Performance criteria important in creating a layout

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Reference no: EM1381905

Performance criteria important in creating a layout can go well beyond communication and materials handling. Identify the types of layout performance criteria that might be most important in the following settings. a. Airport b. Bank c. ClassroomThe OM Explorer and POM for Windows software is available to all students using the 10th edition of this textbook. Go to www.pearsonhighered.com/krajewski to download these computer packages. If you purchased MyOMLab, you also have access to Active Models software and significant help in doing the following problems. Check with your instructor on how best to use these resources. In many cases, the instructor wants you to understand how to do the calculations by hand. At the least, the software provides a check on your calculations. When calculations are particularly complex and the goal is in-terpreting the results in making decision, the software e ntirely replaces the manual calculations.Problems 1 and 2 apply break-even analysis (discussed in Supplement A, "Decision Making") to process decisions. 1. Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by $150,000, including the annual equivalent cost of the capital investment and the salary of one more technician. Each new patient is expected to bring in $3,000 per year in additional revenue, with variable costs estimated at $1,000 per patient. The two new chairs will allow Dr. Gulakowicz to expand her practice by as many as 200 patients annually. How many patients would have to be added for the new process to break even? 2. Two different manufacturing processes are being considered for making a new product. The first process is less capital- intensive, with fixed costs of only $50,000 per year and variable costs of $700 per unit. The second process has fixed costs of $400,000, but has variable costs of only $200 per unit. a. What is the break-even quantity, beyond which the second process becomes more attractive than the first? b. If the expected annual sales for the product is 800 units, which process would you choose? 3. Baker Machine Company is a job shop that specializes in precision parts for firms in the aerospace industry. Figure 3.13 shows the current block plan for the key manufacturing centers of the 75,000-square-foot facility. Refer to the following closeness matrix and use rectilinear d. Product designers' office e. Law firm

Reference no: EM1381905

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