Maximum capacity refers to the upper limit of : Select one : a. supplies b. rate of output c. demand d. inventories e. finances. The operation has a design capacity of 11 lo Identify four potential unethical actions or inactions related to capacity planning, and the ethical principle it violates. After evaluating Null Company's manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $15.70 per hour for the labor rate. Standard hours per unit of output 6.4 hours Standard variable overhead. The demand at the warehouses located in CA, TX, and OH are resp A company making tires for bikes is concerned about the exact width of their cyclocross tires. Blyrie Inc., a sports goods manufacturing company, follows a policy that involves manufacturing only when the demand exceeds the amount of goods already manufactured. b. the resources will be efficiently used. \\ b) A c Material delays have routinely limited production of household sinks to 480 units per day. - the firm would incur both fixed and variable costs, while when buying, the firm will only incur variable costs. When capacity is inadequate, customers can be lost. component production facilities and raw materials are important considerations. The IMF provides short-term loans to countries in financial crises. Marketing. Its effective capacity, however, is 64 repairs per day, and its actual output is 62 repairs per day. Upload your study docs or become a member. Job costing b. If the good is exported around the world at a pr, Antuan Company set the following standard costs for one unit of its product.The predetermined overhead rate $18.50 per direct labor hour is based on an expected volume of 75% of the factory's capacity, Sherfield Company uses a normal costing system, applying overhead using a single plant-wide rate. e. goods have a low value-to-weight ratio. Suppose that each unit of capital costs R and each unit of labor costs W. a. This firm is producing in the short run (remember that, A firm's production function is y=100KL where y is the output level, K is the level of capital and L is the level of labour. $10,800 C. $40,000 Based upon the information provided, what level of sales could Johnson's have obtained if it had been operating at full capacity? Most developing countries offer very competitive labor costs and availability, but many lack the infrastructure of developed countries. Gross margin. Organizations have four approaches for capacity expansion. The Besnier Company had $250 million of sales last year, and it had $75 million of fixed assets that were being operated at 80% of capacity. (round your answer to t A furniture company manufactures desks and chairs. collection of computer hardware and software arranged to transmit information from one place to another, the linking of separate networks into an interconnected network, where each network retains its own identity, Enterprise resource planning (ERP) systems, software packages designed to integrate the majority of a firm's business processes, execute all transactions related to the firm's business processes being integrated, store each piece of data only once in an enterprise-wide database, allow access to data and information in real time, and operate in a client-server environment, traditional or web-based, - store all info in a single database The replenishment level you have chosen is 50 backpacks. Centralized generation facilities in the United States currently have the capacity to generate more than 1,100 gigawatts of electric power. 13 Quiz. 5. the integration and coordination of global supply chains would not be possible without information technologies such as the Internet and enterprise resource planning systems. If the price of capital is $120 per capital and the price of labour is $30, Economies of scale occur when {Blank}. The cost of an aerobic digester system with a capacity of 140 million gallons per day (MGD) is $2.1 million. The cost of a unit of labor is $80 and the cost of a unit of capital is $20. Allowances for which of these factors would be subtracted from design capacity when calculating effective capacity? Wrong answer is provided by testbank: When fixed costs are high, one production facility will be favored. True or False: International sourcing requires a shorter capacity planning time frame compared to domestic sourcing. a. B any machine can be used if available ? 2) How does capacity utilization influence the extent of entry barriers? The environmental impacts of electricity generation can contribute to large-scale regional environmental concerns as well as localized concerns that affect the area directly surrounding a power plant. Making components in-house also allows the company more control over deliveries The process currently is: a) Capacity constrained b) Demand constrained c) Unconstrained d) Linearly constrained. AlwaysRain Irrigation, Inc., would like to determine capacity requirements for the next four years. However, many automotive manufacturing companies today use this theory. One production facility will usually be favored when a. a company is extremely profitable. C ? This imitation illustrates: a. invention. The concept of sizing your capacity throughout a process so that you smoothly and continually create your product or service at a rate consistent with customer demand is known as A community health system's nurse team consists of 12 nurses working in the local community. one production facility will usually be favored whenaripartnerconnect login 03/06/2022 / jobs at stafford leys school / en winchester' movie true story / por / jobs at stafford leys school / en winchester' movie true story / por c. unemployment is very low. All rooms operate around the clock. 5. 4. research and development, When all production system direct resources of a firm originate from and reside in only one country, When one or more of the production system direct resources originate from or are located in more than one country, Transformations applied in the production process, Movement of materials in the production system, Determining which components and raw materials should be produced in-house and which components and raw materials should be acquired from suppliers, When a firm buys components and raw materials globally, When a firm globally produces goods and services, 1. b. demand is higher than the minimum efficient scale. Indicate whether, The demand for a major product is 320, 380, 350, 430, for quarters 1,2,3,4, respectively. Now what? D) normal accounting performance. c) Large volumes of a product are manufactured. The rate of inflation in the economy over that year period is which of the following? Derive the cost-minimizing quantities of labor and capital. Normal costing c. Operations costing d. Proce, Suppose Camp Enterprises produces tents and faces wages in the labor market of $15 per hour and a rental rate of capital of $20 per hour. The price of output is $75, the wage rate is $8, and the rental rate for capital is $2 per unit. c. its average revenue is greater than $9. Centralized Generation of Electricity and its Impacts on the Procuring goods and services from suppliers carries the risk of those suppliers providing the same goods and services to direct competitors, When a firm has been making goods and services in-house, and then decides to buy these goods and services from suppliers, When the firm doing the outsourcing and the supplier that will provide the outsourced goods and services are located in the same country, When the firm doing the out-sourcing and the supplier that will provide the out-sourced goods and services are located in different countries, firm only focuses on product design and outsource all other production process functions, 1. cost and efficiency The tariffs prevailing in this industry are currently low. Identify four potential unethical actions or inactions related to capacity planning, and the ethical principle each violates. Differentiate between the strategy process and strategy content. e. transportation costs. 0.6667 c Zytel Corporation produces cleaning compounds and solutions for industrial and household use. The Albert Nock Company had $210 million of sales last year, and $(A) million of fixed assets which were being operated at 0.75% of capacity. A decrease in the economy's capacity utilization rate: a. tends to decrease the unemployment rate. The specification for the weight of a chemical in compound is \pm 0.06. The customers arrive at an average rate of 6 per hour. Spicemas Launch 28th April, 2023 - Facebook Multinational Corporation (MNC) - Overview, Characteristics, Advantages The facilities have machines and use labor that is involved in the production to ensure the optimum output. Over a period of 4 weeks, a work center produced 50, 45, 42, and 52 standard hours of work. True b. If capacity is set at 25 million tons, how much of a capacity cushion is there? copyright 2003-2023 Homework.Study.com. Reduces product cycle times BeginningoftheyearEndoftheyearAssets$60,000105,000Liabilities$20,00036,000. Briefly compare. a) Predatory pricing is easy to prove in a court of law. When the capacity of an organization to produce goods or services and the demands of its customers to purchase goods or services is not matched, then the result is inefficiency, either in under-ut AlwaysRain Imgation Inc. would like to determine capacity requirements for the next four years. The capacity of the production system defines a firm's competitive boundaries. The effective capacity of a system is only 60% of its design capacity and its actual output is 80 units a day. Finally, political considerations such as social stability, form of government and public attitudes toward foreign investment are all important in the location decision. Process A uses one person to set up the job and do the copying. b. tends to increase the unemployment rate. c. service is less profitable than manufacturing. its costs are C(x,y,z) = 3200 + 0.4x + 0,2y + 8y^2 + 0.8z A) What scale of production minimizes the ray average costs? Profits earned by producing goods and services in-house will go instead to suppliers Which model would describe your behavior? Henry Ford was once asked what colors the Model T would be available in. b. convenience for customers. $ 262,000 $ 217,000 Q 108,500 lbs. Owner made no investments in the business, but dividends were $1,250 cash per month. d. None of the above. Three sub-facilities On a given Dallas-Newark flight, there are 220 seats. Explain the distinction, A cost minimizing firm has the following production function for its product. The firm operate, A firm produces a product with labor and capital as inputs, with the production function Q = LK, Let w= 1 ad r=1 be the prices of labor and capital, respectively. Demand for the product is random, with a norm, A very low production volumes, it is likely that: a. the variable cost will form a major portion of the total cost. Which of the following has the highest value-to-weight ratio? The majority of electricity generation in the United States today is coordinated by regional system operators to ensure reliability. Two of these products were processed further. MQM 385 Elango Exam 3 Chapter 7,9,12 - Chegg d. service work is more interesting, Binegar Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). Overapplied overhead will result if: a. overhead costs incurred were greater than overhead charged to production; b. the plant is operated at less than expected capacity; c. overhead costs incurred, A firm's production function is given by Q = K^{1/2}L^{1/2} and that capital is fixed at 1 unit. Explain the process of aggregate capacity planning in service businesses. What is the ut Jill has heard that in order to improve the reliability of her supply chain that she should add a capacity cushion. b. always less than the rental price. A person of integrity has two essential characteristics: (1) knowledge about what morally constitutes the right thing to do and (2) _____ the courage to do what is right. d. is earning negative economic profit. At present, actual output averages 200. One production facility will usually be favored when a. unemployment is very low. Major consulting companies around the world have developed global supply-chain management consulting practices. b) An incumbent firm may experience a learning curve that allows it to produce at a lower cos ABC Cleaners' washing machines have a design capacity of 2,900 pounds a day. Briefly describe three strategies for expanding capacity. In addition to the impacts from power generation, there are also impacts associated with extracting, producing, and transporting certain fuels such as coal and natural gas. However, its effective capacity is 64 repairs per day, and its actual output is 62 repairs per day. If the plant efficiency is 75?%, then its effective capacity? What design capacity would be needed to achieve an actual output of 11 Henderson Corporation has received a request for a special order of 8.500 units of product XYZ for $45.40 each. 5. Most activities in operations management can be grouped into four business functions: - procurement No need to invest the money that is associated with making Blue Springs is a company that produces bottled water. c. has no impact on the unemployment rate. What is the capacity (in customers per hour) of the bakery? When companies tend to have various production facilities, they tend to prefer or favor one particular production facility Our experts can answer your tough homework and study questions. What is this rate equivalent to in U.S. dollars per gallon? c. is earning zero accounting profit. 40% b. Honey industries has $4 billion in sales and $1.6 billion in fixed assets. All other trademarks and copyrights are the property of their respective owners. What is its utilization if it processes an average of 46 loans per day? d. 1.00. Buying from suppliers could unintentionally lead to suppliers becoming competitors. What are the advantages and disadvantages of incremental versus one-step expansion? Select all that apply: (I) The master production schedule, (II) Routing information, (III) Current shop loads, (IV) Pla A work center consisting of 3 machines operates 40 hours a week. A Printed Circuit Board (PCB) machine installs integrated circuits onto a board. Mariana_Joves. Capacity planning applies only to manufacturing companies. The FIRST basic step in ethical decision-making is to= define all the facts and circumstances 3. Because of scheduled maintenance of their equipment, management feels that only 2,500 pounds of clothes can be washed in Last year, Wei Guan Inc. had $350 million of sales, and it had $270 million of fixed assets that were used at 65 percent of capacity. Suppose that each customer arrive to a bank every 20 minutes on average with variance equals to 25 and the banker serve a customer every 15 minutes with variance equals to 16. The direct materials requirement per unit is 2 ounces. The line will operate for 450 minutes per day. Consider a customer service representative who contributes more inputs to his job than his referent, but who receives the same outcomes as his referent. Provide one example of this importance in a health services environment to support your argument. Based on 4 documents. - One consideration for the one-versus-many production facilities decision is fixed costs. From: Enhanced Recovery Methods for Heavy Oil and Tar Sands, 2009 b. its marginal revenue is less than $9. This means the firm is: a) producing less output than allocative efficiency requires. Mushroom production represents one of the best examples in agriculture where pests can be controlled without the use of chemicals. Sample 1 Sample 2. Centralized generation facilities include fossil-fuel-fired power plants, nuclear power plants, hydroelectric dams, wind farms, and more. Companies that decentralize their manufacturing split their production processes into various locations or regions. July Aug. Sept. Oct. Nov. Dec. Retail demand 800 300 450 450 600 600 Dealer demand 600 750 900 1,050 1,200 1,3 How can firms make use of excess capacity? The fatigue data for a steel is given below: |Stress Amplitude (MPa)|470|440|390|350|310|290|290|290 |Cycles to Failure|1x10^4|1x10^4|1x10^5|1x10^5|1x10^6|1x10^6|1x10^7|1x10^8 a. Financial considerations such as transactions risk, translation risk, and economic risk, and government incentives are also important. If dema How to find the Max capacity of a process? Explain how capacity utilization affects product mix and profitability. Operate in a client-server environment, traditional or web-based, Simultaneously operates in multiple languages, Handles accounting standards of multiple countries, WGU_FVC1_Ch13_Global Operations and Supply-Ch, Chapter 10: The Organization of Globalization, AST109 Outermost Planets Uranus and Neptune (, Service Management: Operations, Strategy, and Information Technology, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Information Technology Project Management: Providing Measurable Organizational Value. b)are a function of the level of variable costs. It has received a huge order to supply water for a five-day convention that is taking place in the city. The beer facility has a system efficiency of 90 percent, and the utilization is 80 percent. 3. Please click here to see any active alerts. As pizza, topped with barbecue chicken, became popular at specialty restaurants, Pizza Hut and Papa John's introduced a similar pizza. A) design capacity B) effective capacity C) optimal capacity D) supply capacity. Cost of regular production = 60 $/u Cost of overtime production = 90 $/u Inventory holding cost =, A company uses a standard costing system. Solved One production facility will usually be favored - Chegg 4. Your choice strategy is to only predict your action based on what actions they took in the past. The MPK = 100L and MPL = 100K. In December, the factory produced 700 units. Final Flashcards | Quizlet Suppose the firm can hire at a wage of $40 per hour and output can be sold at $10 per unit. C&A makes two types of products using four machines from 9 a.m. to 5 p.m. each day. (b) Give an example. Assume a restaurant operates from 11 a.m. to 11 p.m. seven days per week. Theoretical capacity |b. Rio Tinto: Positive 2023 Start (OTCMKTS:RTNTF) | Seeking Alpha Although the facility can complete the entire production . As volume increases, unit costs decrease due to economies of scale and scope and learning curve effects. b. demand is higher than the minimum efficient scale. See Answer It follows that the: A. production of the 100th unit of output increases the firm's profit by $3. What should be the properties of the combination of chemicals and labor that minimizes production costs? chpt 13. a. What is the measured capacity of the work center? One production facility will usually be favored when _______. Motor X sells for $2,500 and has an efficiency rating of 9 Amy Xia's plant is designed to produce 7,000 hammers per day but is limited to making 5,600 hammers per day because of the time needed to change equipment between styles of hammers. Suppose that a car-rental agency offers insurance for a week that costs $75. one production facility will usually be favored when Some wastes contain hazardous substances. The extent to which products and services are delivered at low cost, Which company sets the price in the market place? C. full employment and actual employment. when components and raw materials are produced in-house and purchased from suppliers, - primary disadvantage of making is that it requires the company to have expertise in the production of the component or raw materials In the past month the plant produced 750 units. A computer repair service has a design capacity of 80 repairs per day. International Business CH 13 Flashcards | Quizlet Assuming the partners share income and losses in the ratio of one-third to Martin and two-thirds to Steven, how much cash will be distributed to each partner in liquidation? e. a company is extremely profitable. B. potential output and current output. D any machine can be used if available. Large international firms deal in considerable volumes of goods and often must obtain a(n) _____ from a group of banks known as a syndicate.. a.call option b.commercial loan c.open account, What is chapter 7 about? The King Company is producing two types of products: A and B. Choose the best answer below to complete the statement: A company's records indicate that it took 500 minutes to produce 1000 units of one of its products. A. lagging capacity behind demand B. building on shared experience C. fo One production facility will usually be favored when _______. Determine the utilization and the efficiency for each of these situations: A. b) gross private domestic investment is greater than depreciation. Derive the long run demands for capital and labor. - a firm could increase the complexity of its production process The wage rate in this area is w = $15, and the cost of capital is r = .05. a. a country has a comparative advantage in a good whose production is intensive in the factors that are abundantly available in that country; A company would locate the production facilities in these countries that offer the best comparative advantage, Goods with high value-to-weight ratios are expensive but do not weigh very much. Match each of the following items with one or more of the denominator-level capacity concepts by putting the appropriate letter(s) by each item: |a. As an end-to-end biomanufacturing facility, the Biologics Manufacturing Centre has the capacity to complete the entire vaccine production process - from producing the antigen that causes an immune response, to filling vials and getting them ready for shipping to their final destination. Why China Is "The World's Factory" - Investopedia The 'weights (Wi)' typically used in the numerator and denominator of the center-of-gravity computational method is: a) based on volumes. During a three-day period, the bakery made 850 loaves per day. OB) bottleneck. The Garden City Nursery Corporation currently has $40,000 in sales and is operating at 27% of full capacity. - control over quality. The products are very popular, with demands far exceeding the factory's capacity. Capacity planners must keep a narrow focus in order to stay on track. Centralized generation refers to the large-scale generation of electricity at centralized facilities. Does this production function exhibit diminishing returns t, Q=2K^{3/4}L^{1/4} Capital is fixed at 20 units.