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  • QUIZ 1 Chapter 1 4 Beta

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    Arjeune Victoria Bulaon
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    The document compares two production options for a new product line. Option 1 can produce 12,000 units per month with 6 labor hours and $400 in materials per unit, and $2 million in overhead. Option 2 can produce 20,000 units with 3 labor hours and $300 in materials per unit, and $4 million in overhead. It calculates the unit cost of each option and determines that at 9,000 units/month, Option 1 is better. It also finds the production level at which the unit costs are equal. The document also evaluates a company's productivity improvement over the past year based on output, labor hours, utilities, and capital. Finally, it provides patient arrival data to compare different forecasting models.

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    The document compares two production options for a new product line. Option 1 can produce 12,000 units per month with 6 labor hours and $400 in materials per unit, and $2 million in overhead. Option 2 can produce 20,000 units with 3 labor hours and $300 in materials per unit, and $4 million in overhead. It calculates the unit cost of each option and determines that at 9,000 units/month, Option 1 is better. It also finds the production level at which the unit costs are equal. The document also evaluates a company's productivity improvement over the past year based on output, labor hours, utilities, and capital. Finally, it provides patient arrival data to compare different forecasting models.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views3 pages

    QUIZ 1 Chapter 1 4 Beta

    Uploaded by

    Arjeune Victoria Bulaon
    The document compares two production options for a new product line. Option 1 can produce 12,000 units per month with 6 labor hours and $400 in materials per unit, and $2 million in overhead. Option 2 can produce 20,000 units with 3 labor hours and $300 in materials per unit, and $4 million in overhead. It calculates the unit cost of each option and determines that at 9,000 units/month, Option 1 is better. It also finds the production level at which the unit costs are equal. The document also evaluates a company's productivity improvement over the past year based on output, labor hours, utilities, and capital. Finally, it provides patient arrival data to compare different forecasting models.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    QUIZ 1

    Productivity, Unit Cost, CPM & Forecasting

    ABC Company is considering two types of technologies for the manufacture of its new product line, Product X.
    The first option can yield up 12,000 units per month, requires 6 labor hours per unit, P400 worth of materials
    and entails an overhead of P 2 million per month. The second option can yield up 20,000 units per month,
    requires 3 labor hours per unit, P300 worth of materials and entails an overhead of P 4 million per month.

    Assuming a labor cost of P60 per labor hour, compute for the unit cost of each option based on maximum
    output level.

    Option 1 Option 2
    Maximum Output 12,000 20,000
    Labor hours/unit
    Labor (Pesos)/unit
    Materials (Pesos)/unit
    Fixed Overhead
    Fixed Overhead/unit
    Total Cost per unit

    At a production level of 9,000 units/month, which option is better?

    Option 1 Option 2
    Production Output 9,000 9,000
    Labor hours/unit
    Labor (Pesos)/unit
    Materials (Pesos)/unit
    Fixed Overhead
    Fixed Overhead/unit
    Total Cost per unit

    At what production level are we indifferent to either option? This is the production level where the Total Cost
    per unit of Option 1 is equal to that of Option 2.

    Option 1 Option 2
    Production Output
    Labor hours/unit
    Labor (Pesos)/unit
    Materials (Pesos)/unit
    Fixed Overhead
    Fixed Overhead/unit
    Total Cost per unit
    DEF has implemented several programs to improve its productivity. They have asked you to evaluate the
    firm's productivity by comparing this year's performance with last year's. The following data are available:

    Last Year This Year


    Output 12,000 units 15,000 units
    Labor Hours* 800 900
    Utilities $1,200 $1,200
    Capital $5,000 $6,000

    Has DEF improved its productivity during the past year?

    Resource Last Year This Year Change Pct.


    Change
    Labor# / = / =
    Utilities / = / =
    Capital / = / =
    Multifactor* / = / =
    *Assume labor cost of $4/labor hour

    Given the activities, their expected activity time and their predecessors, complete the PERT chart and table
    below to determine the critical path for the project.

    Activity Precedenc Early Early Late Late Critical


    Activity Slack
    time e Start Finish Start Finish Path?
    A 4 -
    B 6 A
    C 8 A
    D 8 A,B,C
    E 6 B,D
    F 3 C,D
    G 9 E,F
    H 8 E,G
    I 5 F,G
    J 7 G,H,I
    JKL Hospital wants to try different forecasting models to predict patient arrivals in its ER.
    Historical records for the past 20 days are presented below.

    Exp. Sm.
    Day Patients Linear Weighted Exp. Sm.
    x^2 xy MA 3 MA 6 alpha =
    (x) (y) Rgress. Average alpha = 0.5
    0.1
    1 547
    2 553
    3 556
    4 559
    5 560
    6 570
    7 570
    8 572
    9 578
    10 583
    11 587
    12 592
    13 598
    14 596
    15 600
    16 604
    17 614
    18 617
    19 620
    20 621
    Total
    Ave.
    MSE        
                       
    Intercept 543.111 w4 0.1  
    Slope 3.97519 w3 0.2  
      w2 0.3  
                w1 0.4    

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