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the size of the market‚ it can sell as much of the cream as it likes at the prevailing market price. The plant producing DermaPlus™ has been operating for a little over three years with the same manufacturing equipment. Currently there are no plans for upgrading or adding to this equipment. Over the last three years‚ the price of DermaPlus™ and related creams has been quite volatile and BioMed has tried to react to the changing price by varying its output level to constantly maximize its monthly
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Vice President for Marketing‚ she was acutely aware that the “bicycle boom” had fattened out‚ and that poor economy had caused Baldwin sales volume to fall. 4. BBC was currently operating its plant at about 75% of capacity meaning‚ 75‚000 units is currently produced. (excess capacity 25‚000 units) 5. The contract between BBC and Hi-Valu is for three years and will be automatically extended on a year to year basis‚ unless one party gave notice
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Logistics and Supply Chain Management Case Submission Sport Obermeyer Assuming Obermeyer’s initial production commitment must be at least 10‚000 units. Problem Statement1: using the sample data given in Table 2.20 of the case in the text make a recommendation of how many units of each style Obermeyer should order during the initial phase of production. Assume that all 10 styles in the sample problem are made in Hong Kong. c_u 24% c-o 8% Style
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Weigelt Corporation has three branch plants with excess production capacity. Fortunately‚ the corporation has a new product ready to begin production‚ and all three plants have this capability‚ so some of the excess capacity can be used in this way. This product can be made in three sizes--large‚ medium‚ and small--that yield a net unit profit of $420‚ $360‚ and $300‚ respectively. Plants 1‚ 2‚ and 3 have the excess capacity to produce 750‚ 900‚ and 450 units per day of this product‚ respectively
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Operations Management Exam – revision notes Handles & Hinges Case (p670 of textbook) Key Points to note • Historical success based on reputation for high quality unique designs. • Architects specified H&H even in the face of alternative suppliers claiming equivalent products at less than 50% cost. Architects unwilling to potentially spoil multi-million pound projects for the sake of saving a few thousand pounds on fittings. See Garvins 5 categories of quality. • Changing
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manufacturing plants in each region‚ with industry total production capacity distributed as shown below: Production Capacity With Overtime (000 units per year) (000 units per year) Eastern region 4‚000 4‚800 Central region 11‚000 13‚200 Western region 4‚000 4‚800 Total 19‚000 22‚800 A company can use overtime to increase output in any plant to 20% above the plant’s capacity. Overtime wage rates are one and one-half times regular wage rates
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Sport Obermeyer 1 Sport Obermeyer’s Time Line and “Speculative” versus “Reactive” Production "NOW" Initial Forecast 9 months Feb … Oct 1992 … 1992 Design of 1993-94 Line. Las Vegas Revised Forecast 5 months Nov … Mar 1992 … 1993 5 months April … Aug 1993 … 1993 "Speculative" Production "Reactive" Production of 1993-94 Line of 1993-94 Line In Feb 1993‚ start design of 1994-95 line. “Speculative” Production 27 Months Sept 1993 Oct 1993 Nov 1993 8 months Dec Jan 1993 1994 Selling of
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Spain. Zara also purchased 20 factories that were highly automated with machines that were specialized for specific garments. 18 of these factories were located near headquarters‚ which minimized transportation costs. Concerning its production capacity‚ Zara‚ based most of its production on what the client is demanding at any time‚ virtually on demand manufacturing of a shop (pull strategy). The model of local production allows you to provide quicker. This is possible due to the average of only
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Excess manufacturing capacity namely refers towards the sum of production capability is better than sum of investing power. China is among the nations which have significant overcapacity challenge. Frequently speaking‚ overcapacity typically seems in steel‚ cement‚ mechanical manufacturing together with other industries‚ which can seriously hinder economic development when it truly is developing to a specific extent. Hence‚ overcapacity dilemma must be paid focus to. Here‚ we are going to primarily
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