Decide whether to have one or two wash lines

Assignment Help Operation Management

Reference no: EM131225591

The manager of a car wash must decide whether to have one or two wash lines. One line will mean a fixed cost of $6,000 a month, and two lines will mean a fixed cost of $10, 500 a month. Each line would be able to process 15 cars an hour. Variable costs will be $3 per car, and revenue will be $5.95 per car. The manager projects an average demand of between 14 and 18 cars an hour. Would you recommend one or two lines? The car wash is open 300 hours a month.

Reference no: EM131225591

Questions Cloud

Describe the cloud as a cost-effective solution : Although vendors describe the cloud as a cost-effective solution to increase IT capabilities, critics describe it as marketing hype. The implementation of cloud computing to replace in-house computing generally requires: Are there other issues relate..

Large or small compared to other stakeholders : Stakeholders, as the name implies, have a stake in the project. Their interest might be large or small compared to other stakeholders. Often, their requirements are at odds with other stakeholders and the scope of the project. Discuss several strateg..

Discuss the timing for strategic moves : Identify an organization that you believe has executed optimal strategic moves to strengthen its generic strategy. Justify your selection of this organization. Identify whether to pursue offensive or defensive strategic options. Discuss the timing fo..

Food packaging plant has planned shipments : A food packaging plant has planned shipments over the next six weeks of 9500, 8500, 10000, 8800, 8200, and 9000. The plant normally operates 2 shifts per day, five days per week. During each shift, 1000 food products can be packaged and ready to ship..

Decide whether to have one or two wash lines : The manager of a car wash must decide whether to have one or two wash lines. One line will mean a fixed cost of $6,000 a month, and two lines will mean a fixed cost of $10, 500 a month. Each line would be able to process 15 cars an hour. Variable cos..

Determine the break-even point for each range : A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,000 per day, while two machines will result in a fixed cost of $3, 800 per day. Deter..

Cost-effective solution to increase IT capabilities : Although vendors describe the cloud as a cost-effective solution to increase IT capabilities, critics describe it as marketing hype. The implementation of cloud computing to replace in-house computing generally requires: List the positive results of ..

Draw the line with regard to giving and receiving gifts : Discuss your opinion of where a manager should draw the line with regard to giving and receiving gifts. How much do you believe is too much?

Arbitration is binding through conclusion : Most firms find arbitration and mediation clauses to be superior to litigation, which tends to be more costly and take longer. Of course, the potential litigant faces the same issue, so most people think carefully before suing. Arbitration is binding..

User Account

All Pages