Question
7. Hoffy Beer Corporation has a beer processing facility located in Hoffman Estates, IL. The beer facility has a system efficiency of 92% and the
7. Hoffy Beer Corporation has a beer processing facility located in Hoffman Estates, IL. The beer facility has a system efficiency of 92% and the utilization is 85%. Three beer lines are operated 5 days a week and three 8-hour shifts per day. What is the weekly effective capacity for the facility if it takes 1 second to produce a six-pack?
10. Sarahs Cookies. In Sarasota, FL, makes two types of cookies chocolate chip and oatmeal. Chocolate chip cookies have been selling more than oatmeal cookies. A box of chocolate chip cookies costs the company $1.20 and a box of oatmeal cookies costs $1.10. The company has budgeted $120,000 a month to manufacture both boxes of cookies. The manufacturing is accomplished with 50 manufacturing department employees who work 8 hours a day, 5 days a week, and for 4 weeks during the month of September. Using the resources available as maximum resources, determine the design capacities or how many units of each type of cookies can be manufactured.
15. Wakarusa Chocolate Factory is considering the possibility of building an additional facility to add another product line. There are currenty two options- buy an existing space or build a brand-new space. Buying an existing space will cost $2 million. If demand is low, the company expects to receive $4 million in discounted revenues (present value). If demand is high, it expects $6 million in discounted revenues. For the second option, the cost is $5 million. For low demand, the company expects $5 million in discounted revenues and if demand is high, the company expects $8 million. The probability of demand being high is 45%. What should Wakarusa Chocolate Factory do?
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