ABC Ceramics Inc. makes four (4) models of ceramic vases for a chain of department stores. The figures for output that has passed the quality inspections, as well as the main inputs, are shown below. The company pays its direct workforce $10.00 per hour on the average, and the cost of the pound of materials is $4.00 for all models, despite the fact that each model of vase needs material from a different supplier.
VASE MODEL A B C D
Production per week (units) 180 400 500 350
#Workers (workers) 4 4 5 6
Hours per week per worker (hrs/worker) 44 48 52 36
Material used for the weekly production (lbs) 255 570 720 500
Plant overhead per week ($) 927 1960 2550 1820
The management asked you to make recommendations regarding certain decision areas and specifically indicated that your comments should be based on PRODUCTIVITY ANALYSIS.
There are four (4) parts of this question, and they are:
A.) As the company wants to streamline its activities, which model do you recommend to be discontinued, and why?
A , B, C, OR D ? choose one.
What was the criterion that made you recommend the discontinuance of the model that you recommended?
hould the company discuss the quality of materials with any of its four suppliers, in
case there are significant differences between the models?
Yes, with all suppliers
No, there are no significant differences
Yes, with suppliers of material for C and D
Yes, with suppliers of material for D
d. ) Is there a reason to analyze in more depth one or several of the models with respect
to how effectively and efficiently the labour is utilized?
No, no need, they are all similar
Yes, for B & C
Yes, for B
Yes, for C & D
Yes, for D
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more