Operations Management 14th Edition William J Stevenson - Solutions

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Does Lean production work in the service sector? Provide an example.
Based on the descriptions and analyses in this chapter, would Boeing be better described as a global firm or a transnational firm? Discuss.
Identify and explain the four strategies that operations managers of international and multinational firms use to approach global opportunities .
Identify the mission and strategy of your automobile repair garage. What are the manifestations of the 10 strategic OM decisions at the garage? That is, how is each of the 10 decisions accomplished?
How does an OM strategy change during a product’s life cycle?
Given the discussion of Southwest Airlines in the text, define an operations strategy for that firm now that it has purchased AirTran.
An ideal mission statement is sufficiently descriptive when:a) Identifies the firm’s products/servicesb) Identifies the markets it is trying to servec) Specifies the buyer requirements it pursues to satisfyd) Provides the firm’s own identitye) All of the above
Outsourcing can improve a firm’s effectiveness when:a) An operation can be performed better and/or more cheaply by an outsiderb) It allows concentration on core activitiesc) It reduces the firm’s exposure riskd) It creates potential future competitione) All of the above
Companies that move material, people, or ideas across national boundaries, exploit economies of scale and learning as well as pressure for responsiveness pursue:a) An international strategyb) A multidomestic strategyc) A global strategyd) A transnational strategy
How is FedEx’s location a competitive advantage? Discuss.
Why have many manufacturing facilities relocated from Western Europe to Asia? Discuss the motives and risks.
Jaguar Land Rover has opened its first plant in China in 2014. Discuss the main reason for this decision.
Quickly review the location of shops and services in your local shopping centre. Can you find examples of clustering in the retail sector?
How can the centre-of-gravity method be used to find the best locations for local services such as public libraries, medical centres, or post offices? What constraints should be considered when the method is used in large, congested cities?
Distribution centres has a key role to assure quick home deliveryof the products, in online sales. What techniques can be employed by retailers to select the best locations for their distribution centres?
If Emarat Car Wash pays Dh40 per day to a worker in its main facility in Dubai, and two employees wash forty cars per day, the labour cost/car isa) Dh 40b) Dh 1c) Dh 0.5d) Dh 20e) Dh 2
On cost–volume analysis chart in location selection decisions, where two cost curves cross each other is also named no-difference point, because:a) The volumes of the decisions are not different in that pointb) The variable costs of the decisions are not different in that pointc) The total costs
The location decisions in the service and manufacturing sector mainly focus on revenue and cost. However, in public sector services such as hospitals, there are other key factors which should lead the location decisions for example (select two):a) Accessibilityb) Potential profitability for local
In order to generate a useful aggregate plan a number of features are required. This should include:a) A logical unit for measuring sales and output.b) A demand forecast for the intermediate planning period.c) A method to calculate the relevant costs.d) A model that combines forecasts and cost so
A number of techniques may be used to develop aggregate plans. This includes graphical techniques which:a) Are complex and difficult to use.b) Work with a few variables at a time to compare projected demand with existing capacity.c) Guarantee an optimal production plan.d ) Require significant
The aim of revenue management is to:a) Charge all customers the same prices for products.b) Allocate resources to customer at prices that minimise revenue.c) Increase product price when demand decreases.d) Treat product demand and product pricing separately.e) Increase product price when demand
List and briefly discuss four techniques used to control labor as part of aggregate planning in the service industry.
What is the rationale for (a) a phantom bill of material, (b) a planning bill of material, and (c) a pseudo bill of material?
What is a qualitative forecasting model, and when is its use appropriate?
Suppose you need to forecast the amount of relief aid needed following an earthquake. What type of forecast do you think is the most appropriate: qualitative or quantitative, and why?Is CPFR applicable in this case?
What type of forecasting method would you recommend to a start-up retailer in terms of quantities, number of products, etc.? Will you use the same method after say five years of operation? Explain.
How could an exponential smoothing model be made more responsive?
Summarize in the form of a table (a) the characteristics, (b)the strengths, and (c) the weakness for the following qualitative methods: (i) Jury of executive opinion, (ii) Delphi method, and (iii) Market survey.
Li & Fung is a global trading company with clients being major retailers such as Wal-Mart, Target and Disney World serving a network of 12,000 suppliers. Li & Fung is engaged in collaborative planning, relying on collaborative technology to forecast forthcoming trends. Being an intermediary between
The moving average forecasting method is typically best for products:a) Functionalb) Innovativec) Matured) New
Market research is a forecasting method:a) Naïve approachb) Jury of executive opinionc) Qualitatived) Quantitativee) Moving average
Developing joint forecasting with supply chain partners offers the following benefits:a) Reduce inventoryb) Increase salesc) Bring value to the customerd) Share riskse) All of the above
Explain sustainability.
Discuss the 3 R s.
For ISO 14000 list (a) its five core elements, (b) its advantages, and (c) its environmental and economic benefits.
The sustainability metric that measures the total greenhouse gas emissions caused directly or indirectly by an organization, a product, an event, or a person is known as:a) Life-cycle assessmentb) Ecological footprintc) Carbon footprintd) Food milee) Total cost of ownership
The ISO 14000 is a series of environmental management standards that contain the following core elements:a) environmental managementb) auditingc) performance evaluationd) labelinge) life cycle assessmentf) all of the above g) (a) – (d)
Can the X-bar chart be used in order to see if the number of defectives in a production timeslot is randomly distributed? Explain.
Why is a process termed “out of control” if it temporarily produces less defectives?
Even if the population distribution isn’t normal (eg. Beta or Uniform), can the distribution of sample means be normal?
What is a P-chart used for?
In the ideal world, we would like our processes to have a high process capability. Discuss.
What are the key factors which should be considered in designing the hospital layout?
Study the distribution of different sections and services across several floors inmulti-storeydepartment stores. Explain the rationale behindthe location of different departments/sections in thesetypes of stores.
How does Automatic Identificatoin work in a warehousing system?
Explain the concept of cross-docking.
How are product oriented layout organised?a) Product-oriented layouts are organized around products or families of low-volume, low-variety products.b) Product-oriented layouts are organized around products or families of similar high-volume, low-variety products.c) Product-oriented layouts are
Which statement is NOT correct?a) Cross-docking tries to avoid placing materials in the storage area.b) Cross-docking reduces product handlingc) Direct delivery of assembly parts to the assembly line is an example of cross-docking in manufacturing.d) Cross-docking increases facility costse)
A good office layout can inspire informal and productive encounters by balancing three social and physical factors as follows:a) ___________________________________b) ___________________________________c) ___________________________________
In a sandwich production factory, making each ham and cheese sandwich consists of a number of activities which totally take 7 minutes. The production line for ham and cheese sandwich has five workers who work 12 hours a day. What is the maximum number of ham and cheese sandwiches they can make in
How can labour specialisation reduce the labour cost of operations?
What are the main purposes of setting labour standards?
Identify to which category of “personal”, “fatigue”, or“delay” the following job elements belong toa) The hair-dresser takes the phone to confirm a booking, in the middle of a client haircut.b) The doctor takes a cup of coffee and a quick rest in a short time between visiting two
How do you classify the time for a machine operator who, between every job and sometimes in the middle of jobs, turns off the machine and goes for stock?
What factors dictate human resource strategy of a firm?a) Product and process strategiesb) Location and layout strategyc) Schedulesd) Individual differencese) All of the above
Time study mainly addresses:a) Timing all workers’ performances for setting standard timesb) Improving the working environment for setting standard timesc) Timing a sample of worker’s performance for setting standard timesd) Timely review of the workloads for setting standard timese) All of the
Methods techniques are used to analysea) Movement of individuals or materialb) Activity of human and machinec) Body movementd) Flow of activitiese) All of the above
A performance rating of 1.20 would indicate that the observed worker performs the task:a) At a normal paceb) At a standard timec) Slower that averaged) Faster than averagee) None of the above
Describe the type of problem that would lend itself to a solution using linear programming. LO.1
Formulate a linear programming model from a description of a problem. LO.1
Solve simple linear programming problems using the graphical method. LO.1
Interpret computer solutions of linear programming problems. LO.1
Do sensitivity analysis on the solution to a linear programming problem. LO.1
What is meant by the term feasible solution space? What determines this region?LO.1
Explain the term redundant constraint.LO.1
What is an isocost line? An isoprofit line?LO.1
What does sliding an objective function line toward the origin represent? Away from the origin?LO.1
Briefly explain these terms:a. Basic variableb. Shadow pricec. Range of feasibilityd. Range of optimality LO.1
Solve these problems using graphical linear programming and answer the questions that follow. Use simultaneous equations to determine the optimal values of the decision variables.a. Maximize Z = 4x1 + 3x2 Subject to Material 6 x 1  + 4 x 2≤48 lb L abor 4 x 1  + 8 x 2 ≤ 80 hr x 1 , x
Solve these problems using graphical linear programming and then answer the questions that follow.Use simultaneous equations to determine the optimal values of the decision variables.a. Minimize Z = 1.80S + 2.20T Subject to:Potassium 5S + 8T≥200 gr Carbohydrate 15S + 6T≥240 gr Protein
a. An appliance manufacturer produces two models of microwave ovens: H and W. Both models require fabrication and assembly work; each H uses four hours of fabrication and two hours of assembly, and each W uses two hours of fabrication and six hours of assembly. There are 600 fabrication hours
Solve each of these problems by computer and obtain the optimal values of the decision variables and the objective function.a. Maximize Z = 4x1 + 2x2 + 5x3 Subject to:1 x 1  + 2 x 2  + 1 x 3≤25 1 x 1  + 4 x 2  + 2 x 3 ≤ 40 3 x 1  + 3 x 2  + 1 x 3 ≤ 30 x 1 , x 2 , x
A small firm makes three similar products, which all follow the same three-step process, consisting of milling, inspection, and drilling. Product A requires 12 minutes of milling, 5 minutes for inspection, and 10 minutes of drilling per unit; product B requires 10 minutes of milling, 4 minutes for
Given this linear programming model, solve the model and then answer the questions that follow.Maximize Z = 12x1 + 18x2 + 15x3 where x1 = the quantity of product 1 to make, etc.Subject to:Machine 5 x 1  + 4 x 2  + 3 x 3≤160 minutes Labor 4 x 1  + 10 x 2  + 4 x 3≤288 hours
How would you formulate the constraint for material A if it was determined that there is a 5 percent waste factor for material A and equal quantities of each product are required?LO.1
Should there be additional overtime? If so, how much?LO.1
Should additional wood be purchased? If so, how much?LO.1
What imbalance does the existence of a waiting line reveal? LO.1
What causes waiting lines to form, and why is it impossible to eliminate them completely? LO.1
What metrics are used to help managers analyze waiting lines? LO.1
What very important lesson does the constant service time model provide for managers? LO.1
What are some psychological approaches to managing waiting lines, and why might a manager want to use them? LO.1
How will cashier-less technology affect the costs associated with waiting? LO.1
How does cashier-less technology affect the shopping experience? LO.1
In what kinds of situations is queuing analysis most appropriate? LO.1
Why do waiting lines form even though a service system is underloaded? LO.1
What are the most common measures of system performance in a queuing analysis? LO.1
What effect would decreasing arrival and service variability have on the effective capacity of a system? LO.1
Contrast finite and infinite population sources. LO.1
Under what circumstances would a multiple-priority waiting system be appropriate? LO.1
In a multiple-channel system, what is the rationale for having customers wait in a single line, as is now being done in many banks and post offices, rather than multiple lines? (Hint: The average waiting time is unaffected.) LO.1
What happens to the length of a waiting line in a highly variable (queuing) setting if a manager attempts to achieve a high percentage of capacity utilization? LO.1
What general trade-offs are involved in waiting line decisions? LO.1
Who needs to be involved in assessing the cost of customers waiting for service if the customers are(a) the general public and (b) employees of the organization? LO.1
How has technology had an impact on analyzing waiting line systems? How has technology improved waiting line performance? LO.1
What benefits do psychological approaches to waiting lines have over other approaches? LO.1
Describe two examples of unethical behavior related to waiting line management, and state which ethical principles they violate. LO.1
A vending machine dispenses hot chocolate or coffee. Service time is 30 seconds per cup and is constant. Customers arrive at a mean rate of 80 per hour, and this rate is Poisson-distributed. Determine the following:a. The average number of customers waiting in lineb. The average time customers
Many of a bank’s customers use its automatic teller machine to transact business after normal banking hours. During the early evening hours in the summer months, customers arrive at a certain location at the rate of one every other minute. This can be modeled using a Poisson distribution. Each
One field representative services five customers for a computer manufacturer. Customers request assistance at an average (Poisson-distributed) rate of once every four working days. The field representative can handle an average (Poisson-distributed) of one call per day. Determine the following:a.

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