Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 5, Problem 25P
Summary Introduction
Interpretation: Efficiency of using the system.
Concept introduction: Efficiency is the capability to prevent energy,money,effort, wasting materials and time in doing something or in generating a required result.
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The question comes out of my "Practical Operations Management's" textbook.
Tube Country rents circular rubber rafts that its customers use to float down the Ichituckni River. Tube Country owns a fleet of 200 rafts, each of which is returned on the same day it is rented, and each raft can only be rented once during a business day. Rough water along the Ichituckni River often causes rafts to become scratched and leak air, so the staff at Tube Country is constantly repairing rafts before their next rental. As a result, Tube Country estimates that 5% of its rental fleet is unavailable for rent at any given time. Tube Country rents rafts for $5 each, and incurs $1.00 in variable costs with each raft rental. Tube Country must also pay $20,000 in fixed business costs annually.
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Chapter 5 Solutions
Practical Operations Management
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3P
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