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.
Define the term total quality management in short. Total quality management (TQM): Total quality management is the procedure of embracing a quality conscious philosophy o
Conway just received his contractor's license in the state of Virginia. For years, Conway did light construction work for a few commercial accounts. He was very successful and had
Why do organizations need to calculate a threshold for a reorder? How could this affect sales?
Legacy Systems and Improvements Please respond to the following: •From the e-Activity, discuss the challenges legacy systems pose for enterprise system integration. Provide specifi
APPLYIING EBQ MODEL, WHAT BATCH SIZE WOULD YOU RECOMEND FOR THIS PRODUCT
In considering the price part of the 4Ps, and the customer demand aspect of that, I'd like you to leave this course knowing about "elasticity of demand". Can you explain how that c
Leaders must be held accountable for achieving desired results. What does this mean to you?
The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Amber Gardner's software firm: DEMAND Decision LOW
For this week's discussion you are to post responses to the following questions: 1. how is planning changing in the new workplace? 2. Do you think planning becomes more important o
Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an average of 7 loans per day. The operation has a design c
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