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Ch.1 Intro OpM
DS 412 TEST 1
Question | Answer |
---|---|
Productivity = | output/input or total rev/total costs or (P.Q)/TC |
When do revenues exceed costs? | Total Annual Rev= Total Annual Cost |
When do revenues exceed costs2? | Total Annual Revenue = Ann. Fixed Cost + Ann. Variable Cost |
PQ = | F + c.Q (P=price $/unit,c=Variable cost in $/unit,F=ann.fixed cost $/yr,Q=number of units produced) |
Production determines: | F & c |
Marketing determines: | P & C |
Break Even Analysis (BEA) | Q = F/(P-c) |
When given 2 eq & costs stayed the same (looking for F & c costs) | TC=F+c.Q |
Make or Buy | Fm + Cm*Q = Fb + Cb*Q m=make; b=buy # units needed per yr exceed BE volume (Q)? |
Process Focused | low volume customized products (aircraft, interior design) |
Product-focused | high volume standard (paper clips, tires, floppy disks) |
Life cycle | Introduction, growth, maturity, decline, death |