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Chapter 1: Q.3-1C (page 71)
What are IKEA鈥檚 competitive priorities?
Competitive priorities connote an essential spotlight on building explicit assembling abilities that can advance a plant's situation on the lookout.
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Question: Various financial data for the past two years follow. Calculate the total productivity measure and the partial measures for labor, capital, and raw materials for this company for both years. What do these measures tell you about this company?
Management may choose to build up capacity in anticipation of demand or in response to developing demand. Cite the advantages and disadvantages of both approaches.
Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay2 chip, will take two years to develop. However, because other chip manufacturers will be able to copy the technology, it will have a market life of two years after it is introduced. Perot expects to be able to price the chip higher in the first year, and it anticipates a significant production cost reduction after the first year as well. The relevant information for developing and selling the Patay2 is given below
Patay2 Chip Product Estimates
Patay2 Chip Project Timing
a. What are this project's yearly cash flows and their present value (discounted at 10 percent)? What is the net present value?
b. Perot鈥檚 engineers have determined that spending \(10 million more on developmentwill allow them to add even more advanced features. Having a more advanced chipwill allow them to price the chip \)50 higher in both years (\(870 for year 1 and \)700for year 2). Is it worth the additional investment?
c. c. If sales are only 200,000 the first year and 100,000 the second year, would Perot stilldo the project?
Question:As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report:
Find the average of the monthly productivity figures (units per machine hour).
How often should a company develop and refine its operations and supply chain strategy?
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