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    Problem Solving Week 2

    Uploaded by

    Ahmed Raeisi
    The document discusses Frito-Lay's chip production capacity over multiple scenarios. It provides data on the plant's daily operating hours and designed production rates. It asks questions to calculate capacities and outputs based on this data when accounting for factors like reduced hours of operation or lower designed capacities due to issues. The second section provides similar data for a bakery's roll production, asking to determine the design capacity, utilization, and efficiency.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Problem Solving Week 2

    Uploaded by

    Ahmed Raeisi
    16 views2 pages
    The document discusses Frito-Lay's chip production capacity over multiple scenarios. It provides data on the plant's daily operating hours and designed production rates. It asks questions to calculate capacities and outputs based on this data when accounting for factors like reduced hours of operation or lower designed capacities due to issues. The second section provides similar data for a bakery's roll production, asking to determine the design capacity, utilization, and efficiency.

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    The document discusses Frito-Lay's chip production capacity over multiple scenarios. It provides data on the plant's daily operating hours and designed production rates. It asks questions to calculate capacities and outputs based on this data when accounting for factors like reduced hours of operation or lower designed capacities due to issues. The second section provides similar data for a bakery's roll production, asking to determine the design capacity, utilization, and efficiency.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    16 views2 pages

    Problem Solving Week 2

    Uploaded by

    Ahmed Raeisi
    The document discusses Frito-Lay's chip production capacity over multiple scenarios. It provides data on the plant's daily operating hours and designed production rates. It asks questions to calculate capacities and outputs based on this data when accounting for factors like reduced hours of operation or lower designed capacities due to issues. The second section provides similar data for a bakery's roll production, asking to determine the design capacity, utilization, and efficiency.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Weekly Activities 2

    1. If machines at Frito-Lay are designed to 2,000 bags of chips/hr., and the plant operates 12hrs./day,
    what will be the design capacity

    2. If machines at Frito-Lay are designed to 3,000 bags of chips/hr., and the plant operates 10hrs./day
    but due to issues in the capacity there was 10% of designed capacity became lowered, what will be
    the design capacity ?

    3. If Frito-Lay loses 2 hours of output per day and design capacity was 3000 chips/hr and the plant
    operates 10hrs. What will be the effective capacity?

    4. If Frito-Lay loses 3 hours of output per day and design capacity was 3000 chips/hr and the plant
    operates 10hrs, but due to some issues the design capacity also was lowered 5%. What will be the
    effective capacity?

    5. There are 2 shifts. On average, if machines at Frito-Lay are not running 2 hr./shift due to late parts
    and machine breakdowns and the plant operates 10hrs , what will be the actual output when design
    capacity was 5000 chips/hr.

    6. Sara James Bakery has a plant for processing Deluxe breakfast rolls and wants to better understand
    its capability. Last week the facility produced 158,000 rolls. The effective capacity is 175,000 rolls.
    The production line operates 6 days per week, with three 6-hour shifts per day. The line was
    designed to process the nut-filled, cinnamon-flavored Deluxe roll at a rate of 1,300 per hour.
    Determine the design capacity, utilization, and efficiency for this plant when producing this Deluxe
    roll.

    7. Sara James Bakery has a plant for processing Deluxe breakfast rolls and wants to better understand
    its capability. Last week the facility produced 150,000 rolls. The production line operates 6 days per
    week, with two 6-hour shifts per day. The line was designed to process the nut-filled, cinnamon-
    flavored Deluxe roll at a rate of 1,500 per hour. Due to Determine the design capacity, effective
    capacity, utilization, efficiency, expected output for this plant when producing this Deluxe roll.

    Scenario 1: Alex's Handmade Candles

    Alex has always been passionate about creating unique and scented candles. He decides to turn this hobby into a
    business and set up a small shop. To determine the viability of his venture, he wishes to calculate his break-even
    point.

    Data:

    1. Fixed Costs: Rent for the shop, initial marketing campaigns, and administrative costs sum up to $8,000 per
    year.
    2. Direct Labour: Alex decides to employ a helper for which he sets aside a labour cost of $1.00 per candle.
    3. Material Costs: The wax, fragrance, wicks, and other materials cost Alex $0.60 per candle.
    4. Selling Price: After doing a market survey, Alex decides to sell each candle for $3.50.

    Tasks: Calculate BEP$ and BEPx


    Scenario 2: Maria's Organic Skincare

    Maria, a dermatologist, wishes to launch her line of organic skincare products, starting with a moisturising cream.
    Before mass-producing, she wants to gauge the financial metrics and find her break-even point.

    Data:

    1. Fixed Costs: Licensing, lab testing, and initial promotional costs are estimated to be $15,000 annually.

    2. Direct Labour: Packaging and quality testing cost Maria $2.00 per cream container.

    3. Material Costs: Organic ingredients, preservatives, and the container cost total up to $3.00 per unit.

    4. Selling Price: Based on perceived value and competitor pricing, Maria decides on a selling price of $10.00 per
    container.

    Tasks: Calculate BEP$ and BEPx

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