# homework 3 - Miguel Ruiz OPMA 3306-001 Homework 3 What are...

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Miguel Ruiz OPMA 3306-001 Homework 3 What are the factors which allows firm to achieve economies of scale? Flexibility (Plants, Processes, Workers), High Utilization, Growth and Large Size What are the two ways through which firm can add capacity by using external capacity? Outsource capacity and share capacity. What is meant by capacity flexibility and what are three ways by which firm can have flexible capacity? Capacity flexibility is being able to quickly increase or decrease production levels. This can be achieved by having a production plant whose equipment can be built just as easily as it can be torn down. Also, by having the ability to produce multiple products in one plant using simplified and low-cost processes. Lastly, by having flexible workers who are skilled enough to be able to produce multiple products in the most efficient ways possible.

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Unformatted text preview: What are the labor requirement implications? Hint: Calculate the labor capacity requirement for both the machine and add them up for each year to know total labor requirement as worker can operate both machines. Labor Requirement: The firm will need to employ 6.64 machine operators for year 1 in order to produce the amount necessary to meet their forecasted demand. The same will go for year 2 with 7.52 employees, and so on with years 3 and 4. Miguel Ruiz OPMA 3306-001 Forecasted demand over the course of the four years steadily rises and will require the firm to employ more machine operators each year to keep up with forecasted demand. Year 1 = 6.64 Year 2 = 7.52 Year 3 = 8.46 Year 4 = 11.16 Miguel Ruiz OPMA 3306-001 Construct a decision tree to help Expando make the best decision. Miguel Ruiz OPMA 3306-001...
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• Spring '16
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• Miguel Ruiz

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