Support the operations manager''s position

Reference no: EM131413856

Elemental Electronics

Elemental Electronics assembles microcomputers and acts as wholesalers for some components. For the manufacturing business, they buy components from a number of suppliers and assemble them in a well-tried design. They do virtually no research and development, and are happy to use designs that have been tested by other manufacturers. They also spend little on advertising, preferring to sell computers through their website and a few specialised retailers. As a result they have very low overheads and can sell their machines at a much lower cost than major competitors. A typical component that Elemental buys is a standard motherboard. There are at least six suppliers of equivalent boards in America, Europe and the Far East. Elemental acts as a wholesaler for two of these - one in the Far East and one in South America. The boards are delivered in bulk and Elemental tests and repackages them to sell to a number of small manufacturers. Each board from the Far East takes 2 hours to test and 2 hours to repackage, while each board from South America takes 3 hours to test and 1 hour to repackage. Elemental has enough facilities to provide up to 8,000 hours a week for testing and 4,000 hours a week for repackaging. There are maximum sales of 1,500 a week for the board from the Far East and each board gives a profit of €20 when sold. On the production side, Elemental manufactures 4 models of computer (A to D). Each of these has 4 stages in manufacturing - sub-assembly, main assembly, final assembly and finishing. The following table shows the times needed for each stage, total availability each week and some related costs.

Fixed costs of production are r3 million a year and Elemental works a standard 48-hour week.

Question

1. Elemental Electronics works in a very competitive industry. Their operations manager has suggested that they should use linear programming more explicitly in their production planning. With the limited information about their operations, could you build a case to support the operations manager's position?

Reference no: EM131413856

Questions Cloud

Which tools should be used only for cutting wire : Exam: 006026RR- Which of the following tools should be used only for cutting wire? Which of the following metals is the best electrical conductor, but isn't used in wire because of its extremely high cost?

Keynesian model with partially sticky prices : Consider a Keynesian model with partially sticky prices. Suppose households become more cautious regarding cash holdings. What can we say about the interest rate when this change occurs?

What does the report author blame for the problems : In summary, what does the report's author blame for the problems encountered on the Big Dig project? As an expert, to what extent do you think the author has got things right? Based on your knowledge of what it takes to manage major programs, how w..

Find musical composers inspired by poetry and by philosophy : Determine whether you prefer Debussy or Mahler after listening to works by each at the Websites below or in this week's Music Folder and after reading about them.

Support the operations manager''s position : Fixed costs of production are r3 million a year and Elemental works a standard 48-hour week.

Identify major historical developments : Support your ideas with specific, illustrative examples. If there are questions or points associated with your chosen topic, be sure to answer all of the listed questions and address all of the items in that topic. If your topic asks you to do sev..

Determine the key components of supply chain management : Determine the key components of supply chain management for the company you have selected. Determine three (3) major issues that could affect the structuring, sourcing, purchasing, and the supply chain of your organization. Provide a solution to ..

How far from the end of the conduit should you put the mark : Exam: 006015RR: Using 1/2-inch EMT and a hand bender, you want to make a bend with a 14-inch stub-up. How far from the end of the conduit should you put the mark that will line up with the bender arrow?

Analyze approach of apple in their global marketing efforts : Analyze the approach of Apple in their global marketing efforts. Analyze through each of the six cultural dimensions.

User Account

All Pages