An Organization Is Considering Three Process Configuration Options

question 18

Essay

An organization is considering three process configuration options. There are two different intermittent processes, as well as a repetitive focus. The smaller intermittent process has fixed costs of $3,000 per month, and variable costs of $10 per unit. The larger intermittent process has fixed costs of $12,000 per month and variable costs of $2 per unit. A repetitive focus plant has fixed costs of $50,000 and variable costs of $1 per unit.
a. If the company produced 20,000 units, what would be its cost under each of the three choices?
b. Which process offers the lowest cost to produce 40,000 units?
What is that cost?

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Definitions:

Fromm

Erich Fromm was a psychoanalyst and social psychologist who explored the interaction between psychology and society, emphasizing the importance of love, freedom, and authentic human connection.

Horney's Psychoanalytic

Karen Horney's approach to psychoanalysis, which challenges Freud's theories, emphasizing social relationships and culture over biological drives in the development of personality.

Neurotic Needs

In Karen Horney's theory, these are irrational strategies for coping with emotional distress that can lead to unhealthy behavior patterns.

Case Study

A research method involving an up-close, in-depth, and detailed examination of a subject of study, as well as its related contextual conditions.