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.
Outline performance criteria that is important in creating a layout . Identify the types of layout performance criteria that might be most important in the following settings. a -
what is production and operation management?
The numbers of patient arrivals to the ER department at a local hospital for the past 5 weeks are: week: 1 , 2 , 3 , 4 , 5 arrivals: 405 ,420 , 400 , 380 , 411 a) Compute a three-w
1. To what extend does lean manufacturing help GM to control production to meet customer needs, and how does this help to make GM competitive? 2. Do you think the implementation
The Systems development life cycle (SDLC) is
Explain how personal selling can help solve the problem of information overload.
Explain the term Total Quality Management (TQM). Total Quality Management (TQM): It is a system approach to quality in all spheres of the organisation. TQM implies meeting th
Hello Sir, This is Riddhi Trivedi I, am Faculty of Commerge and Management. Subject is there Materials & Production Management, but i want a perfect reference book where i get all
What are some of the possible reasons Scott did not seek or receive advice from her immediate supervisor?
Give examples of a pair of companies in an industry that pursue different types of business models? Explain the business models and how they differ. EXAMPLE. First come first serve
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