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(answered) – 1. (22 points) Airphone, Inc., manufactures cellular telephonesDescriptionSolution downloadThe Question1.? (22 points)Airphone, Inc., manufactures cellular telephones at a processing cost of $47 per unit.? The company produces an average of 250 phones per week although there are 16% defective phones.? Each phone takes one hour to make.? At this time, none of the defective phones can be reworked but can be sold as is.? Each good phone is sold for $125.? The defective phones are sold for parts that provide $12 in revenue per phone.?????The output is defined as the revenue that the company receives.? ????a)? What is the company’s labor hours productivity and what is its multifactor productivity?b)? Suppose that the company is now able to rework half of the defective phones.? It takes an additional 0.5 hours to rework a defective phone.? The cost of reworking a defective phone is $16.? After it has started reworking the defective phones that can be reworked, what is the company’s labor hours productivity and what is its multifactor productivity?? The remaining defective phones that cannot be reworked can still be sold for parts that provides $12 in revenue per phone.c) What is the percent change in the multifactor productivity if the initial process used is the one without the rework capability and is then replaced by the process with the rework capability?2. (18 points)?Doug Moodie is the president of Garden Products Limited.? Over the last 5 years, his vice president of marketing has been providing the sales forecast using his special forecasting technique.? The actual sales for the past ten years and the forecasts from the vice president of marketing are given below.YearSalesVP/Marketing Forecast1170,300–2168,250–3165,700–4169,000–5168,000–6167,300170,0007175,250170,0008172,500180,0009156,700180,00010176,300160,000???Doug wonders if perhaps a weighted moving average or an exponential smoothing approach to forecasting might be better than having the vice president of marketing prepare the forecast.? Doug wants to evaluate a three-period weighted moving average with weights of 0.30 and 0.15 for the second most recent and third most recent periods and the remaining weight(s) consistent with how we have used this method this term.? He also wants to evaluate the exponential smoothing with an ? = 0.30 and a starting forecast for period 4 of 170,000 units.???a)? Which of the three methods (weighted moving average, exponential smoothing and VP/Marketing) provides the best forecasting method if you were to evaluate these methods based on their forecasting accuracy for Years 6 through 10.? Use one of the evaluation methods we have discussed.?b)? What would be the forecast for Year 11 using both the weighted moving average and the exponential smoothing methods?3.? (24 points)Merrimac Manufacturing has always purchased a certain component part from a supplier on the East Coast for $50 per part.? The supplier is reliable and has maintained the same price structure for years.? Recent improvements in operations and reduced product demand have cleared up some capacity in Merrimac?s own plant for producing component parts.? The particular part in question can be produced internally by Merrimac at $20 per part, with an annual fixed investment of $27,000.?a) Over what range (quantity) of product would each of the two options be the preferred one?b)? As an alternative, a new supplier located nearby is offering to produce parts on the following cost schedule.? For the first 100 parts, the cost is $52 per part.? For each part in excess of 100, the cost per unit drops to $46 per part.? Considering just the two suppliers, over what range (quantity) of product would each supplier be the preferred one?c) The company is now

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