MGMT 420 Module 5 Review.docx

# 196 x 03507 006 x 366 0687372 02196 2 97975 10

• Notes
• 7

This preview shows pages 3–7. Sign up to view the full content.

1.96 x 0.3507 0.06 x 3.66 ¿ ¿ ¿¿

This preview has intentionally blurred sections. Sign up to view the full version.

0.687372 0.2196 ¿ 2 ¿ ¿ ¿ ¿¿ ¿ = 9.7975 = 10 observations Part 5 Your summer intern recorded the following times of an assembly operation. You are hoping to ramp up the production and would like to determine a) the average time b) the normal time c) standard time taken by her using a performance rating of 95% and a personal allowance of 8%. a) the average time Average time = Total minutes / the number of observations = (1.51 / 14)
= 0.1079 b) the normal time The normal time = Average observation time x performance rating = (0.1079 x .95) = 0.1025 c) standard time taken by her using a performance rating of 95% and a personal allowance of 8%. The standard time = (Normal time / 1-allowance factor) = (0.1025 / 1 - .08) = 0.1114 Part 6 You are assessing a make or buy decision and have been provided the following data: Cost per unit if procured from an outside vendor: \$3.50 per unit with a minimum order of 3000 units. Cost of making the component in house: Set up cost: \$15000 and then \$1.75 per unit for labor and materials. Buy: Variable + 3,000 units : \$3.50 per unit Make: Fixed: \$15,000

This preview has intentionally blurred sections. Sign up to view the full version.

Variable: \$1.75 1. Draw a graph to illustrate the crossover point. 2. Determine the number of units where either choice has the same cost. The two lines intersected at 8,572 units, where either buying or making has the same cost.
Reference Heizer, J., Render, B., & Munson, C. (2017). Operations Management Sustainability and Supply Chain Management 12th Edition .Boston: Pearson. -
This is the end of the preview. Sign up to access the rest of the document.
• Fall '14
• miller

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern