Your manager comes in with three sets of proposals for a new production process. Each process uses three inputs: land, labor, and capital. Under proposal A, the firm would be producing an output where the MPP of land is 30, labor is 42, and capital is 36. Under proposal B, at the output produced the MPP would be 20 for land, 35 for labor, and 96 for capital. Under proposal C, the MPP would be 40 for land, 56 for labor, and 36 for capital. Inputs' cost per hour is $5 for land, $7 for labor, and $6 for capital.
a. Which proposal would you adopt?
b. If the price of labor rises to $14, how will your answer change?© BrainMass Inc. brainmass.com October 24, 2018, 10:50 pm ad1c9bdddf
The marginal physical product (MPP) tells us how productive the input will be. We want to maximize MPP, but also keep costs reasonable. In other words, the firm wants to find the most economically efficient input mix. This is found where the marginal rate of technical substitution between the inputs equals the factor price ratio. The marginal rate of technical substitution is equal to the ratio of the marginal ...
Evaluation proposals for a new production process using land, labor and capital
Project Proposal: Operations Management
I need an expert in operations management I can work with to solve my attached individual project. It's a three part assignment: proposal, outline and final report.
Your task for this Week is to prepare and hand in a Project Proposal that includes the nature of the project, the sources of information you plan to use, and the most important concepts and techniques to be applied. You will receive feedback on the proposal from the Instructor next Week, which will give you time to make adjustments.
You are required to complete a course project that reveals mastery in application of the operations management concepts emphasised in the course. This involves reporting on a specific operation or process for an organization and the operations management practices that affect the performance of that particular operation/process. The project should be a formal business report that provides information regarding the strategic objectives of the organization as well as the strategy of the specific operation/process. With regard to the specific operation/process chosen, the report should effectively analyze its design, organization, technology, planning and control aspects, and strategies for improvement, preventing failure, and ensuring quality. Evaluation and analysis of these areas are to be supported with operations management concepts you have covered throughout the module.
For this project, you will select a specific operation or process within a company that you are familiar with or work for. Your tasks are as follows:
1. Identify the strategic objectives of the organization.
2. Analyse how the strategy of the selected operation/process is aligned with the strategic objectives of the organization based on the performance objectives and characteristics of the operation/process.
3. Evaluate the overall design of the operation/process regarding its total supply network, location of capacity, physical layout, and jobs.
4. Assess the deployment of technology within the operation/process based on the performance objectives as well as volume-variety characteristics.
5. Evaluate the planning and control methods or approaches for managing the demand and capacity of the operation/process.
6. Analyse the techniques utilised for improvement of the operation/process, as well as for detecting/preventing failure and ensuring quality.
Your Final Project should follow the given outline: ()
1. Brief description of company and operation/process selected
2. Strategic objectives of organization and operation/process
3. Operation/process design
4. Utilisation of technology
5. Planning and control of the operation/process
6. Improvement, failure, and quality
Your Final Project should also include a section on how and where you obtained the information sources and the methodology used to perform any analysis. This project should follow a structured approach and should be prepared and presented as a professional business report. Please be sure your report adheres to the Harvard Referencing System.View Full Posting Details