Remaining Time: 1 hour, 58 minutes, 24 seconds Question Completion Status: QUESTION 2 A process has low fixed costs and high variable costs. It is currently capacity contrained the impact of efficiene Formulas Little's Law: Inventory (1) Flow rate (R) x Flow time (T) Capacity = Resources / Processing time Flow rate = Minimum {Demand, Capacity measured in number of flow units per unit of time Utilization = Flow rate / Capacity Cycle time = 1/Flow rate Time to make Q units = Cycle time Q Profit = Flow rate (Average price - Average cost) Profit = Flow rate (Average price - Variable Cost) - Fixed Cost Costs of direct labor = (Wages per unit of time) / (Flow rate) Average labor utilization = Average utilization across employees Tii 11! Idle time (resource i) = Cycle time - Processing time (resource i) Average Labor Utilization = (Sum of processing times) / (Sum of processing times + Idle time) Takt time = (Available time) / (Required quantity) Target manpower = (Sum of processing times) / (Takt time) Gross Margin = (Price - Variable Cost) / Price For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). 14px BIU & Paragraph Arial nd Submit to save and submit. Click Save All Answers to save all answers. dery improvement en profits bo small or large? Please justify your answer. ULLABORE E x X2 process has low fixed costs and high variable costs. It is currently capacity - constrained . Will the impact of efficience improvement on profits be small or large? Please justify your answer. Formulas Little's Law : Inventory () = Flow rate (R) x Flow time (T) Capacity = Resources / Processing time Flow rate = Minimum { Demand, Capacity measured in number of flow units per unit of time Utilization = Flow rate / Capacity Cycle time = 1/ Flow rate Time to make Q units = Cycle time XQ Profit = Flow rate Average price - Average cost ) Profit = Flow rate (Average price - Variable Cost) - Fixed Cost Costs of direct labor = ( Wages per unit of time )/(Flow rate ) Average labor utilization = Average utilization across employees Idle time ( resource 1) = Cycle time - Processing time ( resource) Average Labor Utilization = (Sum of processing times)/(Sum of processing times + Idle time ) Takt time = ( Available time )/(Required quantity ) Target manpower = (Sum of processing times) (Takt time ) Gross Margin = (Price - Variable Cost) /Price For the toolbar press ALT + F10 ( PC ) or ALT + FN + F10 (Mac). Arial V Remaining Time: 1 hour, 58 minutes, 24 seconds Question Completion Status: QUESTION 2 A process has low fixed costs and high variable costs. It is currently capacity contrained the impact of efficiene Formulas Little's Law: Inventory (1) Flow rate (R) x Flow time (T) Capacity = Resources / Processing time Flow rate = Minimum {Demand, Capacity measured in number of flow units per unit of time Utilization = Flow rate / Capacity Cycle time = 1/Flow rate Time to make Q units = Cycle time Q Profit = Flow rate (Average price - Average cost) Profit = Flow rate (Average price - Variable Cost) - Fixed Cost Costs of direct labor = (Wages per unit of time) / (Flow rate) Average labor utilization = Average utilization across employees Tii 11! Idle time (resource i) = Cycle time - Processing time (resource i) Average Labor Utilization = (Sum of processing times) / (Sum of processing times + Idle time) Takt time = (Available time) / (Required quantity) Target manpower = (Sum of processing times) / (Takt time) Gross Margin = (Price - Variable Cost) / Price For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). 14px BIU & Paragraph Arial nd Submit to save and submit. Click Save All Answers to save all answers. dery improvement en profits bo small or large? Please justify your answer. ULLABORE E x X2 process has low fixed costs and high variable costs. It is currently capacity - constrained . Will the impact of efficience improvement on profits be small or large? Please justify your answer. Formulas Little's Law : Inventory () = Flow rate (R) x Flow time (T) Capacity = Resources / Processing time Flow rate = Minimum { Demand, Capacity measured in number of flow units per unit of time Utilization = Flow rate / Capacity Cycle time = 1/ Flow rate Time to make Q units = Cycle time XQ Profit = Flow rate Average price - Average cost ) Profit = Flow rate (Average price - Variable Cost) - Fixed Cost Costs of direct labor = ( Wages per unit of time )/(Flow rate ) Average labor utilization = Average utilization across employees Idle time ( resource 1) = Cycle time - Processing time ( resource) Average Labor Utilization = (Sum of processing times)/(Sum of processing times + Idle time ) Takt time = ( Available time )/(Required quantity ) Target manpower = (Sum of processing times) (Takt time ) Gross Margin = (Price - Variable Cost) /Price For the toolbar press ALT + F10 ( PC ) or ALT + FN + F10 (Mac). Arial V