What is our existing output expressed in cases per year

Assignment Help Operation Management

Reference no: EM131279231

Our enterprise is currently operating 5 days per week; one 8.0 hour shift per day, 50 weeks per year. No overtime is required. We have 124 hourly workers paid an average of $18.68 per hour. Our cases produced per hour = 2500 (each containing 24 units).

Sales forecasts do not call for any added annual production.

Our Engineering manager has a proposal for a new production line that will increase output to 3200 cases per hour. The added cost of depreciation is estimated to be $500,000 per year. Additional maintenance per year is estimated to be $78,400.

What is the net savings per year [labor saved – (added depreciation and maintenance)], if the proposed line is purchased and installed?

What is the proposed net labor savings per case?

What is our existing output expressed in cases per year?

What major issue(s) must be addressed if the proposed equipment is installed?

Reference no: EM131279231

Questions Cloud

The data are representative of the actual situation : Think of a question, problem or issue in any organization. Design a study to address the issue. Be sure to discuss how you would address all aspects of data collection. How would you collect the data? How could you make sure that the data are represe..

Variable cost as a waste allowance for all categories : As a manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Last year manager Jim Freeland has advised you to..

Different stages from system design and planning : Health informatics tools and technology nowadays contribute to public health surveillance at different stages from system design and planning, data collection and management, data analysis, communication to health system response. Chose 3 stages from..

Consumer product classifications : What is the relationship between consumer product classifications and desired level of distribution? If a manufacturer could get its product sold everywhere, why would it instead choose exclusive distribution?

What is our existing output expressed in cases per year : Our enterprise is currently operating 5 days per week; one 8.0 hour shift per day, 50 weeks per year. No overtime is required. We have 124 hourly workers paid an average of $18.68 per hour. Our cases produced per hour = 2500 (each containing 24 units..

Differences are referred to as material variances : Within the manufacturing processes there are differences that occur between what the official Accounting records show for materials used versus what the Production Departments report. These differences are referred to as “Material Variances”. calcula..

Evaluate an integrated marketing communication : In your own words, summarize and provide an example of the three broad categories of tools that can be used to evaluate an Integrated Marketing Communication (IMC).

What information technology and social media skill : What information technology and social media skill sets do you believe human resource personnel should possess to bring value to the HR function and the organization? Argue why the management HR staff needs to be savvy in digital communications to fu..

Issues the inquiry into difficulty in prior positions : Alex Bussman is applying for the position of executive chef at the hospital you serve as director of human resources. The hospital has more than 800 beds and the meal service offered to the patients and visitors alike is extensive. What might be issu..

User Account

All Pages