Operations

Introduction
examination One
Based on the information presented in the scenario/ fibre study discuss mollymawk Anchors engagement in relation to (please address all items in the on a lower floor list and provide support for your conclusions):
1. Cost
a) Cost of deed: $8.00 per pound for the cost anchor and $11.00 per pound for the snag betray anchor.
b) Economies of Scale in material purchasing:
Due to the bon tons lack of being able to produce orders on a large scale, the company
is unable to determine the economics of scale.
c) Cost of Raw Materials Sitting Idle in the w arehouse:
Due to a lack of space, both rough materials and finish goods have to share the same space. This is likely to cause Albatross Anchors cost of raw materials to run a lot higher than their competition. This definitely puts Albatross at a disadvantage.
d) Cost of Finished Goods Sitting Idle in the store:
As mentioned in the previous statement, both finished goods and raw materials share the same space, thereby putting Albatross at a disadvantage thus leading to the 35% slight in profit.




2. Speed of manufacturing process from order to finished product.
It takes some 36 hours to switch over the manufacturing/operations process.



When compared to other evenly sized or larger companies, which are more innovational in technology and production, Albatross once again finds itself at a disadvantage. In addition to the lack of updated technology, there are also safety concerns due to the building being gaga and outdated.
3. Flexibility in filling order(s)
4. Technology
5. Capacity and facilities
6. Service to customers
Question Two
There are many ways that mushroom/bell anchors may be manufactured. Albatross Anchor is considering two spick-and-span manufacturing processes (Process A and Process B) to reduce costs. Analysis of the information down the stairs will help determine which process has the lowest breakeven depict (this validates the process is more cost...If you want to get a all-encompassing essay, order it on our website: Ordercustompaper.com



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