GM 564 Week 3 Assignment

GM 564 Week 3 Assignment | Franklin Pierce University | Assignment Help 

Module Three Homework

To receive full credit, the problems and answers need to professionally presented and documented.  Also, be sure to show your math or QM for Managers screen shots as single answers to these questions will receive a very low grade. 

#1  In a job shop, effective capacity is only 50 percent of design capacity, and actual output is 80 percent of effective capacity. What design capacity would be needed to achieve an actual output of eight jobs per week?

#2  The manager of a car wash must decide whether to have one or two wash lines. One line will mean a fixed cost of $6,000 a month, and two lines will mean a fixed cost of $10,500 a month. Each line would be able to process 15 cars an hour. Variable costs will be $3 per car, and revenue will be $5.95 per car. The manager projects an average demand of between 14 and 18 cars an hour. Would you recommend one or two lines? The car wash is open 300 hours a month.

#3  Answer the following questions

Fixed Costs:                                   $14,000 per year
Variable Costs:                              $1.00 per unit
Revenue:                                         $1.55 per unit
Design Capacity:                            43,000 units per year
Effective Capacity:                         40,000 units per year
Anticipated Output:                         34,000 units per year

a.  What is the break-even quantity (produced and sold)? 
b.  What are total revenues for the break-even quantity? 
c.  What are total costs for the break-even quantity? 
d.  What quantity would be required for a profit of $2,000? 
e.  What profit (loss) would there be for a quantity of 27,000? 
f.   What profit (loss) would there be for a quantity of 10,000? 
g.  What is the anticipated utilization? 
h.  What is the anticipated efficiency? 

#4 Develop a capacity analysis for your organization, or one you have worked with in the past.  Be sure to include in your analysis some of the following:

Design capacity

Effective capacity

Actual output

Human considerations

Operational factors

External forces

Supply chain issues

Lastly, conclude with a set of recommendations to improve operations.  These recommendations should resonate from your analysis.

  If you do not have hard numbers for this analysis, feel free to create them.