Operation Management

Slides:

Advertisements

Similar presentations

1.Determine pricing objectives 2.Study costs 3.Estimate consumer demand 4.Study the competitions prices 5.Decide on a pricing strategy 6.Set price.

Advertisements

Strategic Control Control is taking measures that synchronize outcomes as closely as possible with plans Traditionally, has been almost completely based.

Chapter 14 Measuring and Assigning Costs for Income Statements

AKUNTANSI MANAJEMEN. O The cost-volume-profit study is the manner of how to evolve the total revenues, the total costs and operating profit, as changes.

Topic 1.3 Putting a Business Idea into Practice

Contemporary Engineering Economics, 4 th edition, © 2007 Estimating Profit from Production Lecture No. 31 Chapter 8 Contemporary Engineering Economics.

BMM4733_Quality Engineering

Cost-Profit-Volume Analysis Samir K Mahajan. BREAK -EVEN ANALYSIS Break –even Analysis refer to a system of determination of activity where total cost.

MARGINAL COST OR VARIABLE COST OR DIRECT COST

Applications of Discount & Markup Example 1: Sam’s Electronics has a movie camera on sale for $560. The original price was $800. Determine the percent.

Marginal and absorption costing

Break-Even Chart A Business supplies the following figures about its activities: Fixed Costs: = €300,000 Variable Cost: = €20 per unit Forecast output.

Lecture 24 Practice Questions.

The importance of Gross margin Example 1: Sales price ok, sales volume ok compared to the size of the company: Sales income100 units x

1. Describe and illustrate income reporting under variable costing and absorption costing. 2. Describe and illustrate income analysis under variable costing.

Do most companies like Netflix try to understand how the costs of the company behave? 1.Yes 2.No.

Accept Or Reject Special Order Decision

Pricing Chapter 19. Pricing Price Price Barter Barter Price equation Price equation.

Investment Analysis Problem: A company propose to Purchase a machinery for Rs.1,00,000. The life of the machinery is 5 years. The Cash inflow of the machinery.

1 MAKE OR BUY PARTS AND COMPONENT DECISION A manufacturing enterprise may produce products using various types of parts, components. All these parts have.

Copyright © 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Slide 1- 1 Homework, Page 160 Write a mathematical expression for the quantity.

Cost-Volume-Profit Analysis Chapter 18 PowerPoint Editor: Beth Kane, MBA, CPA Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction.

AS Business Studies Marketing

PACKAGES LIMITED MARKET CAPITALIZATION (US $ ‘000)

Lecture 3 Cost-Volume-Profit Analysis. Contribution Margin The Basic Profit Equation Break-even Analysis Solving for targeted profits.

Compound Interest Amount invested = £3000 Interest Rate = 4% Interest at end of Year 1= 4% of £3000 = 0.04 x £3000 = £120 Amount at end of Year 1= £3120.

Capital Budgeting.

© Ahmad Zahiruddin Yahya 2011 Quick Check Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the.

@ 2012, Cengage Learning Differential Analysis, Product Pricing, and Activity-Based Costing LO 1c – Make or Buy Decisions and Replace Equipment Decisions.

Relevant Cash Flows. Kenny, Inc

Objectives Analyze costs and expenses to determine break even point Recognize consumer perceptions based on price Consider legal and ethical pricing issues.

Pricing. The Marketing Mix 1)Product 2)Pricing 3)Place 4)Promotion.

Healthcare operations management. 16 marks/2 marks 1.Outline the essence of health economics 2.Differentiate between macro and micro economics 3.Explain.

PowerPoint presentation to accompany Heizer/Render - Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc.,

Contemporary Engineering Economics, 6 th edition Park Copyright © 2016 by Pearson Education, Inc. All Rights Reserved Estimating Profit from Production.

Pricing Strategy.  Focus on the value of your product / service delivers  Value = perceived benefits Price Know your competitor Reward staff for sales.

Assessing Viability Viability is… … the practical potential of a start-up business idea to survive and grow in the marketplace.

EXCERCISES ON BES. Compute the Break-even sales in pesos and units 1.A product line is sold at a unit selling price of P9.00. Variable cost is estimated.

Cost & Management Accounting Break-even Analysis Lecture-31 Mian Ahmad Farhan (ACA)

Flexible Budgets Static Budget Based on estimate of sales and production levels Compare costs associated with actual production to costs for budgeted production.

Welcome Back Atef Abuelaish1. Welcome Back Time for Any Question Atef Abuelaish2.

AAT Level 3 Limiting Factors. Objectives 1. Explain what production decisions are required when resources are scarce 2. State the steps to calculate limiting.

Cost & Management Accounting Lecturer-45. RA & RB Company owns a department store. It sells three major lines of their products in three departments.

Algebra of Functions Let f and g be functions with domains D and E respectively. Define new functions from D E -> R by (f+g)(x) = f(x) + g(x) (f-g)(x)

Variable versus Fixed Costs

Break-even Analysis Lecture-30 Main Ahmad Farhan.

Examples Example A: … Price 2 Units Costs 1,5 Total Income

AMIS 310 Foundations of Accounting

Variable cost (e.g. materials) = £5 per unit

Break Even Analysis All: Understand / review what is break even analysis Most: calculate and present break even Some: Explain how break even is an internal.

Operation Management Dr. Aravind Banakar –

Business Communication Dr. Aravind Banakar –

Operation Management

Project Management

Project Management

Project Management

Business Communication

Project Management

Business Communication

Algebra: Graphs, Functions, and Linear Systems

Strategic Control Control is taking measures that synchronize outcomes as closely as possible with plans Traditionally, has been almost completely based.

Lesson 15-2 Determining Breakeven

Estimating Revenues, Costs & Profits

Break-Even Chart A Business supplies the following figures about its activities: Fixed Costs: = €300,000 Variable Cost: = €20 per unit Forecast output.

Cost & Management Accounting

AMIS 3300 Chapter 9.

Lesson 15-2 Determining Breakeven

Cost Volume Profit Analysis

Cost & Management Accounting

Presentation transcript:

Operation Management

Operation Management CASE STUDY (20 Marks) A company is planning to manufacture tennis rackets and has to decide location of the plant. The locations being considered are: Mysore, Bangalore and Hosour. The fixed costs located at these three locations are estimated to be rs. 30 lacs, rs. 50 lacs and rs. 25 lacs per annum respectively. The variable costs are rs. 300, rs. 200 and rs. 350 per unit respectively. The expected sales price of a tennis racket is rs. 700 per unit.

Answer the following question. Q1. Find out: the range of annual production/ sales volume for which each location is most suitable for 5000/10000/15000units per annum. Q2. Find out: the range of annual production/ sales volume for which each location is most suitable for 20000/25000 units per annum.