Centralized generation refers to the large-scale generation of electricity at centralized facilities. A) underproduce; underprice B) underproduce; overprice C) overproduce; underprice D, A firm is producing an output such that the benefit from one more unit is more than the cost of producing that additional unit. Explain. (round your answer to t A furniture company manufactures desks and chairs. The best-run firms usually have the best supply chain, in that superior supply-chain management: Drives standardization and centralization Provide a Ghanaian example each for the following grand strategies. From: Enhanced Recovery Methods for Heavy Oil and Tar Sands, 2009 B. production of the 100th unit, For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $7. A cost minimizing firm has the following production function for its product. c. demand is higher than the minimum efficient scale. The capacity is 0.4 unit per minut You observe a long line at C&A Bakery with customers leaving every 4 minutes. Calculate the mass, in grams, of 0.824 moles of lead. The line will operate for 450 minutes per day. One production facility will usually be favored when a. a company is extremely profitable. E) Output falls below minimum marginal costs. IB -- Ch. Operations. The company's standards call for 2 DLHs for each unit produc, Companies that produce large numbers of standardized products within a particular batch would most likely use which type of costing? Currently two production lines are in place for making bronze and plastic sprinklers. Yesterday the clinic was open for 9 hours and treated 758 patients. Consider the following two mutually exclusive alternatives, related to an improvement project, and recommend which one should be implemented. The total value of the world market for this product over the next 10 years is estimated to be between $10 and $15 billion. The wage rate w = 4 and the rental price of capital r = 4 are taken as parameters (fixed) by the f. A manufacturing company supplies its bricks to industrial job sites. \text{End of the year} \ldots\ldots\ldots & \text{105,000} & \text{36,000}\\ Assuming the partners share income and losses in the ratio of one-third to Martin and two-thirds to Steven, how much cash will be distributed to each partner in liquidation? b. Procuring goods and services from suppliers carries the risk of those suppliers providing the same goods and services to direct competitors, When a firm has been making goods and services in-house, and then decides to buy these goods and services from suppliers, When the firm doing the outsourcing and the supplier that will provide the outsourced goods and services are located in the same country, When the firm doing the out-sourcing and the supplier that will provide the out-sourced goods and services are located in different countries, firm only focuses on product design and outsource all other production process functions, 1. cost and efficiency Explain why capacity is important. Unit cost is $55.75. All rights reserved. For November, the company's flexible budget for manu, Suppose that a firm's production function is : Q=4K^{1/2}L^{1/2} The cost of a unit of labor is $5 and the cost of a unit of capital is $20. Under what conditions would Zona Co.'s subsidiary consider using a lagging Can you think of any ways in which a short-term shortage of production facilities of a manufacturer might be overcome? Select all that apply: (I) The master production schedule, (II) Routing information, (III) Current shop loads, (IV) Pla A work center consisting of 3 machines operates 40 hours a week. - represent each business function by a module (accounting module, finance, operations, HR, Marketing) copyright 2003-2023 Homework.Study.com. Can your father do so? d. a company is extremely profitable. 7. financial considerations In an economy experiencing growing production capacity: a) depreciation is greater than gross private domestic investment. Decreases customer response times Product B only visits machines 1 and 3. Explain how a restaurant could use this information in attempting to appeal to the student market. However, its effective capacity is 64 repairs per day, and its actual output is 62 repairs per day. The electricity generated by centralized generation is distributed through the electric power grid to multiple end-users. Choose the best answer below to complete the statement: A company's records indicate that it took 500 minutes to produce 1000 units of one of its products. Can't find the question you're looking for? Location of Production Facilities for Components and Raw Materials. Explain the distinction, A firm produces output y using two factors of production (inputs), labour L and capital K. The firm's production function is f(L,K) = 1 2 ln(L) + 1 2 ln(K). The firm's production function for gadgets, X, depends on the amounts of capital (K), and labor (L) employed: X = 56K + 8.8L - 2K2 - 0.1L2. Some impacts vary based on the energy resourcefor example, whether the power plant uses fossil fuel or a renewable resource. Finally, political considerations such as social stability, form of government and public attitudes toward foreign investment are all important in the location decision. There is a machine at each step of the process, and this is a machine-paced process. If you were one of 10 new workers the firm was about to hire, would you prefer to be paid the value of your average prod, The Chase Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard machine-hours. The company has an annual production rate of 292,000 units. \\ b) A c Material delays have routinely limited production of household sinks to 480 units per day. Each unit requires two standard hours of manufacturing labour for completion. - Another consideration is the notion of the minimum efficient scale and its comparison to demand. C. 8 percent. 12.The weighted average of different interest rates paid on long-term borrowings is . During a three-day period, the bakery made 850 loaves per day. c. goods have a low value-to-weight ratio. b. Determine the term being described or defined by the following statement: The difference between resources used and resources supplied. The tariffs prevailing in this industry are currently low. In December, the factory produced 700 units. Johnson's Barbecue hut has the following December 31, 2011 balance What is the expected output for a plant with a design capacity of 108 chairs per day, if its effective capacity is 90 chairs and its efficiency is 90%? If the price of capital is $120 per day and the price of labor is $30 per day, what is the minimum cost of producing 1000 units of output? Course Hero is not sponsored or endorsed by any college or university. In addition to the impacts from power generation, there are also impacts associated with extracting, producing, and transporting certain fuels such as coal and natural gas. d. the fi, Jabriel Corporation uses a standard cost system in which it applies manufacturing overhead (MOH) on the basis of direct labor- hours (DLH). True or false? d. 1.00. =___? Honey industries has $4 billion in sales and $1.6 billion in fixed assets. 3. The extent to which products and services are delivered at low cost, Which company sets the price in the market place? C ? Which one of the following factors usually motivates a smaller capacity cushion? Allowances for which of these factors would be subtracted from design capacity when calculating effective capacity? c. No dividends were paid during the year, but the owner did invest an additional$55,000 cash in exchange for common stock. What is its utilization if it processes an average of 45 loans per day? At the beginning of the year, budgeted (estimated) manufacturing overhead costs totaled $400,000, budg, A firm whose price is below its average cost: a. is earning positive economic profit. Th, A certain company uses a single raw material in its production process. Blue Springs is a company that produces bottled water. If the level of capital is decreased: a. the total product curve shifts downward. In the past month the plant produced 750 units. True or false? A loan processing operation that processes an average of 3 loans per day. Most companies make a capacity decision frequently. When capacity utilization rate is high: a. the rate of interest is likely to decrease. Get access to this video and our entire Q&A library, Capacity & Facilities Planning: Definition & Objectives. Fedex was originally designed to deliver time sensitive documents. In a start-to-start relationship, a 2-day lag implies that: A. the successor can start two days before the predecessor has started. 2) How does capacity utilization influence the extent of entry barriers? The firm uses two factors of production - chemicals and labor. Secure .gov websites use HTTPS Current sales are $640,000. True or false? The Best Beer Corporation has a beer-processing facility in Columbus, Ohio. a. Createyouraccount. Systematic capacity planning includes the following steps except: a. estimating future capacity requirements. It is usually a good idea to keep capacity planning separate from product and service design so that the issues in each area don't become intertwined. its costs are C(x,y,z) = 3200 + 0.4x + 0,2y + 8y^2 + 0.8z . Please click here to see any active alerts. The company, Materials + Workmanship + Design = Perception. Concerns regarding the visibility of all aspects of supply chains and the traceability of materials along supply chains were focused upon. This means the firm is: a) producing less output than allocative efficiency requires. In mushroom production, the principal pests are flies, mites, and . In millions, by how much could Wei Guan's sales increase before For the next six months, Kurtz Company projects the following information (in units). - cost; knowledge of the product may provide efficiency advantages over potential suppliers; A closely-related advantage of in-house production is cost control Consider the following product structure: If the demand for product A is 50 units, how many units of component E will be needed A) 100 B) 250 C) 300 D) 4 E) 200, Scorla Corp. is an apparel manufacturing factory. The wage rate in this area is w = $15, and the cost of capital is r = .05. a. Reid will be driving through Spain this summer. What is the capacity (in customers per hour) of the bakery? a. D any machine can be used if available. 40% b. (b) Give an example. Simplifies the production process The beer facility has a system efficiency of 90 percent, and the utilization is 80 percent. the management of all activities in the supply chain, in order to minimize the total cost of the supply chain, and to maximize the value of the product to the end user; Supply-chain management has become a new source of competitive advantage. b. tends to increase the unemployment rate. The. Find the firm's short-run cost function, if Ki is fixed at $100,000. Time spent in labor rooms varies from An aircraft manufacturer is developing a preliminary cost estimate for building a 300 MW fossil-fuel powerplant. _____ refers to the management of the direct resources that are involved in the production system of a business, Tipton Manufacturing is based in Lexington, Kentucky. A value equal to the demand. - the firm may not be able to gain the economies of scale that can be gained by a large supplier B any machine can be used if available ? The cost of a unit of labor is $80 and the cost of a unit of capital is $20. A lock (LockA locked padlock) or https:// means youve safely connected to the .gov website. c. demand is higher than the minimum efficient scale. The labor standard is 100 items/FTE. Financial considerations such as transactions risk, translation risk, and economic risk, and government incentives are also important. The times at each process are in hours. Problem 5-1 Determine the utilization and the efficiency for each of these situations: a. $10,800 C. $40,000 Based upon the information provided, what level of sales could Johnson's have obtained if it had been operating at full capacity? BeginningoftheyearEndoftheyearAssets$60,000105,000Liabilities$20,00036,000. Each agent is paid $28,000 per year and is able to process 4,000 purchase orders. What kind of staffing approach is being used by Dubai? The total production capacity in CO and SC are respectively 250 and 400 units. Improving supply chain operations can typically rein in "double-digit" productivity growth and reduce product cycles by 30-40%, allowing faster response to customers. The beer facility has system efficiency of 90 percent, and the utilization is 80 percent. The Dahlia Medical Center has 33 labor rooms,15 combination labor and delivery rooms, and 22 delivery rooms. (a) include staffing and scheduling (b) include inventory control (c) include defining product specifications (d) None of the above. One production facility will usually be favored when _______. When capacity is inadequate, customers can be lost. Discuss the challenges that company management faces with defining and managing capacity.
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