What volume indicates site a is optimal

Assignment Help Operation Management
Reference no: EM131355115

Hyundai Motors is considering three sites-A, B, and C-at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimum cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data:

Site

Annualized Fixed Cost

Variable Cost per Auto Produced

A

$10,000,000

$2,500

B

$20,000,000

$2,000

C

$25,000,000

$1,000

The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans.

a) For what values of volume, V, of production, if any, is site C a recommended site?

b) What volume indicates site A is optimal?

c) Over what range of volume is site B optimal? Why?

Reference no: EM131355115

Questions Cloud

Increase in the price of the altair chariot : a. A 20% increase in the price of the Altair chariot will cause the quantity demanded to fall by an astounding 60%. b. An increase in Gondwanaland consumers' incomes will cause prices to rise, but the total quantity demanded will also increase
Why did you choose this theory over the other theory : What concepts of the theory make it the most appropriate for the client in the case study?Why did you choose this theory over the other theory?What will be the goals of counseling and what intervention strategies are used to accomplish those goals?Is..
Particular product for the country imposing the tariff : What is the effect of a tariff on a particular product for the country imposing the tariff?
What is the main objective of probability theory : What is the main objective of probability theory in the context of modeling observable stochastic phenomena of interest.
What volume indicates site a is optimal : Hyundai Motors is considering three sites-A, B, and C-at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. What volume indicates site A is optimal
Chronic disease in us as a political economy problem : Explain how the Union of concerned Scientists analyzes chronic disease in the US as a political economy problem. How would their cost-benefit approach to agricultural policy save $11 trillion?
Developing balanced investment portfolio for a fund manager : FIN201 - Investment Management - Developing a Balanced Investment Portfolio for a Fund Manager - Illustrate your analysis, particularly performance history, with appropriate tables, charts and graphs, and where appropriate with illustrative example..
Calculate the change of surface tension : The surface tension of water, in dynes per centimeter is given by the empirical equation.- Calculate the change of surface tension with respect to temperature θ, dγ/dθ , at 10° C and 60° C.
Define scarcity-give two examples : Define scarcity, give two examples, and explain how it is a major world economic problem.

Reviews

Write a Review

Operation Management Questions & Answers

  Compare the treatment of mental illness in the medical model

Compare the treatment of mental illness in the medical model, the public health model, and the human service model. Which model provides the best treatment or approach in your opinion? Why?

  Dispute could have taken to avoid litigation

Discuss the major issues addressed in the case you found. Explain the contract law that the court applied to the case and why. Then, determine at least one (1) action in drafting the contract that either company to the dispute could have taken to avo..

  Steadily increasing over past decade-transportation function

The growth in the use of 3PLs has been steadily increasing over the past decade. As stated in the text, there are often good reasons to outsource all or part of the transportation function, but there are also downside risks. As the VP for Logistics i..

  Define the competitive bidding trap

Under what conditions does competitive bidding normally assure the buying manager of obtaining the lowest possible price? Based on the case, define the “competitive bidding trap.” Under what conditions may a buying firm fall into the “competitive bid..

  Describe inspection-how do inspection and prevention differ

What does Control Quality monitor and what does it compare the results to? Describe inspection.? How do inspection and prevention differ? What is attribute conformity? What is the resulting decision from attribute measurement results?

  Can product management and new product development

Can product management and new product development, place and development of the channel systems, and distribution customer service and logistics be apply or not apply to the business environment? Can they be introduced into daily work?

  What is the standard deviation of demand during lead time

What is the standard deviation of the demand during lead time? (recall from statistics that standard deviation is equal to the square root of variance and also that there are only rules for variances).

  Gifts and inheritances are excluded from gross income

Exclusions from gross income are the same as deductions from gross income. Gifts and inheritances are excluded from gross income. Interest on state and municipal bonds is included in gross income. In the case of a deceased employee, up to $5000 of em..

  When dealing with aggregate planning

When dealing with aggregate planning: Create and submit a 2 column table of the tradeoffs you can see needing to be addressed in the first column, and to the right of it in the second column, how you would go about breaking or mitigating the tradeoff..

  Vietnam without full-scale national mobilization

Explain and evaluate the Johnson administration’s decision to wage the war in vietnam without full-scale national mobilization. What were the reasons for this choice, and what were the consequences?

  Worker adjustment and retraining notification act

The local textile plant has a workforce of 55 full-time hourly workers, 12 part-time workers (less than 15 hours per week), and six managers that are salaried. The company has been struggling for about five years and has just lost its only major acco..

  What are the economic and social consequences of prohibiting

What are the economic and social consequences of prohibiting the replacement of economic strikers?

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