The average monthly fixed cost per site is RM 25,500, while each unit cost RM 78 to produce and selling price is RM 180 per unit. C ? Assume Baldwin's product Bid invests in increasing its capac You are playing rock-pass-scissors with a friend. A firm wants to minimize the total cost of producing 100 tons of dynamite. What are the benefits of an organization utilizing global production? Henry Ford was once asked what colors the Model T would be available in. Location of Production Facilities for Components and Raw Materials. c) are low in proportion to variable costs in the short run. Which of the following is a correct statement? B. normal capacity. d. fixed costs are low. Centralized generation facilities include fossil-fuel-fired power plants, nuclear power plants, hydroelectric dams, wind farms, and more. The MPK = 100L and MPL = 100K. During the month the company purchased and used 600 units of this material at a price of $2.25 per unit. $ 262,000 $ 217,000 Q 108,500 lbs. The process of assessing a company's ability to produce enough output to satisfy market demand is called capacity planning. The Garden City Nursery Corporation currently has $40,000 in sales and is operating at 27% of full capacity. One production facility will usually be favored when a. a company is extremely profitable. 1. Item B is a component part of Item A which is a finished product ready for retail sales. 3. A foreign wholesaler offers to purchase 2,000 scales at $15 each. Given the following diagram, a. Taylor_Harsha. Explore capacities and facilities planning, the importance of planning, and a deeper look at facility planning. b. The products are very popular, with demands far exceeding the factory's capacity. Now what? Assume a restaurant operates from 11 a.m. to 11 p.m. seven days per week. Some wastes contain hazardous substances. 1. In an economy experiencing growing production capacity: a) depreciation is greater than gross private domestic investment. Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Below are the transaction records for eight weeks to item. - any problems global businesses face are due to scandals regarding their products originated in substandard supply chains, because some companies in the supply chain could not trace back to suppliers the faulty components in the defective products. Capacity Factor, Consider an apparel company in business of Fast Fashion (frequently changing trendy clothes). Consider a customer service representative who contributes more inputs to his job than his referent, but who receives the same outcomes as his referent. Match each of the following items with one or more of the denominator-level capacity concepts by putting the appropriate letter(s) by each item: |a. $10,800 C. $40,000 Based upon the information provided, what level of sales could Johnson's have obtained if it had been operating at full capacity? The production process may consist of one or more transformations which could be all of the following: a. 4. How well can customers have needs satisfied? . The firm has cash of $12,000 and office equipment of$13,000. e. goods have a low value-to-weight ratio. - Another location consideration is the infrastructure that the country offers. What is its utilization if it processes an average of 46 loans per day? Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. Compute the capacity in parts per hour of the following: A. The production budget for year 1 was based on 200,000 units of output. OB) bottleneck. Does this production function exhibit diminishing returns t, Q=2K^{3/4}L^{1/4} Capital is fixed at 20 units. The output gap is the difference between: A. aggregate supply and aggregate demand. The firm can purchase all the capital and labor it wants at prices r and w, respective, A competitive firm has a production function described as follows. A .gov website belongs to an official government organization in the United States. A furnace repair team services an average of 10 furnaces a day. What are the inputs to CRP process? State true or false and justify your answer: For a food-processing plant such as Kraft Foods, capacity refers to the number of employees working on an assembly line. D) normal accounting performance. As volume increases, unit costs decrease due to economies of scale and scope and learning curve effects. A) job shop production process B) small batch production process C) assembly-line production process D) continuous flow production process, A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 24,600 units of output each month. One production facility will usually be favored when _______. _____ refers to the management of the direct resources that are involved in the production system of a business, Tipton Manufacturing is based in Lexington, Kentucky. However, its fixed assets were used at only 75% of capacity. To maximize profit, management should rank products based on their: \\ a. All rooms operate around the clock. Execute all transactions related to the firm's business processes being integrated \text{End of the year} \ldots\ldots\ldots & \text{105,000} & \text{36,000}\\ b. Consider a four-step serial process with processing times given in the list below. d. the fi, Jabriel Corporation uses a standard cost system in which it applies manufacturing overhead (MOH) on the basis of direct labor- hours (DLH). True b. How fast can sales grow before any new fixed assets are needed? The bank has 3 tellers and on average, it takes 2 minutes to service a customer. The wage rate in this area is w = $15, and the cost of capital is r = .05. a. An adjustable-rate mortgage contract should specify what? C. practical capacity. Tipton Manufacturing is practicing, One production facility will usually be favored when. D any machine can be used if available. If the design capacity is 15 furnaces a day and the effective capacity is 13 furnaces a day, what is the utilization of the system? Create an account to browse all assetstoday. The replenishment level you have chosen is 50 backpacks. 5. incur both fixed and variable costs, determining if the making will be done at one or more production facilities and if these facilities should be located in one or more countries, Considerations for Location of production facilities for components and raw materials, 1. when fixed cast are high one production facility will be favored This imitation illustrates: a. invention. 6. b. d. strategy. Both products are produced on the same machining operation. the integration and coordination of global supply chains would not be possible without information technologies such as the Internet and enterprise resource planning systems. b. identifying capacity gaps. This firm is producing in the short run (remember that, A firm's production function is y=100KL where y is the output level, K is the level of capital and L is the level of labour. 1. procurement Hotels c. Cruise lines d. All of the above. The machine can pack 500 units on $200 cost. Monthly holding cost are 15%. The capacity is 0.4 unit per minut You observe a long line at C&A Bakery with customers leaving every 4 minutes. B) Common stock and long-term debt are tied directly to sales. A. Allocating production capacity to meet demand at a minimum cos, Flip had sales of $10,000 (100 units at $100 per). - Another consideration is the notion of the minimum efficient scale and its comparison to demand. Managers use capacity planning to [{Blank}] . At the beginning of the year, budgeted (estimated) manufacturing overhead costs totaled $400,000, budg, A firm whose price is below its average cost: a. is earning positive economic profit. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. True or false? Explain. A. direct materials cost B. direct labor cost C. manufacturing overhead cost D. period cost, Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. c. No dividends were paid during the year, but the owner did invest an additional$55,000 cash in exchange for common stock. When evaluating a firm with excess capacity, what is true? The hours scheduled are 80, and 72 hours are actually worked. Effective capacity is the ______. chpt 13. The firm's production function for gadgets, X, depends on the amounts of capital (K), and labor (L) employed: X = 56K + 8.8L - 2K2 - 0.1L2. Motor X sells for $2,500 and has an efficiency rating of 9 Amy Xia's plant is designed to produce 7,000 hammers per day but is limited to making 5,600 hammers per day because of the time needed to change equipment between styles of hammers. Allowances for which of these factors would be subtracted from design capacity when calculating effective capacity? A firm produces three goods (x,y,z) in a fixed proportions (0.5,0.3,0.2). The demand at the warehouses located in CA, TX, and OH are resp A company making tires for bikes is concerned about the exact width of their cyclocross tires. The environmental impacts of electricity generation can contribute to large-scale regional environmental concerns as well as localized concerns that affect the area directly surrounding a power plant. What does Kevin O'Neal, as an expatriate, bring to Dubai? Last year, 17,800 purc A company manufactures a product using machine cells. What are some of the pros and cons of pursuing identified community needs as part of a strategic planning process? b) gross private domestic investment is greater than depreciation. Systematic capacity planning includes the following steps except: a. estimating future capacity requirements. Production and sales were: - Weight Sales Additional processing costs P 317,000 lbs. The office equipment is sold for only $4,000. Long-term capacity decisions that confront managers include all of the following except: a. workforce size b. capital c. equipment. If dema How to find the Max capacity of a process? d. tends to Wonder Women Cosmetics currently has $21,900 in sales and is operating at 45% of the firm's capacity. Step 1: 34 minutes per uni Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. Product B only visits machines 1 and 3. Process A uses one person to set up the job and do the copying. The Best Beer Corporation has a beer-processing facility in Columbus, Ohio. At present, your company only makes metal components. What was the factor A system has one service facility that can service 10 customers per hour. a. - Another consideration is the notion of the minimum efficient scale and its comparison to demand. A. lagging capacity behind demand B. building on shared experience C. fo One production facility will usually be favored when _______. D. t Last year National Aeronautics had a FA/Sales ratio of 40%, comprised of $250 million of sales and $100 million of fixed assets. Which of the following would be one of his responsibilities? b. AssetsLiabilitiesBeginningoftheyear$60,000$20,000Endoftheyear105,00036,000\begin{matrix} 3. sinks per day ? Owner made no investments in the business, and no dividends were paid during the year. c. the average fixed cost will be lost, The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. Which of the following assumptions is embodied in the AFN equation? In 1 week, a work center produces 75 standard hours of work. Th, A certain company uses a single raw material in its production process. b) manage, A producer is hiring 20 units of labor and 6 units of capital (bundle A). The environmental impacts of electricity generation can contribute to large-scale regional environmental concerns as well as localized concerns that affect the area directly surrounding a power plant. Gross margin. "Weekly output is the square root of the minimum of the number of units of capital and the number of units of labour employed per wee, The [{Blank}] allows a company to capture the highest economies of scale. Large international firms deal in considerable volumes of goods and often must obtain a(n) _____ from a group of banks known as a syndicate.. a.call option b.commercial loan c.open account, What is chapter 7 about? Select one: a. copyright 2003-2023 Homework.Study.com. True or false? The firm uses two factors of production - chemicals and labor. Very high assets and turnover. Advantages of incineration. The legislation was rushed through Congress and enacted without any delay. Step 1: 26 minutes per unit An assembly line with 17 tasks is to be balanced. Two of these products were processed further. The system that businesses use to produce products, A production system in which goods dominate the value of the product, A production system in which services dominate the value of the product, Goods and services that integrate a product, -Management of the direct resources that are involved in the production system of a business organization Can't find the question you're looking for? The East Midvale Textile Company produces denim and brushed-cotton cloth. Last year saw 15,000 customer orders at the mill and the manager has a new John Battle Creek Cereal Company has four main products: Corn Flakes, Frosted Flakes, Bran Flakes and Strawberry Flakes. After evaluating Null Company's manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $15.70 per hour for the labor rate. You have two plants: one in CO and the other in SC. Related Diversification iv. From here, the librarie Battonkill Company, operating at full capacity, sold 124,200 units at $63/unit in 2014. In millions, by how much could Wei Guan's sales increase before For the next six months, Kurtz Company projects the following information (in units). Capacity planning applies only to manufacturing companies. (a) If the firm can sell any output at a price equal to 10, A firm's production function is given by: F(L,K) =L^1/4K^3/4. chantyreys. Using appropriate strategy framework(s) to graphically represent your answer and support your detailed argument: Carry out an Industry Analysis of the retail food sector in South Africa. The average time for waiting during the production process and materials handling is 0.15 days. C&A makes two types of products using four machines from 9 a.m. to 5 p.m. each day. Time spent in labor rooms varies from An aircraft manufacturer is developing a preliminary cost estimate for building a 300 MW fossil-fuel powerplant. - The best run companies usually have the best supply chain. It has received a huge order to supply water for a five-day convention that is taking place in the city. 7. Total ove. a) The minimum efficient scale is the -smallest level of output needed to attain all economies of scale and minimum long-run average total cost. Concerns regarding the visibility of all aspects of supply chains and the traceability of materials along supply chains were focused upon. a) Find the equation for the firm's, Suppose that you are in the short-run and the production function for your firm is given as: F(L,K)=K^1/2 L^1/2 Also, in the short-run capital is fixed at K=16. In a 4-week period, it actually worked 355 hours and produced 475 standard hours of work. 7. Capacity planners must keep a narrow focus in order to stay on track. In a job shop, effective capacity is only 45 percent of design capacity, and actual output is 54 percent of effective output. e. transportation costs. 2. Share sensitive information only on official, secure websites. 2. Currently, two production lines are in place for making bronze and plastic sprinklers. Choose the best answer below to complete the statement: A company's records indicate that it took 500 minutes to produce 1000 units of one of its products. Calculate the marginal and average products of labor when the level of capital is fixed at 16 and the firm use. True or false? 3. more control over deliveries How mu (a) What is the fundamental distinction between design capacity and effective capacity? \\ A) available capacity B) calculated workloads for other work centers C) the cost of exp Stating capacity in dollar amounts generally results in a consistent measure of capacity. Which of the following is not one of the ways in which a firm may pursue a learning curve steeper than the industry average? Air pollution from burning fuel often includes carbon dioxide, sulfur dioxide, nitrogen oxides, mercury, and particulate matter. Course Hero is not sponsored or endorsed by any college or university. Wrong answer is provided by testbank: When fixed costs are high, one production facility will be favored. C. 8 percent. Consider the following two mutually exclusive alternatives, related to an improvement project, and recommend which one should be implemented. 3. value-to-weight ratio, goods with high value-to-weight ratios are expensive but do not weigh very much a) The firm is currently producing 100 units of output. A facility arrangement in which the product stays in one place and workers and machinery move to it as needed. In a job shop, effective capacity is only 49 percent of design capacity, and actual output is 64 percent of effective output. Therefore, the electricity delivered to consumers by their local electric utility may be generated at a centralized power plant located in another city or state and owned by a different company. View full document c. its average revenue is greater than $9. i. Determine the term being described or defined by the following statement: The difference between resources used and resources supplied. JavaScript appears to be disabled on this computer. A firm's production function is qi = 4*Ki.2Li.4. When capacity is inadequate, customers can be lost. Provide a Ghanaian example each for the following grand strategies. XYZ Corporation operates in a market that produces a homogeneous good. The Best Beer Corporation has a beer-processing facility located in Columbus, Ohio. The effective capacity is 40 engines per day. Procuring goods and services from suppliers can also carry the risk of suppliers providing those same goods and services to the competition. Explain the distinction, A cost minimizing firm has the following production function for its product. A value equal to the capacity. b) An incumbent firm may experience a learning curve that allows it to produce at a lower cos ABC Cleaners' washing machines have a design capacity of 2,900 pounds a day. Excess capacity arises when firms cannot sell all of their output at the current market price. 6. complete protection of intellectual property, 1. requires the expertise in the production of the component or raw material The following are the common characteristics of multinational corporations: 1. One of the reasons companies manufacture their products in China is because of the abundance of lower-wage workers available in the country. 4. Centralized generation facilities in the United States currently have the capacity to generate more than 1,100 gigawatts of electric power.
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