Engines Corp

question 58

Essay

Engines Corp. builds two different types of motors in three departments. Historically, department X uses 20%, department Y uses 50%, and department Z uses 30% of direct labor and machine time, respectively. In the next quarter, demand for Model A is expected to be 40,000 units, and demand for Model B is expected to be for 50,000 units. The CPOPF planning factors are: direct labor for Model A = 0.667 hrs./unit, machine time for Model A = 1.75 hrs./unit, direct labor for Model B = 1.087 hrs./unit, machine time for Model B = 0.261 hrs./unit. Calculate the amount of labor and machine time that will need to be allocated to each of the three departments next quarter.

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Definitions:

Undifferentiated

In marketing, this refers to a strategy where a company chooses not to segment the market but rather targets the whole market with one product or service.

Differentiated Targeting Strategy

A strategy through which a firm targets several market segments with a different offering for each.

Undifferentiated Strategy

A marketing approach where a product is marketed to the entire market with no segmentation, assuming all customers have similar needs.

Concentrated

Refers to a strategy that focuses efforts and resources on a specific, narrow market segment or audience.