Operations Management 2016 Edition Eckstein Solutions Manual
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Given Data:. Variable costs of each unit produced and sold is $6. The fixed cost per year $60,000. Selling price is $18 Graphic approach: Total annual cost = F + c Q. To solve graphically, plot two lines one for cost and one for revenues.
Two points determine a line, so begin by calculating costs and revenues for two different output levels. The following table shows the results for Q=0 and Q= 9,000. Select zero as the first point because of the ease of plotting total revenue (0) and total cost (F). However, one could have used any two reasonably spaced output levels. Quality (Q) Total annual cost (F + c Q) Total annual revenue (p Q) 0 60,000 0 90000 114,000 162,000 Now draw the line through points (0, 60,000) and (9,000, 114,000). The revenue line goes between (0, 0) and (90,000, 162,000).
As figure indicates, these two lines interest. 5,000 units the break-even point. Operations managers make many decisions as they manage process and supply chains, and decision making generally involves the same basic steps.
Recognize and clearly define the problem. Collect the information needed to analyze possible alternative. Choose and implement the most feasible alternatives. Operations managers follow four types of formal procedures i.e break even analysis, the preference decision tree, preference matrix decision theory, and the decision tree are all considered as crucial to the final decision. The preference matrix helps a manager to deal with multiple criteria. Decision theory helps the manager to choose the best alternative, and the decision tree helps the manager when decisions are made sequentially. Why is Chegg Study better than downloaded Operations Management 11th Edition PDF solution manuals?
It's easier to figure out tough problems faster using Chegg Study. Unlike static PDF Operations Management 11th Edition solution manuals or printed answer keys, our experts show you how to solve each problem step-by-step. No need to wait for office hours or assignments to be graded to find out where you took a wrong turn.
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You can check your reasoning as you tackle a problem using our interactive solutions viewer. Plus, we regularly update and improve textbook solutions based on student ratings and feedback, so you can be sure you're getting the latest information available. How is Chegg Study better than a printed Operations Management 11th Edition student solution manual from the bookstore? Our interactive player makes it easy to find solutions to Operations Management 11th Edition problems you're working on - just go to the chapter for your book.
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