Determining the manufacture of a product

Assignment Help Operation Management
Reference no: EM131222015

Operation Management.

A firm is about to undertake the manufacture of a product, and it is weighing three capacity alternatives: small job shop, large job shop, and repetitive manufacturing. The small job shop has fixed costs of Tk.3,000 per month, and variable costs of Tk.10 per unit. The larger job shop has fixed costs of Tk.12,000 per month and variable costs of Tk.3 per unit. The repetitive manufacturing plant has fixed costs of Tk.30,000 and variable costs of Tk.1 per unit. Demand for the product is expected to be 1,000 units per month with "moderate" market acceptance, but 2,000 under "strong" market acceptance. The probability of moderate acceptance is estimated to be 60%; strong acceptance has a probability of 40%. The product will sell for Tk.25 per unit regardless of the capacity decision. Which capacity choice should the firm make?

Reference no: EM131222015

Questions Cloud

Conducte an anova to identify significant interactions : Conduct post hocs if you have conducted an ANOVA to identify significant interactions. Even if you did not have a significant interaction in your first analysis, run post hoc/s regardless for practice.
Explain the impact of databases on businesses : Explain the impact of databases on businesses. What industry has databases made possible? Give examples of database supported business applications or technology. Please state your response in 2-3 page paper in APA format. Include citations an..
Two companies having equal influence after the consolidation : Don't all consolidations end up with one of the companies dominating? Isn't it the nature of the beast? So, did pooling of interests ever make any sense in terms of two companies having equal influence after the consolidation?
Calculate the allowable tax depreciation on this asset : In March 2015, Jones Company purchased a Mercedes for use in its business at a cost of $73,000. Assuming no bonus depreciation or Section179 deductions, calculate the allowable tax depreciation on this asset for 2015, 2016 and 2017. Depreciation meth..
Determining the manufacture of a product : A firm is about to undertake the manufacture of a product, and it is weighing three capacity alternatives: small job shop, large job shop, and repetitive manufacturing.
Do you believe that having internet access : Do you believe that having Internet access, as the author suggests, is not a convenience or luxury, but a human right? List one benefit that closing the digital divide might provide (e.g. economic growth).
What is the ebit : The revenue is $40,000, the cost of goods sold is $26,000, the selling, general and administrative expenses are $7,000, interest expense is $2,000, and depreciation is $3,000. - what is the EBIT.
Proportion of the value in many business combinations : 1- How do firms account for the wide range of intangible assets that frequently comprise a large proportion of the value in many business combinations? What is the difference, if any, between acquisition costs and direct combination expenses? What ar..
Data analysis skills and thinking : Submit a paper of at least four pages in length, excluding the title and reference pages, that includes at least two scholarly sources (in addition to the text). Explain in detail why data analysis skills

Reviews

Write a Review

Operation Management Questions & Answers

  Explain entry also exit in airline passenger business

Use competitive firm short run supply curve concept to explain entry also exit in airline passenger business. Why are pilots so well paid.

  What market is this new innovation being targeted towards

Briefly summarize the new product and some of its features. What market is this new innovation being targeted towards? What about that market created a necessity for this new innovation? How will this company handle follow-ups to this innovation? How..

  Is the information provided by reliable sources

Evaluate whether the new information is based on reliable sources and whether the information is relevant to the issue. Explain your position on the case study issue from the perspective of the role you are assuming and how this new information inf..

  Communication paths and linkages in the innovation process

Describe, explain, and potentially depict (draw a picture) of communication paths and linkages in the innovation process in the organization that you selected. Why are these paths important and why do they exist in the configuration presented?

  What reasons would amtrak have for overbooking so little

It's normal for an airline to overbook a flight by 20% or so, but Amtrak will overbook its longdistance trains only by 5% to 10%, even though they have even more noshows than the airlines do. What reasons would Amtrak have for overbooking so littl..

  Supply chain management efficiently and securely

Prepare a one page description of your Research Project interest. My research project will be on " The transitioning of the Defense Transportation System toward complementing best practices in supply chain management efficiently and securely".

  Telewonder in slovobia

Slovobia is a former Soviet Republic. It has a population of 30 million people, 35% of whom are ethnic Russians and 65% of whom are Turkic Muslims.

  Mathematical formulation of the optimization problem

The JLM Ambulance Service serves five rural towns, Abbeville, Benton, Clayton, Dunning and Eden. JLM wants to construct a centralized facility and garage to minimize its total annual travel mileage to those towns

  What kinds of programs developed to implement strategy

What Kinds of Programs (for Example, Restructuring the Corporation or Instituting TQM) Should Be Developed to Implement the Recommended Strategy

  Prepare a profit payoff table from transrail point of view

Given the information in (C) how muchwould a corportate spy be worth to Transrail to find out if Rail Freight will bid?

  How should stores do a better job of targeting promotions

A working mother just gave birth to her first child. At least twice a week, during the noon hour, she visits the same retail store, purchasing supplies for the baby. What are the pros and cons to gathering and using this kind of data? How should stor..

  Synthesize three examples of how an organizational leader

Synthesize three examples of how an organizational leader can contribute to society through his or her leadership role in their organization

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd