Questions from General Operations Management

Q: Luke’s Ristorante wants to add a sea bass dinner to their menu

Luke’s Ristorante wants to add a sea bass dinner to their menu. A small grill and oven would be added to the kitchen cooking area at a fixed cost of $9,000. The variable cost per fish dish is estimate...

Q: Meyers Window Company introduced a new window design but sales were below

Meyers Window Company introduced a new window design but sales were below expectations. Sales in units last year were 800 units. Variable cost per unit averaged $105.72, the fixed cost was $42,000, an...

Q: MovieFix is a video streaming company that sells to a potential audience

MovieFix is a video streaming company that sells to a potential audience of 300,000 customers. The selling price is $20 per month and its variable cost is $14.62 per month. What is the most the compan...

Q: Pesto Restaurant must decide between two types of technology in its kitchen

Pesto Restaurant must decide between two types of technology in its kitchen. Option A is to use an induction oven process with a fixed cost of $20,000 and a variable cost of $6.51 per meal. Option B i...

Q: The selling price per box for Cynthia’s Cookies selling price per box

The selling price per box for Cynthia’s Cookies selling price per box is $19.95. Fixed costs are $65,000 and the variable cost per box is $9.88. a. What is the breakeven quantity? b. If sales last y...

Q: In Problem 35, Cynthia’s Cookies must decide between two improvement options

In Problem 35, Cynthia’s Cookies must decide between two improvement options. Option 1 is spending $10,000 on a new online marketing campaign that is expected to increase last year’s sales (units) by...

Q: Suppose that the specification for a part (in inches) are

Suppose that the specification for a part (in inches) are 6.00 ± 0.02, and the Taguchi loss function for some part is estimated to be L(x) = 6,800 (x – T)2. Determine the economic loss if x = 6.05 inc...

Q: Appleton Corporation is one of the largest forest- products companies in

Appleton Corporation is one of the largest forest- products companies in the world, converting trees into three basic product groups: (1) building materials, such as lumber and plywood; (2) white pa...

Q: A quality characteristic has a specification (in inches) of 0

A quality characteristic has a specification (in inches) of 0.200  0.020. If the value of the quality characteristic exceeds 0.200 by the tolerance of 0.020 on either side, the product will require a...

Q: Vehicle transmission repairs for part number TAC45123 are costly to replace.

Vehicle transmission repairs for part number TAC45123 are costly to replace. A highly skilled mechanic must disassemble the tranmission. If the part fails while it is in warranty, the manufactuerer pa...