Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 4, Problem 18P

A

Summary Introduction

Interpretation: The golf course(s) MI, Inc should select is to be identified.

Concept Introduction: A decision tree is a chart used for determining the result of a complex problem. It is a branching method used for calculating the result.

B

Summary Introduction

Interpretation: The expected payoff for this project is to be determined.

Concept Introduction: A decision tree is a chart used for determining the result of a complex problem. It is a branching method used for calculating the result.

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Techno Corporation is currently manufacturing an item atvariable costs of $5 per unit. Annual fixed costs of manufac-turing this item are $140,000. The current selling price ofthe item is $10 per unit, and the annual sales volume is30,000 units.a. Techno can substantially improve the item’s quality byinstalling new equipment at additional annual fixed costsof $60,000. Variable costs per unit would increase by $1,but, as more of the better-quality product could be sold,the annual volume would increase to 50,000 units. ShouldTechno buy the new equipment and maintain the currentprice of the item? Why or why not?b. Alternatively, Techno could increase the selling price to$11 per unit. However, the annual sales volume wouldbe limited to 45,000 units. Should Techno buy the newequipment and raise the price of the item? Why orwhy not?
The Regal Inn is a 30‐unit, motel in the less scenic part KZN. The owner, Mr. Mkhwanazi, firmly believes that there is a need for his style of low‐cost family accommodation amid the luxury and beauty of the area. His rooms are large, family‐style rooms. Although there is plenty of room for future expansion, the grounds are fairly bear with a bit of landscaping. Mr. Mkhwanazi can serve breakfast to the rooms and provides tea‐making facilities. There are now a lot of good restaurants and take‐aways in the area. Mr Mkhwanazi prices are less than half of what similar motels charge and only a fraction of what the big five‐star properties are charging.The problem is occupancy. He has some regulars who come every holiday period. Currently Mr. Mkhwanazi does very little advertising in local district guides and the holiday papers, mainly because he really thinks word‐of‐mouth is the best form of advertising. In the form of an essay of no more than 1 page, discuss what a SWOT analysis entails…
4.) After 10 years of production, the chemical manufacturing plant has become very successful. Because of its success, a great demand for products came as many consumers wanted the company to sell them their products. To meet the demand, three alternatives were considered. Work overtime to meet demands. Annual overtime expenses are $500,000. Expand the plant to accommodate more production. Fixed annual expenses are $2,500,000. Make a contract with another company to produce additional products at a rate of $1,000,000. The cost of manufacturing products from the three alternatives are $3500, $3000 and $3250 per unit respectively. The plant sells every unit made regardless of how they were made at $15,000 per unit. The expected demand for the product is 150 units with a probability of 50% 250 units with a probability of 35% 350 units with a probability of 7.5% 400 units with a probability of 5% 500 units with a probability of 2.5%
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