Assignment #$1-$ Chapters $5$&$6$

Strategic Capacity Planning and Process Design and Facility Layout Operations Management $($BU $3044-201)$ Due Monday, February ${12}^{th}$ at $1$:$30$ p$.$m$.$

Total marks: $\frac{?}{35}$

Total percentage: $\frac{?}{25}\%$

Guidelines

You must work on your own. The short answer questions should be answered in full sentences. Please pay attention to your grammar and sentence structure. Support your answers with appropriate examples, wherever possible and round up to one decimal $($ex$.7\mathrm{.}78=7\mathrm{.}8).$

Quality of your answers is of critical importance, not the number of words used so don't give me words that are not needed to answer the question.

Answers MUST be in your own words. You must understand that plagiarism is an offence and will be seriously dealt with as per college policies and may result in a failing grade.

Make sure you write your name with student number and the title of the assignment on the cover page.

Your assignment MUST be submitted through Blackboard on Monday, February $12$th$,2024,$ by $1$:$30$PM EST. Email and late submissions will NOT be accepted.

Question #$1(7$ marks$)$

Arvin Mills Operations Manager Jyoti identifies a bottleneck process which is restricting the process of denim jeans in a timely fashion. She suggest an addition of another piece of equipment and had research alternatives. Two pieces of equipment #$1$ and #$2$ have been identified. Fixed costs $($annually$)$ would be $$80,000$ for #$1$ and $$60,000$ for #$2.$ Variable Costs would be $$10$ for #$1$ and $$12$ for #$2.$ She identified revenue per unit to be $$15$ and $$16$ respectively.

A$.$ Determine the break even point for each one. $(2$ marks$)$

B$.$ At what quantity would the two alternatives have the same profit? $(2$ marks$)$

C$.$ If expected annual demand is $18,000$ units, which alternative would yield the higher profit? $(3$ marks$)$

Question #$2(5$ marks$)$