The bathtub theory of operations management is being - id11034025 от shondi 10.06.2021 23:58

Question

Business: The bathtub theory of operations management is being promoted as the next breakthrough for global competitiveness. The factory is a bathtub with 50 gallons of capacity. The drain is the outlet to the market and can output 2.5 gallons per hour when wide open. The faucet is the raw material input and can let material in at a rate of five gallons per hour. Now, to test your comprehension of the intricacies of operations (assume the bathtub is empty to begin with): a-1. What is the maximum rate (gallons

shondi · Accepted Answer

2.20Explanation:The Price elasticity will be:Δdemand/ΔPriceThe mid point is used to calculate the increases.Δdemand = ΔQ/midpointQ(Q2+Q1)/2 = mid point quantity = (300+ 200)/2 = 250ΔQ = 300-200 = 100Δdemand = 100/250 = 0.4Same procedure is applied with the Price numbers:Δprice = ΔP/midpointP(P2+P1)/2 = mid point price = (3+ 2.5)/2 = 2.75ΔP = 2.5-3 = 0.5Δprice = 0.5 / 2.75 = 0.181818FInally we calculate the price elasticity:Δdemand/ΔPrice0.4/0.1818181818 = 2.2...

The bathtub theory of operations management is being promoted as the next breakthrough

Popular Questions about the subject: Business

New questions by subject

We expand our knowledge with many expert answers