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The Ambrosia Bakery makes cakes for freezing and subsequent sale. The bakery, which operates five days a week, 52 weeks a year, can produce cakes at the rate of 116 cakes per day. The bakery sets up the cake-production operation and produces until a predetermined number has been produced. When not producing cakes, the bakery uses its personnel and facilities for producing other bakery items. The setup cost for a production run of cakes is $700. The cost of holding frozen cakes in storage is $9 per cake per year. The annual demand for frozen cakes, which is constant over time, is 6000 cakes. Determine the following:
a. Optimal production run quantity (Q)
b. Total annual inventory costs
c. Optimal number of production runs per year
d. Optimal cycle time (time between run starts)
e. Run length in working days.
Now, suppose you were a design engineer that worked on the Ford Pinto, after hearing about the rear-end crash tests of early prototype, you go to the Chief Engineer and voice your concern over the design.
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Luthans and Doh (2012) discuss two major forms of communication flow. Briefly describe why it is important to know if an organization uses upward communication or downward communication.
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What is the difference between a condition precedent and a condition subsequent? Under what types of conditions could a party claim discharge by commercial impracticability?
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Discuss the privacy issues a company will face, when implementing an ecommerce website, and propose the solutions necessary to address these issues according to any legal and professional regulations that apply to the firm.
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