A bicycle component manufacturer produces hubs for bike wheels. Two processes arepossible for manufacturing, and the parameters of each process are as follows:Process 1Production rateDaily production timeProcess 235 parts/hour4 hours/day20%15 parts/hour7 hours/day9%Percent parts rejectedAssume that the daily demand for hubs allows all defect-free hubs to be sold. Select theprocess that maximizes profit per day if each part is made from $4 worth of material andcan be sold for $30. Both processes are fully automated, and variable overhead cost ischarged at the rate of $40 per hour.

Answered: A bicycle component manufacturer…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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An item can be sold for P63per unit wholesale is being produced with thefollowing cost data: Labor cost =P10 per unitMaterial cost =P15 per unitFixed charges =P10,000Other variable cost =P8 per unit a.) What is the break-even sales volume?b.) What is the break-even sales volume if one out of every ten units produced is defective and is rejected with only full recovery on materials?
17. Services differ from manufactured products in four ways. Intangibility, Inseparability, Perishability and ? A. Homogeneity B. Heterogeneity C. Intractability D. Invisibility E. None of the above 18. The implications of low volume production include the following except a) Low unit cost b) Less systematization c) Low repetition d) Each staff performs more of jobs e) None of the above
Using the sample data given in Table 2-20, it is assumed that all the 10 styles are made in Hong Kong and that Wally’s initial production commitment must be at least 10,000 units. A recommendation is made about how many units to produce each style given in the initial production. Style Price Laura Carolyn Greg Wendy Tom Wally Average forcast Standard Deiation 2x standard deviation First-period production 1 µ σ MAX (0, µ - kσ) Gail $110.00 900 1000 900 1300 800 1200 1017 194 388 605 Isis $99.00 800 700 1000 1600 950 1200 1042 323 646 357 Entice $80.00 1200 1600 1500 1550 950 1350 1358 248 496 832 Assult $90.00 2500 1900 2700 2450 2800 2800 2525 340 680 1804 Teri $123.00 800 900 1000 1100 950 1850 1100 381 762 292 Electra $173.00 2500 1900 1900 2800 1800 2000 2150 404 807 1294 Stephanie $133.00 600 900 1000 1100 950 2125 1113 524 1048 1 Seduced $73.00 4600 4300 3900 4000 4300 3000 4017 556 1113 2836 Anita $93.00 4400 3300 3500 1500 4200…
A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and the parameters of each process are as follows: Process 1 Process 2 35 parts/ hour 4 hours/ day 15 parts/hour 7 hours/day 20% 9% Production rate Daily production time Percent of parts rejeted based on visual inspection Assume that the daily demand for hubs allows all defect-free hubs to be sold. Additionally, tested or rejected hubs cannot be sold. Find the process that maximizes profit per day if each part is made from Php 200 worth of material and can be sold for Php 1,500. Both processes are fully automated, and variable overhead cost is charged at the rate of Php 2,000 per hour.
A premium golf ball production line must produce all of its balls to 1.615 ounces in order to get the top rating (and therefore the top dollar). Samples are drawn hourly and checked. If the production line gets out of sync with the target weight on a statistical significance test it must be shut down and repaired. Assume that the weight of golf balls is normally distributed. This hour’s sample of 18 balls has a mean of 1.611 ounces and a standard deviation of 0.065 ounces. This hour's sample mean falls -0.2600 standard errors below the mean. What is the exact p-value of this t statistic? (Enter your answer to 4-decimal places, for example 0.1000.)
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Each day, a Fedtx competitor processes approsimately 70,000 shipments. Suppose that they use the same Service Quality Index as FedEx and identified the following numbers of erors during a S-day week (see the "FedEx: Measuring Service Performance box). These values are hypothetical and do not reflect any real company' actual performance Description Weight Number of Errors Complaints reopened 140 Damaged packages 10 18 International 1 107 Invoice adjustments 277 Late pickup stops 205 Lost packages 10 1. Missed proof of delivery 22 Right date late 748 Traces 116 Wrong day late 13 Compute the Service Quality Indicator by finding the weighted sum of errors as a percentage of total shipments. Do not round intermediate calculations. Round your answer to three decimal places Service Quality Indicator (SQI):

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