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wriston circumstance LMS

 Essay about wriston case LMS

Wriston Developing

S. Chopra/Operations/Strategy

1

Wriston Manufacturing

Burden Rates (total overhead cost / immediate labor cost)

7

6

5

4

3

two

1

0

Sanduski

Detroit

Lima

Lebanon

Saginaw

Essex

Tiffin

Freemont

Tiffin

Freemont

Maysville

Cost-free capacity and Throughput

160

140

a hundred and twenty

100

85

60

forty

20

0

Sanduski

T. Chopra/Operations/Strategy

Of detroit

Lima

Lebanon

Saginaw

Essex

Maysville

two

Wriston Manufacturing Corp:

ALSO Burden prices: Economies of Scale?

Revenue vs . burden

7

Detroit

(20, thirty four. 8)

6

Essex

Lima (4, twenty-two. 6)

(4, 12)

five

Saginaw

(10, 94. 2)

Sandusky

(5, 66. 8)

Burden

four

Tiffin

(6, 91. 6)

3

Lebenon

(2, 72. 6)

2

Fremont

(10, 158)

Maysville

(2, 110)

1

zero

0

20

S. Chopra/Operations/Strategy

40

62

80

75

Sales

one hundred twenty

140

one hundred sixty

3

180

Wriston Production Corporation

Exp. Burden = 4. 37658 - 0. 01730*Sales + 0. 13084 # People

(R. Sq =. 82, p-value = 1 . 29% families, zero. 95% Sales ).

Wriston Manufacturing Company

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In the event Detroit production is relocated to Maysville

– Families sama dengan 22, Revenue = a hundred and forty four. 8

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Implied burden rate by Maysville sama dengan 4. 75 (at 100%

effectiveness) or 4. 75/1. 17 sama dengan 4. 06 (at 117% effectiveness)

Burden rate on 20 families from Detroit could decline but

burden rate on the two households at Mayville (representing

$110 million in sales) would increase substantially

S. Chopra/Operations/Strategy

5

Wriston Manufacturing Takeaways

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пЃµ

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Necessary capabilities modify with market segment

and product life pattern. As a result firm may need to

develop conflicting capabilities

Key drivers of overhead include variety and scale.

Overhead every unit boosts with selection and decrease

with scale.

Focused factories, every focused on a single capability,

take care of conflicting capabilities better than a single

factory planning to provide all capabilities

S i9000. Chopra/Operations/Strategy

6

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