Problem regarding the capacity decision

Assignment Help Basic Computer Science
Reference no: EM131198974

Operation Management.

A firm is about to undertake the manufacture of a product, and it is weighing three capacity alternatives: small job shop, large job shop, and repetitive manufacturing. The small job shop has fixed costs of Tk.3,000 per month, and variable costs of Tk.10 per unit. The larger job shop has fixed costs of Tk.12,000 per month and variable costs of Tk.3 per unit. The repetitive manufacturing plant has fixed costs of Tk.30,000 and variable costs of Tk.1 per unit. Demand for the product is expected to be 1,000 units per month with "moderate" market acceptance, but 2,000 under "strong" market acceptance. The probability of moderate acceptance is estimated to be 60%; strong acceptance has a probability of 40%. The product will sell for Tk.25 per unit regardless of the capacity decision. Which capacity choice should the firm make?

Reference no: EM131198974

Questions Cloud

Capacity per day for the worker : 1. Defining one flow unit as one minute of work, what is the capacity per day for the worker at "Toast" step? Round your answer to the nearest integer. Your answer is.
Reasons why policy makers might support given requirement : Explain several reasons why policy makers might support the requirement that Medicaid beneficiaries enroll in MCOs.
Explain the importance of health promotion : Explain the importance of health promotion and the impact on the nation and the world. How much should the government play a role in our health? How much should the individual take control of his or her own health?
What purpose is served by the firm''s cost function : The Chapter stresses the idea that the firm straddles input and output markets. Explain this notion. What role does the firm's cost function play as it straddles input and output markets?
Problem regarding the capacity decision : The probability of moderate acceptance is estimated to be 60%; strong acceptance has a probability of 40%. The product will sell for Tk.25 per unit regardless of the capacity decision. Which capacity choice should the firm make?
Moral obligation to promote the greater good : Christian servant leaders profess to serve those whom they lead through love and the moral obligation to promote the greater good of others.
Calculation of any fbt liability for the year ending : Advise Periwinkle of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2016. You may assume that Periwinkle would be entitled to input tax credits in relation to any..
Write a short reflective essay that examines the mission : Write a short reflective essay that examines the mission of the College and your written communication skills. The instructions to complete this assignment are as follows.
Business process engineering : Does LEAN practice concepts align closely with Business Process Engineering?

Reviews

Write a Review

 

Basic Computer Science Questions & Answers

  While budget and schedule are critical components of project

While budget and schedule are critical components of projects

  Client hosts connect directly to your routers

What measurements might you make at your router to establish that a client was not using slow start at all? If a client used slow start on startup but not after a timeout, could you detect that?

  Question regarding the protecting personal data

Your customer is a community clinic that works with families with problems of family violence. It has three sites in the same city, including a shelter for battered women and children. The director wants a computerized record and appointment syste..

  Coalition and select five member organizations

Visit the Web site of the Open Internet Coalition and select five member organizations. Then visit the Web site of each of these organizations or surf the Web to find out more information about each.

  Adopting agile development methodologies.

Agile software development practices promise marked improvement in software development productivity and quality

  Finding counterexample-algorithm based on greedy strategy

Determine a counterexample for following algorithm based on greedy strategy.

  Explaining slash dotted and flash crowd

What do terms slash dotted and flash crowd signify to?

  Calculate the bandwidth necessary for transmitting

HDCD high-definition audio of 24-bit samples at 88.2 KHz. 30 Discuss the relative performance needs of the following applications, in terms of average bandwidth, peak bandwidth, latency, jitter, and loss tolerance:

  Body mass index program

You are the nutritional coach for a local high school football team. You realize that some of the players are not up to par having returned from summer break. Realizing nutrition plays a key in a productive team, you decide to implement a Body Mas..

  Accumulation of large amounts of data from multiple sources

The systematic accumulation of large amounts of data from multiple sources

  An analysis of the security issues associated with batch fil

For this writing assignment you will be required to provide an analysis of the Security issues associated with batch files, Visual Basic and other forms of scripting.

  How to design appropriate cover page gallery

To insert a cover sheet, choose an appropriate design from the Cover Page gallery

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd