Essay About Recent Changes And Maximum Price

Organizational Management
Essay Preview: Organizational Management
Report this essay
Chapter 2
Problem 6
$45,000
2,250
VCb-VCm
$160-$140
The break-even quantity is 2,250.
Problem 7
The firm should make the part in-house.
$45,000
4,500
VCb-VCm
$150-$140
Yes, the company should accept the offer.
VCb-VCm
1,500=$45,000/(VCb-$140)
VCb=$170
The maximum price per part the manufacturer should be willing to pay to the supplier if the forecast is 1,500 parts would be $170.
Chapter 3
Problem 2
New-Old
X 100%
10,608/26-8,335/21
X 100%
2.77%
8,335/21
Productivity has improved by 2.77%. The recent changes have helped the airline increase revenue by adding more flights and serving more customers.
Problem 4
Productivity
Output
40,000 hamburgers x 52 weeks
215.16 units/dollor of inputs
Input
$5,000/3 years + $8,000
$10,000/5 years = $2,000/year $2,000/year < $4,000/year Yes, we should consider purchasing this equipment. Since the cost of using this equipment per year is $2,000 and the cost of labor that we pay more without using this equipment is $4,000 per year, we actually save $2,000 per year by purchasing this equipment. Chapter 16 9. Suppose that a specification calls for LTL=2.0 and UTL=6.0. A sample of 100 parts found µ=4.5 and σ=0.5. Compute Cp, Cpl, Cpu, and Cpk. Should the manager consider any action based on these results? (UTL-LTL) (6.0-2.0) 6 x 0.5 (µ-LTL) (4.5-2.0) 3 x 0.5 (UTL-µ) (6.0-4.5) 3 x 0.5 Cpk= Min (Cpl, Cpu) = Min (1.67, 1) = 1 From the data above we can see, because of the values of Cp exceeding 1, it indicates good capability. Cpu=1 indicates that the process is capable of meeting the upper specification. Cpk is the "worst case" and provides an indication of whether both the lower and upper specifications can be met regardless of where the process is centered. This is the value that most managers pay attention to. So, Cpk=1, we will say it is good, but not good enough. Chapter 11 2. Forecasts and actual sales of portable MP3 players at Just Say Music are as follows: Month Forecast Actual Sales March April August September October Plot the data and provide insights about the time series. What