Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Optimal Capacity Determination
For a given capacity of a plant the average unit cost of production of a product decreases as the output rate( say in number of units produced per year.) in increases figure . this happens because we known that the fixed cost incurred in the plant, machinery equipment. Remains constant through changes in the volume of output. When a large number of units of the product are produced. These fixed costs get divided uniformly in the large number of units. Therefore the average cost per unit of the product decreases.When the rate of output is increased beyond a particular limit, the average unit cost start rising because of more frequent equipment breakdowns, fatigue in workers resulting in more defective items, scheduling problems inventory problems, etc. This particular limit of the output rate is called the optimum output rate, for which the average unit cost of the product is the minimum.
Figure: Optimal Capacity Determination
There is a relationship between the optimum output rate , minimum average unit cost of a product and the capacity of the plant. As shown in figure (b) for plants with small design capacity (small sized plant ) the optimum output rate is the lowest and the minimum average unit cost of product is the highest compared to medium sized and large sized plants.Thus while determining the optimal capacity of a new facility three important factors have to be kept in min. These are the demand forecast available capital and other resources, and the minimum average unit cost desired to keep the competitors at bay.
Analyze why you think that the Securities Act of 1933 allows for an exemption to a nonprofit educational organization? The state, based on their securities regulations, could re
Gantt Load Chart The Gantt charts were developed by Henry L. Gantt about a century ago. Their purpose is to provided an immediate comparison between schedule an reality ( i,
MBTI and Keirsey Temperament Sorter Describe the challenges you foresee in using the MBTI instrument or Keirsey Temperament Sorter in a project management situation and how you wo
Explain the method of job evaluation. Method of job evaluation: Following are the methods wherein job evaluation is done:- a) Ranking method. b) Classification method.
The amount of time covered by the basic MRP record is called the _____. time bucket new horizon time horizon planning horizon
On September 1, Jennings, a used-car dealer, wrote a letter to Wheeler in which he stated, "I have a 1955 Thunderbird convertible in mint condition that I will sell you for $13,500
Cost management processes are involved in estimating, budgeting and controlling costs so that the project can be completed within the approved budget.
Please give me the references as well or I won't' complete the rating. Thank you. E-commerce is the trend that most companies are going toward now a days. You are to select one
Six Operators are to be assigned to five jobs with the cost of assignment in Rs. given 10 marks in the matrix below. Determine the optimal assignment. Which operator will have no a
a. Assign any value arbitrarily to a row or column variable u or v j . generally a value 0 zero (zero) is assigned to the first row i, e, u = 0. b.Consider every occupied cell
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd