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    there are: forecasts of moving average for number of cases and total expenses in August 2014 for the six types of BGB’s forecasts of exponential smoothing for number of cases and total expenses in August 2012 for the six types of BGB’s All the data are calculated through Microsoft Excel and results were presented through forecasting

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    Cost of Production

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    the Short Run Fixed Costs Implicit Costs Explicit Costs Variable Costs Average Costs Marginal Costs The Symmetry Between Production and Costs Total Product and Total Cost Curves Geometry of Average and Marginal Costs Curves Average Physical Product and Average Variable Costs Marginal Physical Product and Marginal Cost Costs in the Long Run Isocost Lines Cost Minimization The Expansion Path and the Long Run Total Cost Curve Average Cost and Marginal Cost in the Long Run Returns to Scale and the Long

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    Operating Management

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    1. Carrying costs include the following items‚ except: a. labor b. record keeping c. rent *d. all the above 2. Which of the following is not a cost associated with carrying inventory? *a. price discounts b. carrying costs c. ordering costs d. shortage costs 3. The level of inventory at which a new order should be placed is known as the a. lead time b. replenishment quantity *c. reorder point d. service level 4. A restaurant currently uses 62‚500 boxes of napkins

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    saleable products per shift is improved and the average unit cost is reduced. TOYOTA has also found ways to increase the flexibility of production‚ between different types of products. At TOYOTA‚ for example‚ the former goal of being able to make a die change in a minute has been changed to a few seconds. As a result‚ completely different (much shorter) production runs that enjoy the economies of mass production have become possible. The short run average cost functions (based on newly evolved Production

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    when firms increase their scale of production. Hence‚ they incur lower average costs of production‚ either through specialization or other factors. When average costs fall‚ giving the price of the good to be constant‚ profit margins of these firms will be increased. Thus‚ the individual firm benefits from internal economies of scale. External economies of scale arise when all firms in an industry experience decreasing average costs of production‚ which can be due to economies of concentration‚

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    graph above‚ the average fixed cost (AFC) curve falls as output increases due to the fact that fixed costs are a decreasing proportion of total cost as output increases. Both the average total cost (ATC) and the average variable cost (AVC) curves fall‚ and then rise again. The curves start to rise after a certain point because diminishing return takes place. The distance on the y-axis between the ATC and the AVC represents the value of the average fixed cost (AFC). Just like the average variable cost

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    Economies of Scale Scope

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    82476 c02.3d GGS 3/17/09 15:15 r r r r r r r r r r r r r r r r r r r r r r r r r rr ECONOMIES AND SCOPE OF SCALE 2 r r r r r r r r r r r r r r r r r r r r r r r r r rr ew concepts in microeconomics‚ if any‚ are more fundamental to business strategy than economies of scale and the closely related economies of scope. Economies of scale allow some firms to achieve a cost advantage over their rivals. Economies of scale are a key determinant of market structure and entry

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    73695 1 Assignment ME NEW 3

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    households refrigerator or television set. 3. Analyse the method by which a firm can allocate the given advertising budget between different media of advertisement. 4. What kind of relationship would you postulate between short-run and long-run average cost curves when these are not U-shaped as suggested by the modern theories? 5. How do demand forecasting methods for new products vary from those for established products? AMITY SCHOOL OF DISTANCE LEARNING Post Box No. 503‚ Sector-44 Noida – 201303

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    1. Sally spends her afternoon at the art gallery‚ paying $5 for her bus fares and $11 for food and drinks rather than spending an equal amount of money to go to a movie and have a similar meal at a similar price. The opportunity cost of going to the art gallery a. b. c. d. e. is less than the opportunity cost of going to the movies. equals $5 because she would have had a meal anyway. is the money she spent. is the movie she didn’t see.* is zero‚ if there is no fee to enter the

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    Interactive Management Science MS&E 107/207‚ Midterm Review The Flaw of the Averages Mindle 1 / Uncertainty vs. Risk * Risk is in the eye of the beholder * Risk reflects how uncertain outcomes cause loss or injury to a particular individual or group * Risk attitude measures the willigness to incur risk in the quest of reward * Different risks to the same uncertainty Mindle 2 / An uncertain number is a shape * A distribution * “Uncertain numbers” * Risk is subjective

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