Question One Based on the information presented in the scenario/case study discuss Albatross Anchor’s competitiveness in relation to (please address all items in the below list and provide support for your conclusions): 1. Cost a) Cost of Production: b) Economies of Scale in material purchasing: c) Cost of Raw Materials Sitting Idle in the Warehouse: d) Cost of Finished Goods Sitting Idle in the Warehouse: 2. Speed of manufacturing process from order to finished product. 3. Flexibility
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Transportation Modes and Economics Transportation modes include: 1) Rail Historically‚ railroads have handled the largest number of ton-miles within the continental United States. 2) Motor Highway transportation has expanded rapidly since the end of World War 11. To a significant degree the rapid growth of the motor carrier industry has resulted from speed and ability to operate door-to-door. 3) Water Water is the oldest mode of transport. The original
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piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units‚ which of the following is the capacity cushion? Your Answer: 75 percent Correct Question: The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as: Your Answer: Economies of scope Correct Question: Capacity planning involving acquisition or disposal of fixed assets such as buildings‚ equipment or facilities is considered
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long run average costs per unit rises with an increase in output.This can b shown in the diagram below: [pic] The rising part of the Long Run Average curve illustrates the effect of diseconomies of scale. Beyond Q1 (ideal firm size)‚ additional production will increase per unit costs. Diseconomies of scale are rarer than economies of scale and they are often offset by economies of scale that exist in the same business. This can make it hard to decide which will have more effect. For example
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Gillette. 8. A localization strategy is based on which of the following ideas? a. There is a convergence in the tastes of consumers in different nations of the world. b. There are substantial economies of scale to be realized from centralizing global production. c. Consumer tastes and
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Individual Assignment Juliana Cardoso ACC 349 April 17‚ 2012 Dr. Armando Salas- Amaro Individual Assignment Ch. 8 E8-11 Allied Company’s Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Allied then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit
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In addition to the major influences on costs of production associated with Delta‚ economies of scale are also relevant to this firm. Economies of scale operate to the left of Q* or the minimum efficient scale of operations according to class lecture notes. So it is in firms best interest to expand and operate at a more efficient level. Delta is a Legacy Airline; because Delta is one of the larger airlines Delta’s costs are expensive in terms of operation. According to lecture notes from class‚ economies
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average variable costs of $10.07‚ or $20.17 per LCD screen. The total cost of producing 99 nLCD screens equals $20.17 times 99 or $1‚996.83. The marginal cost of producing the hundredth LCD screen equals the change in total costs from increasing production from 99 to 100‚ or $2‚000 - $1‚996.83 or $3.17 per LCD screen. 23-9. a. ATC are $20 per unit plus $30 per unit or $50 per unit and total costs divided by average total costs equal output‚ which therefore is $2‚500/$50 per unit or 50 units. b
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the 5 M’s of management in order to create value‚ run the business successfully and efficiently. These 5 M’s include: Money‚ Materials‚ Manpower‚ Machinery‚ and Methodology. The requirements for production usually represented as capital‚ labour‚ and land. Capital covers all man-made aids to future production; fixed capital stays put‚ and includes the physical plant‚ buildings‚ tools and machinery‚ while circulating capital includes raw materials and components. Labour includes all human resources.
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Chapter5 Capacity: The upper limit or ceiling on the load that an operating unit can handle Capacity needs include: Equipment; Space; Employee skills Strategic Capacity Planning: - Goal: To achieve a match between the long-term supply capabilities and the predicted level of long-term demand Overcapacity: operating costs that are too high Undercapacity: strained resources and possible loss of customers Key Questions of Capacity Planning: What kind of capacity is needed? How much is needed to
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