196 x 03507 006 x 366 0687372 02196 2 97975 10

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1.96 x 0.3507 0.06 x 3.66 ¿ ¿ ¿¿
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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)
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= 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
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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.
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Reference Heizer, J., Render, B., & Munson, C. (2017). Operations Management Sustainability and Supply Chain Management 12th Edition .Boston: Pearson. -
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