Operations Management Assignment 4

Operations Management Assignment 4 - Name BUS 353E1...

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Name: BUS 353E1 Instructor: Jeff Bragar Date: 02/21/11 Assignment Chapter 4 1. Many capacity problems encountered when a new drugs is introduced to the market. These are some of them: * Production capacity: we may need to buy new equipment, and it will take a while to get that delivered, installed, tested, and running properly. * Materials: we have to line up sources for all of the materials we will need, plus packaging, etc. * Suppliers: finding suppliers for machinery, compounds, materials needed, etc. 2. A plant should stop growing when its long-run average cost curve hits the inflection point. However, since this determination is often difficult to make (in the short run), other factors such as coordination problems, excess capacity, capacity imbalance, and market shifts indicate a need to consider setting capacity limits. If a plant grows large enough, all of the support systems will become large enough that they will get in the way of production. There can be diseconomies of scale. For example, if the plant grows large enough, material will have to move so far, and people will have to walk so far, that we pay so much to move things around that we would save money by building a separate, smaller plant. 3. Some capacity problems faced by: a. An airline terminal: So many people at the airline for travelling every day. Thus, we have to make sure we have enough capacity such as space, security, etc to provide them a best service we can offer.
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b. A university computing lab: There are limit numbers of computer lab at a university, but so many students are in need of use them to do homework or research projects. Therefore, some university faced a big capacity problem for how to satisfy the students’ needs when they need
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This note was uploaded on 04/22/2011 for the course BUS 353 taught by Professor Jeffbragar during the Spring '11 term at Bloomfield College.

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Operations Management Assignment 4 - Name BUS 353E1...

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