Production/Operations Management and Business Policy advice for Excelsior

[jmichelle79]

At CSU Pueblo I know that the 311, 468 and 485 course were accepted last year for me.

What courses did these transfer into at tesc?

Thanks

[irnbru]

I've seen several people on here who have completed the CSU-Peublo 311 course. I was wondering if someone could assist with a problem. I am having a very hard time with these problems.
Here's the problem:

1. Sammy Sleaze has decided to illegally copy CD’s to sell in his CD store. There are several possible CD copiers that sales reps have shown him. Machine A has a fixed cost of $900 with a variable cost of $1 per unit. Machine B has a fixed cost of $3500 with a variable cost of $0.85 per unit. Machine C has a fixed cost of $10,000 with a variable cost of $0.40 per unit.

a. Mathematically calculate the point (in CD’s copied) at which the total costs are equal between machines A and B. You must show your work for full credit.

b. Mathematically calculate the point (in CD’s copied) at which the total costs are equal between machines A and C. You must show your work for full credit.

c. Mathematically calculate the point (in CD’s copied) at which the total costs are equal between machines B and C. You must show your work for full credit.

d. For each machine A, B and C, draw the total cost lines on the graph included. Label all important points. Please turn the page 90 degrees clockwise for best fit of the data on the graph. Neatness and proper scaling count.

e. Write a decision rule for selection of machines based on anticipated number of CD’s copied

I have all the excel OM software but there are so many files, I'm not sure which one to use, if any...Thank you so much for the assistance. Not really looking for the answers, I just can't figure this out.

Thanks again,

- Steve

Okie, the first question is asking how many cds will be produced when the amount of money thrown at both machines is the same. This means you are trying to find a single unknown, let's call it x.

The fixed costs are constant and will be treated as such. The variable costs depend on how many cds are produced.

For x number of cds, machine A will cost $900 plus however many cds are produced. So this becomes:

900 + 1*x

Machines B and C will cost respectively:

3500 + 0.85*x
10000 + 0.4*x

Since we want to find out how many cds will be produced when the cost is the same, for question a. we equate the costs of Machines A and B:

900 + x = 3500 +0.85x

An equation in one variable which we can solve for x:

0.15x = 2600
x=2600/0.15
x= -----.- repeating

So, when machines A and B produce -----.- cds, the cost is the same. Since we don't make a third of cds, round up to the nearest whole number, -----.

We can plug this value back into either cost equation to verify the cost is equivalent:

900 + (-----.-) = 3500 + 0.85(-----.-) = -----.- USD

The same process is used for questions b. and c.

Machine A and Machine C:

900 + x = 10000 + 0.4x

Solving for x leads us to x = -----.-

Machines B and C:

3500 + 0.85x = 10000 + 0.4x

Solving for x leads us to x = -----.-

Graphs

To draw the graph for each machine, just notice that Machine A's cost function (900 + 1*x) is a linear function. So, it will graph exactly like any function y = ax + b. In this case it has a gradient of 1 (45' angle) and will cut the y axis at b, which will be $900.

Can't remember how to do decision rules so hopefully someone else or google will do the work for you

Hope this helps.


edit: Just noticed you've been posting this question elsewhere, Stephen. Glad to have got in, first

[bkahuna]

Also you can use the Excel OM plugin for this. Read the documentation it will make the graphs for you and allow you to check your work.

I'd reccomend working the problem manually from scratch again, checking your answer with irnbru's, then use the excel OM software and verify that way you've got it down

For the decision rule I just worked a scenario for each price break and chose the appropriate one.

[dc1wynot]

Thank you both VERY much. I'll try again this afternoon. I did have a question about the OM software. I installed it but there are several different "templates". Which one specifically would I use for this problem.

Sorry, if I sound a bit behind. I'm in the military and have been out of school for over 18 years. Thanks for all the assistance!
It is much appreciated!

- Steve

[bkahuna]

There is one in the menu thats called break even or something like that.

I dont have it installed anymore so I cant tell you exactly but if you look at the titles it should be apparent.

Just dig around in there and put in some of the test data. Once you fiddle around with it you'll see it does lots of great stuff

[dc1wynot]

I just wanted to come back and post in regards to this course.

I agree with all the comments. This professor was very responsive AND you can tell loves his job. The course over all has its tough points but I expected it to...it is an upper level management course. The last exam I kind of slacked a bit and ended up with a final grade of an A. So, I was pretty happy. I will be using it for my operations management requirement for Excelsior. Hopefully I wont have any problems getting them to transcribe it in.

Thanks again guys on this board for the problem assistance.

- Steve

[jackbanta]

Ok, I'm feeling a little bit stupid. I just read the first chapter and I'm attempting to do the first AE, which is listing the inputs, transformation process, outputs and feedback loops for a fictional computer store. I'm having a hard time drawing the line on where an input ends and a process begins. This is what I have:

Inputs
Startup Money (Capital) Buys:
*Materials:
- Cases
- Keyboards
- Mice (Mouses?)
- Monitors
- CPUs
- CD-DVD Roms
- Hard disks
- Sound cards
- Wifi cards
- Wired network cards
- Motherboards
- RAM
- Operating Systems
- Additional Software
*Building (Store)
*Equipment:
- Lab bench
- Screwdrivers
- Pliers
- Test equipment
*Labor:
- Computer repair and assembly workers with sufficient technical knowledge
*Management
- To articulate a clear plan for computer assembly
- Acquire the proper quantities of supplies/employees

Are the things I'm listing under management inputs or processes? I know that the book has Labor, capital, and management under inputs in the diagram, I'm just having a difficult time seperating between the planning and controlling functions. Maybe I'm just overthinking this.

Any help would be greatly appreciated, as usual.

[MISin08]

Maybe I'm just overthinking this.

Yes. You are on the right track but getting too detailed. All the components in your list -- that's inventory. One word.

Process (transformation) is what you do with the inputs.

From the Management CLEP, what management functions do your two examples fall under?

I hope this helps.

Phillip

[bkahuna]

I was going to check my materials from this (i think i'm the last person who completed it on the forums), but I forgot last night.

I think the inputs are what you have listed above, i'm not sure i had the management 'process' stuff as an input, and the output was computers and services. Something like that.

And yeah i think you're over thinking it, but I was very thorough when I completed the class so I think I did too.

My pointer to you would be to ask questions to the professor when you're in doubt. I should have asked a few more questions, though I did get an A, so I'm not THAT disappointed.

[jackbanta]

Yes. You are on the right track but getting too detailed. All the components in your list -- that's inventory. One word.

Process (transformation) is what you do with the inputs.

From the Management CLEP, what management functions do your two examples fall under?

I hope this helps.

Phillip

I guess where I'm having the trouble is understanding how to make this specific enough for the example. I mean, the Operations book has under "inputs", "labor, capital, management." So, I'd write computer parts, building employees, supervisor? Process would be "building computers, testing computers, fixing computers"? And output would be "new computers, fixed computers, diagnosed problems"?

I am going to take your advise, bkahuna, and email the professor tomorrow. I'm surprised at how hard of a time I'm having wrapping my head around this. I swear, I'm not normally this dense!