Your response provides a comprehensive overview of methods analysis and work measurement

as related to operations management, effectively addressing the assignment requirements.

You've articulated the significance of these concepts in improving operational efficiency and
productivity within Your Furniture Company. Here's a breakdown of your response and some
additional points to consider:
1. Methods Analysis and Work Measurement Overview:
● You aptly define methods analysis and work measurement, emphasizing their
importance in understanding how tasks are performed and determining the
standard time required for completion.
● You highlight the systematic approach involved in methods analysis, including
gathering information, documenting processes, analyzing the job, proposing new
methods, installing them, and following up on implementation.
● The explanation of work measurement techniques, such as time studies and
predetermined motion time systems, adds depth to the understanding of how
standards are established.
2. Application to Dining Table Assembler (DTA) Job Design:
● You outline how each step of the methods analysis procedure can be applied to
improve the efficiency of the assembly operation.
● You correctly identify the importance of analyzing the current assembly process,
identifying inefficiencies, proposing new methods, implementing changes, and
continuously monitoring their effectiveness.
3. Stopwatch Time Study Strategy for DTA Job:
● You propose a stopwatch time study strategy to establish a standard time for
completing the DTA tasks, aligning with the objectives of the operations
management team.
● By timing each step of the assembly process, you aim to set benchmarks for
performance evaluation and identify areas for improvement.
4. Update and Efficiency Improvement Recommendations:
● You suggest regular updates to the operations management team and CEO on
the progress toward meeting assembly goals.
● You emphasize the importance of analyzing root causes of inefficiencies and
delays and making recommendations for efficiency improvements, which aligns
with the continuous improvement approach.
5. Conclusion:
● The conclusion effectively summarizes the integration of methods analysis and
work measurement into the assembly process, highlighting the company's goal of
enhancing operational efficiency and responsiveness to customer demands.

Some suggestions to address the strategy aspect, consider adding a section that discusses
strategic implications and possible strategies for Your Furniture Company:
6. Strategic Implications and Possible Strategies:
● Your Furniture Company's adoption of lean operations signifies a strategic
commitment to efficiency and customer satisfaction. As the company faces
 challenges in the assembly process, it's essential to align operational
improvements with broader strategic goals.
● One possible strategy could be to invest in technology or automation to
streamline assembly tasks and reduce dependency on manual labor.
Implementing robotic assistance or automated assembly systems could enhance
speed and accuracy while reducing the risk of errors.
● Another strategy could involve cross-training assembly staff to increase flexibility
and agility in responding to fluctuations in demand. By having multi-skilled
workers who can perform various assembly tasks, the company can optimize
resource allocation and minimize bottlenecks.
● Additionally, implementing a Just-in-Time (JIT) inventory system could help
optimize inventory levels and reduce lead times in the assembly process. By
synchronizing production with customer demand, Your Furniture Company can
minimize waste and improve responsiveness to market fluctuations.
● Continuous improvement should be embedded in the company's strategic vision,
fostering a culture of innovation and adaptability. Encouraging employee
involvement in suggesting process improvements and providing incentives for
achieving efficiency gains can further reinforce this strategic direction.
By incorporating these strategic considerations, Your Furniture Company can not only address
current assembly challenges but also position itself for long-term success in a competitive
market landscape.

Overall, the paper appears to be well-written with no significant grammatical errors. However,
there are a few minor adjustments and formatting changes needed for APA style. Here's a
breakdown:
1. In-text Citations: The paper uses citations within the text, which is good, but it should
include the author's last name and the year of publication. For example, instead of just
mentioning "Stevenson, 2020," it should be "(Stevenson, 2020)." Make sure to do this
consistently throughout the paper.
2. References Section: The paper provides a reference to Stevenson's book but does not
format it correctly according to APA style. Here's the corrected reference:
Stevenson, W. J. (2020). Operations Management (14th ed.). McGraw-Hill Higher
Education.
Also, ensure that the link provided in the reference is accessible and accurate.
3. Capitalization in References: The book title in the reference should be italicized, as
shown above.
4. Consistency in Capitalization: Make sure to maintain consistency in capitalization
throughout the paper. For example, in the section "Update and Efficiency Improvement
Recommendations," some headings are fully capitalized ("DTA") while others are not
("Conclusion").
 5. Formatting of Subsections: The sections and subsections could be formatted more
clearly to distinguish them. For example, you can use bold or italics for subsection
headings to make them stand out.
6. Spacing: Ensure that there is consistent spacing throughout the paper, especially
between paragraphs and sections.
7. Overall Formatting: Check that the paper follows general APA formatting guidelines
regarding font size, margins, and spacing.
By addressing these points, the paper will adhere more closely to APA style conventions while
maintaining its clarity and professionalism.

−3= % change in price / % change in quantity demanded

​

%change in quantity demanded=(−2−(−3))×100%=1×100%=100%

You are on the right track. You are calculating the desired markup based on the change in price
elasticity of demand.

The desired markup is calculated as the reciprocal of the absolute value of the price elasticity of
demand. So, for the change from -2 to -3, the desired markup would be:
Desired markup=1∣−3∣=13≈0.33

And for the change from -2 to -1, the desired markup would be:
Desired markup=1∣−1∣=1

This is correct because a desired markup of 1 means that for every dollar the product costs, the
seller wants to make a dollar in profit, essentially doubling the price.
To proceed from here, they can use the desired markup to calculate the promotional price.
For example, if the normal price is $10, and the desired markup is 0.33:
Promotional price=Normal price×(1−Desired markup)
Promotional price=Normal price×(1−Desired markup)

Promotional price=$10×(1−0.33)
Promotional price=$10×(1−0.33)

Promotional price=$10×0.67
Promotional price=$10×0.67
Promotional price=$6.70
Promotional price=$6.70
So, with a desired markup of 0.33, the promotional price should be $6.70. This aligns with their
calculation. Similarly, they can calculate the promotional price for the desired markup of 1.

Let's calculate the promotional price for the desired markup of 1.

Given:
● Normal price = $10
● Desired markup = 1
We can use the formula:
Promotional price=Normal price×(1−Desired markup)
Promotional price=Normal price×(1−Desired markup)
Substitute the values:
Promotional price=$10×(1−1)

Promotional price=$10×0

Promotional price=$0

It seems there's an issue with this calculation. The promotional price can't be $0 if the desired
markup is 1. Let's reconsider how to calculate the promotional price for a desired markup of 1.
Since a desired markup of 1 implies doubling the price, we can calculate the promotional price
by adding the desired markup to the normal price:
Promotional price=Normal price+(Normal price×Desired markup)

Promotional price=$10+($10×1)

Promotional price=$10+$10

Promotional price=$20

So, with a desired markup of 1, the promotional price should be $20. This aligns with the idea of
doubling the price.

It seems there's a misunderstanding in the calculation. Let's clarify:

If the desired markup is 0.5 (which means the seller wants to increase the price by 50% of the
cost), we should apply the following calculation:
Promotional price=Normal price×(1+Desired markup)

Given:
● Normal price = $10
 ● Desired markup = 0.5
Substitute the values:
Promotional price=$10×(1+0.5)

Promotional price=$10×1.5

Promotional price=$15

So, with a desired markup of 0.5, the promotional price should be $15.
It seems the student made a mistake in the calculation by subtracting the desired markup from 1
instead of adding it to 1. Therefore, the correct calculation for a desired markup of 0.5 should
be:
Promotional price=$10×(1+0.5)=$15

Instead of:
Promotional price=$10×(1−0.5)=$5

I hope this clears up any confusion!

Let's clarify the concept of markup and how it relates to the change in price elasticity of demand.
When we talk about a desired markup, we're essentially expressing how much we want to
increase the price of a product relative to its cost. A markup of 0.5 means that the seller wants
to increase the price by 50% of the cost. Similarly, a markup of 1 means that the seller wants to
double the price.
Now, let's consider how this relates to the change in price elasticity of demand. Price elasticity of
demand measures how responsive the quantity demanded of a good is to a change in its price.
A more elastic demand (a higher absolute value of elasticity) means that consumers are more
sensitive to price changes.
When the price elasticity of demand changes from -2 to -3, it becomes more elastic, indicating
that consumers are becoming even more sensitive to price changes. In response to this
increased sensitivity, the seller might choose to apply a smaller markup to avoid losing too many
customers due to the price increase.
Conversely, if the price elasticity of demand changes from -2 to -1, it becomes less elastic,
indicating that consumers are less sensitive to price changes. In this case, the seller might feel
more comfortable applying a larger markup because customers are less likely to reduce their
purchases significantly in response to a price increase.
Therefore, the choice of whether to use a positive or negative desired markup depends on how
the change in price elasticity affects consumer sensitivity to price changes. In the case of a
decrease in elasticity (from -2 to -1), a positive desired markup may be appropriate, indicating a
willingness to increase the price by a larger amount. In the case of an increase in elasticity (from
-2 to -3), a negative desired markup may be more suitable, indicating a desire to increase the
price by a smaller amount to avoid losing too many customers.
CONCEPTS OF MARKUP AND HOW IT RELATES TO ELASTICITY of DEMAND.
Let's clarify the concept of markup and how it relates to the change in price elasticity of demand.
When we talk about a desired markup, we're essentially expressing how much we want to
increase the price of a product relative to its cost. A markup of 0.5 means that the seller wants
to increase the price by 50% of the cost. Similarly, a markup of 1 means that the seller wants to
double the price.
Now, let's consider how this relates to the change in price elasticity of demand. Price elasticity of
demand measures how responsive the quantity demanded of a good is to a change in its price.
A more elastic demand (a higher absolute value of elasticity) means that consumers are more
sensitive to price changes.
When the price elasticity of demand changes from -2 to -3, it becomes more elastic, indicating
that consumers are becoming even more sensitive to price changes. In response to this
increased sensitivity, the seller might choose to apply a smaller markup to avoid losing too many
customers due to the price increase.
Conversely, if the price elasticity of demand changes from -2 to -1, it becomes less elastic,
indicating that consumers are less sensitive to price changes. In this case, the seller might feel
more comfortable applying a larger markup because customers are less likely to reduce their
purchases significantly in response to a price increase.
Therefore, the choice of whether to use a positive or negative desired markup depends on how
the change in price elasticity affects consumer sensitivity to price changes. In the case of a
decrease in elasticity (from -2 to -1), a positive desired markup may be appropriate, indicating a
willingness to increase the price by a larger amount. In the case of an increase in elasticity (from
-2 to -3), a negative desired markup may be more suitable, indicating a desire to increase the
price by a smaller amount to avoid losing too many customers.

In economics, the price elasticity of demand measures the responsiveness of quantity

demanded to a change in price. It is typically expressed as a negative number because of the
inverse relationship between price and quantity demanded. When the price goes up, quantity
demanded tends to go down, and vice versa.
However, when we talk about the desired markup, we're discussing how much we want to
increase the price relative to its cost, which is a different concept. A desired markup of 0.5, for
example, means the seller wants to increase the price by 50% of the cost.
So, while the price elasticity of demand is typically negative, the desired markup can be either
positive or negative, depending on the context:
1. Positive Desired Markup: This indicates an intention to increase the price by a certain
percentage above the cost. For example, a desired markup of 0.5 means the seller
wants to increase the price by 50% of the cost.
2. Negative Desired Markup: This indicates a willingness to decrease the price by a certain
percentage below the cost. For example, a desired markup of -0.33 means the seller is
willing to decrease the price by 33% of the cost.