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- How does the requirement that the number of units of model LX produced be at least 60% of the total production affect profits?The following table contains figures on the annual usage and unit costs for a random sample of 12 items. Develop and A-B-C classification for these items: Item Name Annual Usage (No of Items) Unit Cost 1 500 TK 4300 2 3000 720 3 1900 500 4 1000 710 5 4500 250 6 2500 192 7 400 200 8 500 190 9 200 210 10 1000 35 11 3000 10 12 19000 3 Brown and Brown Electronics manufacture a line of digital audiotape (DAT) players. While there are differences among the various products, there are a number of common parts within each player. The bill materials showing the number of each item required, lead times and the current inventory on hand for the parts and components, follows: Demand of products A & B and demand of spares components are shown below: Item Demand on 5th week Demand on 7th Week On-Hand Lead Time (Weeks) A 700 ------ 30 1 B 1200 ------ 50…The selling price of a component is 1.45 Riyal with a material cost of 0.8 Riyal. The cost of the machine used to manufacture the component is15000 Riyals. The present production volume is 22000 units. Determine the breakeven quantity, if the cost of the component is 1.5 Riyal from outside supplier. Due to modification in the component design, the material cost is reduced to 0.70 riyal with additional machine cost of 4000 Riyals and increased production quantity to 30000. Guide the manger to select appropriate product for maximum profit based on profit, break-even analysis and justify the selection.
- Breakeven between Two AlternativesGiven:Option A – Buying a MachineFC = 400,000.00 pesosSV = 80,000.00 pesosi = 10.00%n = 8 yearsAnnual Maintenance cost = 5,000.00 pesos/yearProduction cost = 800.00 pesos/dayOutput = 40 units/dayOption B – Manual ManufacturingAnnual cost = 30,000.00 pesos/yearProduction cost = 1200.00 pesos/dayOutput = 30 units/daya. Option A Annual Cost Equation = ?b. Option B Annual Cost Equation = ?c. Units per year for Breakeven = ?The following table provides a random sample of the unit values and annual demands of eight SKUs. SKU Code Unit Value Demand (units) A104 $0.02 D205 $2.60 X104 $4.80 U404 $2.50 L205 $0.36 S104 $0.84 X205 $4.35 L104 $0.23 4,500 30 25 2,500 1,040 380 70 250 Southern Markets Inc. is considering the use of ABC analysis to focus on the most critical SKUs in its inventory. a. Based on the percentage of dollar usage, which class should L205 belong to? Class b. Based on the percentage of dollar usage, which class should L104 belong to? ClassUsing the given information, calculate the gross requirementsfor each of the components when the company plans to build100 of its Q Models if you have these inventories: 150 units ofcomponent T and 200 units of component R
- Pls solve both for good ratingWhat happens to availability when the MTTR (time between failures) approaches zero? Is there a way to convey this circumstance correctly?Assume that Product Z is made of two units of A and four units of B. A is made of three units of C and four of D. D is made of two units of E. B is made of three units of E. If 50 units of Z is required to make, then how many units of D do they need? Group of answer choices 250 400 300 150 550
- Product A Order Qty = 400 Order Lead Time = 2 Forecast Demand Scheduled Receipts Projected Available Inventory 400 Planned Order Receipts Planned Order Releases 1 300 OD 4, 6, 2 300 400 Sketch and fill in the grid on scrap paper to use on upcoming questions In what periods would you incur a planned order release? OA 1.3, and 4 2.4, and 5 OC 3,5, and 6 and 7 3 300 PERIODS 4 300 5 300 6 300 7 100 8 1005. Meg Jones, the CEO of Ajax Computer Company, and Brad Smith, its Director of Operations, had been discussing how to increase the firm’s production of the company’s flagship XR58. The XR58 was particularly important because it sold 12,500 of them in the most recent year for $950, at a gross margin of 55%. After a lot of discussion, they decided to pursue an incentive system designed to increase production by 12% in the next year. After Brad discussed this possible incentive with the production team, the team determined that it could increase production by this amount without adding any more people or equipment. They believed they could accomplish this improvement primarily through process redesign. To incent them to do the hard work of process improvement, Brad told the team that it would receive 25% of the increased profits if it met the new production goal. For this team of 20 people, this would mean an additional compensation of _________ for each team member, on average, for…What happens to availability when MTTR (mean time between failures) gets close to zero? Is it possible to explain this circumstance accurately?