inc., needs to choose a...Ch. 7 - Prob. 10PCh. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Rochester Manufacturings Process Decision...Ch. 7 - Prob. 2CSCh. 7 - Prepare the case for an optimistic sales manager...Ch. 7 - Prob. 1.1VCCh. 7 - Prob. 1.2VCCh. 7 - Prob. 1.3VCCh. 7 - Prob. 1.4VCCh. 7 - Prob. 2.1VCCh. 7 - Prob. 2.2VCCh. 7 - Process Strategy at Wheeled Coach Video Case Video...Ch. 7 - Prob. 2.4VC
Knowledge Booster
Similar questions
- Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 × 50 equals the total rooms rented for the year). Tim's cost to clean a room is $12.50.The Duffy's Maid Service quote is $18.00 per room plus a fixed cost of $26,000for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $65,000. Part 2 Based on the given information related to costs for each of the options, the crossover point for Tim = room nights (round your response to the nearest whole number). Part 3 If the number of room nights is less than the crossover point, then is the best option available to Tim.arrow_forwardK Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 x 50 equals the total rooms rented for the year). Tim's cost to clean a room is $13.00. The Duffy's Maid Service quote is $18.00 per room plus a fixed cost of $25,000 for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $65,000. Based on the given information related to costs for each of the options, the crossover point for Tim = (round your response to the nearest whole number). room nights elparrow_forwardPlease no written by hand solutionsarrow_forward
- Handy-Maid Cleaning Service is considering off ering anadditional line of services to include professional offi ce cleaning.Annual fi xed costs for this additional service are estimated tobe $9000. Variable costs are estimated at $50 per unit of service.If the price of the new service is set at $80 per unit of service,how many units of service are needed for Handy-Maid to breakeven?10. Easy-Tech Soft ware Corporation is evaluating theproduction of a new soft ware product to compete with thepopular word processing soft ware currently available. Annualfi xed costs of producing the item are estimated at $150,000, andthe variable cost is $10 per unit. Th e current selling price of theitem is $35 per unit, and the annual sales volume is estimated at50,000 units.(a) Easy-Tech is considering adding new equipment thatwould improve soft ware quality. Th e negative aspect ofthis new equipment would be an increase in both fi xedand variable costs. Annual fi xed costs would increase by$50,000 and…arrow_forwardA manager is trying to decide whether to purchase a certain part or to have it produced internally.Internal production could use either of two processes. One would entail a variable cost of $17 perunit and an annual fixed cost of $200,000; the other would entail a variable cost of $14 per unitand an annual fixed cost of $240,000. Three vendors are willing to provide the part. Vendor A hasa price of $20 per unit for any volume up to 30,000 units. Vendor B has a price of $22 per unit for demand of 1,000 units or less, and $18 per unit for larger quantities. Vendor C offers a price of$21 per unit for the first 1,000 units, and $19 per unit for additional units.a. If the manager anticipates an annual volume of 10,000 units, which alternative would be bestfrom a cost standpoint? For 20,000 units, which alternative would be best?arrow_forwardAnswer for type Barrow_forward
- A biotech firm is considering abandoning its old plant, built 23 years ago, andconstructing a new facility that has 50% more square footage. The original cost of the old facility was $300,000, and its capacity in terms of standardizedproduction units is 250,000 units per year. The capacity of the new laboratoryis to be 400,000 units per year. During the past 23 years, costs of laboratoryconstruction have risen by an average of 5% per year. If the cost-capacity factor, based on square footage, is 0.80, what is the estimated cost of the newlaboratory?arrow_forwardBorges Machine Shop, Inc. has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle Owner Luis Borges hopes the contract will be extended and the volume increased next year Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM) The cost data follow Annual contracted units Annual fixed cost General Purpose Equipment (GPE) 200.000 $150.000 $15.00 Per unit variable cost The option GEE is best when the contracted volume is below units (enter your response as a whole number) Flexible Manufacturing System (FMS) 200,000 $250.000 $14.00 Dedicated Machine (DM) 200.000 $525,000 $13.00arrow_forwardt K Beth Zion Hospital has received initial certification from the state of California to become a center for liver transplants. The hospital, however, must complete its first 10 transplants under great scrutiny and at no cost to the patients with the hospital picking the expenses. The cost per hour of surgery is estimated to be $5,000. The very first transplant, just completed, required 27 hours. On the basis of research at the hospital, Beth Zion estimates that it will have an 75% learning curve. Using Table E.3, estimate the time it will take to complete: a) the 10th transplant 10.40 hours (round your response to two decimal places). Learning Curve Coefficients Unit Number (N) 10 b) The cost of 10th surgery to Beth Zion Hospital = $ 52000 (round your response to the nearest whole number). c) the first 10 transplants hours (round your response to two decimal places). Unit Time .385 75% Total Time 5.589 Unit Time .477 80% Total Time 6.315 Unit Time .583 85% Total Time 7.116 Xarrow_forward
- Finding the Break-Even QuantityA hospital is considering a new procedure to be offered at $200 per patient. The fixed cost per year would be $100,000, with total variable costs of $100 per patient. What is the break-even quantity for this service? Use both algebraic and graphic approaches to get the answer.arrow_forwardA manufacturer plans to introduce a new shirt based on the following information. The selling price is $57.00; variable cost per unit is $18.00; fixed costs are $7800.00; and capacity per period is 500 units. b) Draw a detailed break-even chart, making sure to label the variables on the y- and x-axes, as well as all other significant points in the chart c) Showing your calculations, calculate the break-even point (in units) if fixed costs are reduced to $7020arrow_forwardQ3) Case study below: Checkers plans to open its first “dark store” later this year to support growing demand for its Sixty60 on-demand grocery app. A dark store is a retail outlet that exists exclusively to support on-demand deliveries. It does not have a store front or retail customers, but purely assists with order fulfilment.It will be in Bree Street in Cape Town’s central business district, and comes as the group considers the capacity of its store base to meet the growing demand from SA’s leading grocery app.The Checkers Sixty60 one-hour delivery service was launched in November 2019 and order volumes continue to grow exponentially. It is already available in 300 locations across the country - up from 233 locations last year. About 23 000 products are on offer at in-store prices and it has created almost 6 300 jobs, according to Checkers. The need for such a store format is due to Checkers limiting the number of Sixty60 deliveries it can support from each retail store, which is…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,