A privately owned company manufactures the metal seat frames that are used to make automobile seats. Its customer, the seat manufacturer, forecast that 50,000 frames will be needed next year. The seat frame manufacturer must determine which process to install. One process is more labor-intensive with fixed costs of $400,000 and variable costs of $90 per frame. The second process has fixed costs of $850,000 and variable costs of $75 per frame. Which process do you recommend? Why?
Answer to relevant QuestionsAn insurance company is evaluating a new software system designed to reduce the time for claims processing. The fixed costs with the new system are $120,000 per year. The average variable costs with the new system are $20 ...1. Compared to a fast food restaurant such as McDonald’s, where would Sonnie’s sandwich shop be placed on the service process matrix? What challenges and opportunities does this position create relative to McDonald’s? ...The time students entered the class room of OM 390, Introductory Operations Management, was recorded by the professor in the table below for 5 class meetings. Create and analyze a histogram of this data. For the following check sheet, assume that o indicates a surface scratch, x a blowhole, D a defective finish, * improper shape and ? others. How would you go about analyzing the following check sheet? You are concerned about the quality of parts that you are receiving from your supplier. Consequently, you decide to take 25 batches of samples (where each sample consists of 50 units) and to do 100% inspection on these ...
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