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[Cost-Volume Analysis] A small producer of music boxes wants to move to a larger facility. Two alternative facilities have been found. Site 1 has a fixed cost of $500,000 per year, with a variable cost of $25 per unit. Site 2 has a fixed cost of $800,000 per year, but a variable cost of $22 per unit.
a. Write out the equation for total cost for each site.
b. At what volume of output would the two locations have the same total cost?
c. For what range of output would Site 1 be superior?
d. For what range of output would Site 2 be superior?
In operations management, as in life, a balanced approach is often best policy. One of best examples of benefits of this in operations management is lean approach. Explain basic factors that must be in place in order to achieve a balanced lean sys..
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Gelato Company is a franchisor. Sue operates a Gelato Company franchise. Ralph is one of Sue's employees. As a franchisor, if Gelato Company controls the day-to-day operations of the business to a significant degree, it may be liable for tortious act..
How is safety stock included in a material requirements plan?
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A machine can operate for an average of 13 weeks before it needs to be overhauled, a process which takes 2 days. The machine is operated 5 days a week. Compute the availability of this machine.
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