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Operations Management Sustainability And Supply Chain Management Global Edition 12th Edition Jay Heizer, Barry Render, Chuck Munson - Solutions

Hyundai Motors is considering three sites—A, B, and C—at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimumcost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered
Peter Billington Stereo, Inc., supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas are lower due to cheaper land costs, but the variable costs in Dallas are higher because shipping
The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown:a) Over what range of production is each location optimal?b) For a production of 200 units, which site is best? PX
A British hospital chain wishes to make its first entry into the U.S. market by building a medical facility in the Midwest, a region with which its director, Doug Moodie, is comfortable because he got his medical degree at Northwestern University.After a preliminary analysis, four cities are chosen
An American consulting firm is planning to expand globally by opening a new office in one of four countries:Germany, Italy, Spain, or Greece. The chief partner entrusted with the decision, L. Wayne Shell, has identified eight key success factors that he views as essential for the success of any
Daniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location for this factory has been narrowed to four sites: A, B, C, or D. The following table shows the results thus far obtained by Tracy by using the factor-rating method to analyze the problem.
Harden College is contemplating opening a European campus where students from the main campus could go to take courses for 1 of the 4 college years. At the moment, it is considering five countries: The Netherlands, Great Britain, Italy, Belgium, and Greece. The college wishes to consider eight
A company is planning on expanding and building a new plant in one of three Southeast Asian countries. Chris Ellis, the manager charged with making the decision, has determined that five key success factors can be used to evaluate the prospective countries. Ellis used a rating system of 1 (least
Pan American Refineries, headquartered in Houston, must decide among three sites for the construction of a new oilprocessing center. The firm has selected the six factors listed below as a basis for evaluation and has assigned rating weights from 1 to 5 on each factor:a) Which site will be
A location analysis for Cook Controls, a small manufacturer of parts for high-technology cable systems, has been narrowed down to four locations. Cook will need to train assemblers, testers, and robotics maintainers in local training centers. Lori Cook, the president, has asked each potential site
Marilyn Helm Retailers is attempting to decide on a location for a new retail outlet. At the moment, the firm has three alternatives—stay where it is but enlarge the facility; locate along the main street in nearby Newbury; or locate in a new shopping mall in Hyde Park. The company has selected
The Brazilian fast growing economy has been largely dependent on its freight transport capacity. A recent study has categorised the country’s containership sea port terminals into three distinct groups based on the competitiveness criteria (listed in the table below),and their scores against the
Ken Gilbert owns the Knoxville Warriors, a minor league baseball team in Tennessee. He wishes to move the Warriors south, to either Mobile (Alabama) or Jackson(Mississippi). The table below gives the factors that Gilbert thinks are important, their weights, and the scores for Mobile and Jackson.a)
Subway, with more than 25,000 outlets in the U.S., is planning for a new restaurant in Buffalo, New York. Three locations are being considered. The following table gives the factors for each site.a) At which site should Subway open the new restaurant?b) If the weights for Space and Traffic density
Refer to Problem 8.3. If the final destination is New Delhi, India, and there is a 30% import tax, which firm should you choose?
You have been asked to analyze the bids for 200 polished disks used in solar panels. These bids have been submitted by three suppliers: Thailand Polishing, India Shine, and Sacramento Glow. Thailand Polishing has submitted a bid of 2,000 baht. India Shine has submitted a bid of 2,000
Refer to Problem 8.1. Shipping cost from Myanmar to Denver, Colorado, the final destination, is $1.50 per unit.Shipping cost from China to Denver is $1 per unit, while the shipping cost from Billings to Denver is $.25 per unit. Considering both labor and transportation costs, which is the most
In Myanmar (formerly Burma), 6 laborers, each making the equivalent of $3 per day, can produce 40 units per day. In rural China, 10 laborers, each making the equivalent of $2 per day, can produce 45 units. In Billings, Montana, 2 laborers, each making $60 per day, can make 100 units. Based on labor
Asda, a leading supermarket in the UK, is taking its click-and-collect service (where customers can order online and collect their items from the collection points) to train stations across London for the first time as part of a wider charge to expand its collection service to areas not currently
Contrast the location of a food distributor and a supermarket. (The distributor sends truckloads of food, meat, produce, etc., to the supermarket.) Show the relevant considerations (factors) they share;show those where they differ.
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?
Why shouldn’t low wage rates alone be sufficient to select a location?
“Manufacturers locate near their resources, retailers locate near their customers.” Discuss this statement, with reference to the proximityto-markets arguments covered in the text. Can you think of a counter-example in each case? Support your choices.
What are the three steps to locational cost–volume analysis?
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?
List factors, other than globalization, that affect the location decision.
Although most organizations may make the location decision infrequently, there are some organizations that make the decision quite regularly and often. Provide one or two examples. How might their approach to the location decision differ from the norm?
What factors affect region/community location decisions?
What are the major factors that firms consider when choosing a country in which to locate?
Quickly review the location of shops and services in your local shopping centre. Can you find examples of clustering in the retail sector?
What are the advantages and disadvantages of a qualitative (as opposed to a quantitative) approach to location decision making?
How does factor weighting incorporate personal preference in location choices?
What is clustering?
Jaguar Land Rover has opened its first plant in China in 2014.Discuss the main reason for this decision.
Why have many manufacturing facilities relocated from Western Europe to Asia? Discuss the motives and risks.
How is FedEx’s location a competitive advantage? Discuss.
Net present value:a) is greater if cash receipts occur later rather than earlier.b) is greater if cash receipts occur earlier rather than later.c) is revenue minus fixed cost.d) is preferred over break-even analysis.e) is greater if $100 monthly payments are received in a lump sum ($1,200) at the
Expected monetary value is most appropriate:a) when the payoffs are equal.b) when the probability of each decision alternative is known.c) when probabilities are the same.d) when both revenue and cost are known.e) when probabilities of each state of nature are known.
The break-even point is:a) adding processes to meet the point of changing product demands.b) improving processes to increase throughput.c) the point in dollars or units at which cost equals revenue.d) adding or removing capacity to meet demand.e) the total cost of a process alternative.
System capacity is based on:a) the bottleneck.b) throughput time.c) time of the fastest station.d) throughput time plus waiting time.e) none of the above.
Effective capacity is:a) the capacity a firm expects to achieve, given the current operating constraints.b) the percentage of design capacity actually achieved.c) the percentage of capacity actually achieved.d) actual output.e) efficiency.
Capacity decisions should be made on the basis of:a) building sustained competitive advantage.b) good financial returns.c) a coordinated plan.d) integration into the company’s strategy.e) all of the above.
Use regression analysis to forecast the point at which Swanson needs to “build out” the top two floors of the new building, namely, when demand will exceed 16,000 births
What kind of major changes could take place in Arnold Palmer Hospital’s demand forecast that would leave the hospital with an underutilized facility (namely, what are the risks connected with this capacity decision)?
Given the capacity planning discussion in the text (see Figure S7.6 ), what approach is being taken by Arnold Palmer Hospital toward matching capacity to demand?
Bold’s Gym, a health club chain, is considering expanding into a new location: the initial investment would be $1 million in equipment, renovation, and a 6-year lease, and its annual upkeep and expenses would be $75,000 (paid at the beginning of the year). Its planning horizon is 6 years out, and
Your boss has told you to evaluate two ovens for Tink-the-Tinkers, a gourmet sandwich shop. After some questioning of vendors and receipt of specifications, you are assured that the ovens have the attributes and costs shown in the following table. The following two assumptions are appropriate:
Tim Smunt has been asked to evaluate two machines.After some investigation, he determines that they have the costs shown in the following table. He is told to assume that: 1.The life of each machine is 3 years. 2.The company thinks it knows how to make 12% on investments no more risky than this
What is the present value of $5,600 when the interest rate is 8% and the return of $5,600 will not be received for 15 years?
The initial cost of an investment is $65,000 and the cost of capital is 10%. The return is $16,000 per year for 8 years.What is the net present value?
What is the net present value of an investment that costs $75,000 and has a salvage value of $45,000? The annual profit from the investment is $15,000 each year for 5 years. The cost of capital at this risk level is 12%
As operations manager of Holz Furniture, you must make a decision about adding a line of rustic furniture. In discussing the possibilities with your sales manager, Steve Gilbert, you decide that there will definitely be a market and that your firm should enter that market. However, because rustic
James Lawson’s Bed and Breakfast, in a small historic Mississippi town, must decide how to subdivide (remodel)the large old home that will become its inn. There are three alternatives: Option A would modernize all baths and combine rooms, leaving the inn with four suites, each suitable for two to
As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves.The following table provides the information you have been able to put together thus far:Last year’s manager, Jim Freeland, has advised you to be sure to add 10% of variable cost as a waste
As a prospective owner of a club known as the Red Rose, you are interested in determining the volume of sales dollars necessary for the coming year to reach the break-even point. You have decided to break down the sales for the club into four categories, the first category being beer. Your estimate
Zan Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processing experience, and Angela has extensive commercial food preparation experience. The process will consist of opening crates of
The electronics firm in Problem S7.23 is now considering the new equipment and increasing the selling price to$1.10 per unit. With the higher-quality product, the new volume is expected to be 45,000 units. Under these circumstances, should the company purchase the new equipment and increase the
An electronics firm is currently manufacturing an item that has a variable cost of $.50 per unit and a selling price of $1.00 per unit. Fixed costs are $14,000. Current volume is 30,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional
You are considering opening a copy service in the student union. You estimate your fixed cost at $15,000 and the variable cost of each copy sold at $.01. You expect the selling price to average $.05.a) What is the break-even point in dollars?b) What is the break-even point in units?
Given the following data, calculatea) BEP x ;b) BEP $ ;andc) the profit at 100,000 units:P = +8>unit V = +4>unit F = +50,000
Janelle Heinke, the owner of Ha’Peppas!, is considering a new oven in which to bake the firm’s signature dish, vegetarian pizza. Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $2.00 per pizza. Oven B is larger and can
Given the data in Problem S7.17, at what volume(units) of output would the two alternatives yield the same profit? PX
Using the data in Problem S7.17:a) What is the break-even point in dollars for proposal A if you add $10,000 installation to the fixed cost?b) What is the break-even point in dollars for proposal B if you add $10,000 installation to the fixed cost? PX
Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenue
Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its fixed cost to be $500.00 and its variable cost to be $0.50 per unit. Selling price is expected to average $0.75 per unit.a) What is Smithson’s break-even point in units?b) What is the break-even
A production process at Kenneth Day Manufacturing is shown in Figure S7.9 . The drilling operation occurs separately from, and simultaneously with, sawing and sanding, which are independent and sequential operations. A product needs to go through only one of the three assembly operations (the
Klassen Toy Company, Inc., assembles two parts( parts 1 and 2 ): Part 1 is first processed at workstation A for 15 minutes per unit and then processed at workstation B for 10 minutes per unit. Part 2 is simultaneously processed at workstation C for 20 minutes per unit. Work stations B and C feed
The Pullman Mfg., Inc., three-station work cell illustrated in Figure S7.8 has two machines at station 1 in parallel.(The product needs to go through only one of the two machines before proceeding to station 2.) The manager, Ms. Hartley, has asked you to evaluate the system if she adds a parallel
The three-station work cell at Pullman Mfg., Inc.is illustrated in Figure S7.8 . It has two machines at station 1 in parallel (i.e., the product needs to go through only one of the two machines before proceeding to station 2).
The three-station work cell illustrated in Figure S7.7 has a product that must go through one of the two machines at station 1 (they are parallel) before proceeding to station 2.
A work cell at Chris Ellis Commercial Laundry has a workstation with two machines, and each unit produced at the station needs to be processed by both of the machines. (The same unit cannot be worked on by both machines simultaneously.)Each machine has a production capacity of 4 units per hour.What
A production line at V. J. Sugumaran’s machine shop has three stations. The first station can process a unit in 10 minutes. The second station has two identical machines, each of which can process a unit in 12 minutes. (Each unit only needs to be processed on one of the two machines.) The third
Under ideal conditions, a service bay at a Fast Lube can serve 6 cars per hour. The effective capacity and efficiency of a Fast Lube service bay are known to be 5.5 and 0.880, respectively.What is the minimum number of service bays Fast Lube needs to achieve an anticipated servicing of 200 cars per
Southeastern Oklahoma State University’s business program has the facilities and faculty to handle an enrollment of 2,000 new students per semester. However, in an effort to limit class sizes to a “reasonable” level (under 200, generally), Southeastern’s dean, Holly Lutze, placed a ceiling
The effective capacity and efficiency for the next quarter at MMU Mfg. in Waco, Texas, for each of three depart Compute the expected production for next quarter for each department.
Material delays have routinely limited production of household sinks to 400 units per day. If the plant efficiency is 80%, what is the effective capacity?
A plant has an effective capacity of 900 units per day and produces 800 units per day with its product mix; what is its efficiency?
If a plant has an effective capacity of 6,500 and an efficiency of 88%, what is the actual (planned) output?
For the past month, the plant in Problem S7.1, which has an effective capacity of 6,500, has made only 4,500 hammers per day because of material delay, employee absences, and other problems. What is its efficiency?
Amy Xia’s plant was designed to produce 7,000 hammers per day but is limited to making 6,000 hammers per day because of the time needed to change equipment between styles of hammers. What is the utilization?
What are the techniques available to operations managers to deal with a bottleneck operation? Which of these does not decrease throughput time?
Describe the five-step process that serves as the basis of the theory of constraints.
Explain how net present value is an appropriate tool for comparing investments.
Under what conditions would a firm want its capacity to lag demand? to lead demand?
What keeps plotted revenue data from falling on a straight line in a break-even analysis?
What are the assumptions of break-even analysis?
What is the theory of constraints?
Distinguish between bottleneck time and throughput time.
Explain why doubling the capacity of a bottleneck may not double the system capacity.
Distinguish between effective capacity and actual output.
What is efficiency?
What is effective capacity?
Distinguish between design capacity and effective capacity.
Computer-integrated manufacturing (CIM) includes manufacturing systems that have:a) computer-aided design, direct numerical control machines, and material-handling equipment controlled by automation.b) transaction processing, a management information system, and decision support systems.c)
Customer feedback in process design is lower as:a) the degree of customization is increased.b) the degree of labor is increased.c) the degree of customization is lowered.d) both a and b.e) both b and c.
Tools for process analysis include all of the following except:a) flowchart.b) vision systems.c) service blueprinting.d) time-function mapping.e) value-stream mapping.
A crossover chart for process selection focuses on:a) labor costs.b) material cost.c) both labor and material costs.d) fixed and variable costs.e) fixed costs.
Low-volume, high-variety processes are also known as:a) continuous processes.b) process focused.c) repetitive processes.d) product focused.
Describe in detail a process that the hospital could analyze, besides the ones mentioned in this case.
If all mothers were electronically (or manually) preregistered, how would the flowchart change? Redraw the chart to show your changes.

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