Production Management
You must show every step of your calculation. Please answer the questions sequentially
1). The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put in use, the program has become more complex, so that 1050 now represents the most employees that can be trained per year. In the past year, 950 employees were trained.
a). What is the efficiency of this system?
b). What is its Utilization?
2). XYZ Manufacturing intends to increase its plant capacity by overcoming a bottleneck operation with addition of some new equipment. Two vendors have produced proposals. Fixed costs for proposal A and B are $50,000 and $70,000 respectively. The variable cost for A is $12.00 and for B is $10.00. The revenue generated by each unit is $20.00.
a). What is the break-even output in units for proposal A and B?
b). What is the break-even point in dollars for proposal A and B if a new installation of $10,000 is added to fixed cost?
3). A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites. Using the factor rating method, determine the suitable site for the facility.
|
Factor
|
Weight
|
Gary Mall
|
Belt Line
|
|
Affluence of local population
|
.20
|
30
|
30
|
|
Traffic flow
|
.40
|
50
|
20
|
|
Parking availability
|
.20
|
30
|
40
|
|
Growth potential
|
.20
|
10
|
30
|