Larry's Wickets, Inc

question 96

Essay

Larry's Wickets, Inc. is producing two types of products: A and B. Both are produced at the same machining operation. Because of demand uncertainties, the operations manager obtained three demand forecasts (pessimistic, expected, and optimistic). The demand forecasts, batch sizes (units/batch), processing times (hr/unit), and setup times (hr/batch) follow.
The machines operate on two 8- hour shifts, 5 days per week, and 50 weeks per year. The manager wants to maintain a 20 percent capacity cushion.
a. What is the minimum number of hours required of the machining equipment for the next year?
b. How many hours of capacity can the company expect from each machine?
c. What is the minimum number of machines needed (assuming no reliance on short- term options)?
d. What is the maximum number of machines needed (assuming no reliance on short- term options)?

Understand the techniques of building and maintaining goodwill in business communication.

Differentiate between appropriate and inappropriate levels of formality and politeness in business communication.

Implement positive emphasis techniques to present information in a more favorable light.

Organize information in business documents to prioritize audience's needs and build goodwill.

---

Definitions:

Profits Equal Zero

A situation in which a firm's total revenue is exactly equal to its total costs, resulting in no net profit.

Economies of Scale

Cost efficiencies achieved by organizations through their operational scale, with per unit cost diminishing as the scale of production grows.

Monopolistically Competitive

Describes a market structure where many companies sell products that are similar but not identical, allowing for some degree of market power.

Product Differentiation

A strategy used by companies to distinguish their products from those of competitors based on features, quality, or design.