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operations management
Questions and Answers of
Operations Management
A local electronics company has several production facilities scattered throughout the midwestern United States. The company is looking to establish a distribution center to ship its products to Best
A publisher is planning to add another distribution center to its operations in India. The coordinates of the cities where its books are to be shipped and the shipping loads for each are shown in the
A grocery chain is planning to construct a state-of-the art distribution facility to serve its seven store locations in the greater Chicago land area. As fresh meat and produce are transported to
An army division in eastern Afghanistan has six troop encampments in the Hindu Kush Mountain ranges. The army division commander wants to use the center-of-gravity method to determine the best
The fictional Crown Shoes Inc. imports dress shoes and sneakers from several manufacturers in India. Container shipments of these items arrive from India at the following three ports in the United
Refer to the following grid map that shows seven stores (labeled as demand locations D1 to D7) for a retail chain. The company is planning to locate a distribution center to distribute efficiently
Miles Diller, the owner of the athletic club The Muscle Toner, is planning to expand the size of the club to meet the growth in demand he anticipates. His options for expanding the facility are to do
Refer to Problem 24. The Sunshine Health Club hired an economist to estimate for each service feature the probabilities of occurrence for the three different states of nature (demand). These
Given the following Muther’s grid, design a revised layout:
Refer to problem 15. Which action would result in the greatest increase in process capacity:(a) Increase milling operation capacity by 10%;(b) Increase grinding operation capacity by 20%;(c) Increase
A logistics company supplies electronic parts to various retail stores daily. The company uses late deliveries as a metric to track its supply chain performance. Any order that is not delivered on
The Illinois Department of Transportation has the following set of data on age of drivers and accident rates. Draw a scatter diagram for this data to determine the apparent relationship (if any)
An industrial robotic system can operate an average of 12 weeks for optimum performance and needs maintenance service to prevent system failure. The robotic system operates five days a week. If
1. Consider the pressures for small versus large inventories. Which situation does Crayola seem to fit, and why?2. Explain how both independent and dependent demand items are present at Crayola.3.
Consider Managerial Practice 10.1 and the scheduling of Major League Baseball umpires. Relate the three levels in Figure 10.2 to the seasonal production of baseball games.
The manager of Stetson and Stetson Company is trying to develop a time standard for the powder filling and packing operation. This operation has five work elements, each of which is performed once
The manager of the customer service department of Data Tech Credit Card Service Company is concernedabout the number of defects produced by the billingprocess. Every day a random sample of 250
Identify a service or a manufacturing process that you are familiar with, and draw a current state value stream map to depict its existing information and material flows.
In a two-bin inventory system, the demand for 3-inch lag bolts during the 2-week lead time is normally distributed, with an average of 53 units perweek. The standard deviation of weekly demand is 5
1. What types of decisions must Chad Thomas make daily for his company’s operations to run effectively? Over the long run?2. How did sales and marketing affect operations when they began to sell
Consider this sign seen in a local restaurant: “To-go orders do NOT include complimentary chips and salsa. If you have any questions, see our management, NOT our employees.” What impact does this
Identify an industry in which expansionist strategy has generally been followed by most firms in the past. Under which conditions will it be better for a firm to follow the wait-and-see strategy
1. Why is a visual management approach such an integral part of Autoliv’s lean system?2. Describe the JIT considerations presented in the chapter as they relate to Autoliv’s manufacturing
1. Assess the four categories of a risk-management plan for the choice EDGE project. Given the information in the case, how risky is this project for Choice Hotels?2. Go online to research
Bradley’s Copiers sells and repairs photocopy machines.The manager needs weekly forecasts of service calls sothat he can schedule service personnel. Use the actualdemand in the first period for the
1. How much does the forecasting process at Deckers correspond with the “typical forecasting process” described at the end of this chapter?2. Based on what you see in the video, what kinds of
In a P system, the lead time for a box of weed-killer is 2 weeks and the review period is 1 week. Demand during the protection interval averages 218 boxes, with a standard deviation of 40 boxes.a.
1. Describe the text’s four external and internal pressures on supply chain design as they relate to Crayola’s supply chains for ColorWonder® and the Washable Deluxe Painting Kit®.2. Review the
1. Consider the dominant factors for manufacturing as described in the text. Briefly describe how each one may have influenced Continental’s decision to locate its new plant in Sumter, South
The inclusion of a disruptive technology in a firm’s supply chain puts pressure on supply chain integration and has implications for how the four core processes are managed. Explain how additive
1. Should Starwood maintain a cooperative orientation or a competitive orientation with its suppliers for the kind of items described here?2. What types of information should Starwood exchange with
1. In what ways does Clif Bar have a sustainable supply chain?2. Regarding financial responsibility, what business risks does Clif Bar & Company face with so many parts of its supply chain
For AQL = 1 percent, LTPD = 4 percent, and n = 400, what value(s) of the acceptance number, c, would result in the producer’s risk and the consumer’s risk both being under 5 percent?
For AQL = 1 percent and c = 2, what is the largest value of n that will result in a producer’s risk of 5 percent? Using that sample size, determine the consumer’s risk when LTPD = 2 percent.
For c = 10 and LTPD = 5 percent, what value of n results in a 5 percent consumer’s risk?
Design a sampling plan for AQL = 0.1 percent, LTPD = 0.5 percent, producer’s risk ≤ 5 percent, and consumer’s risk ≤10 percent.
Design a sampling plan for AQL = 0.01 percent (100 parts per million), LTPD = 0.05 percent (500 ppm), producer’s risk ≤ 5 percent, and consumer’s risk ≤ 10 percent. Observe the similarity of
Suppose that AQL = 0.5 percent, a = 5 percent, LTPD = 2 percent, and N = 1, 000.a. Find the AOQL for the single-sampling plan that best fits the given parameter values.b. For each of the following
Peter Lamb is the quality assurance manager at an engine plant. The summer intern assigned to Lamb is a student in operations management at a local university. The intern’s first task is to
During a time study in a machine shop, five observations of a milling operation performed by an operator whose rating factor is 95 percent yielded the following times (in minutes): 40, 48, 48, 46,
Alyssa’s Custom Cakes currently sells 5 birthday, 2 wedding,and 3 specialty cakes each month for $50, $150,and $100 each, respectively. The cost of labor is $50 perhour including benefits. It takes
For the data in problem 11, using the seasonal indices developed for that problem and using the simple average method, do the following:1. Deseasonalize the admissions data.2. Develop a linear trend
Refer to Problem 13. In the previous decision situation, the owner, Sanjay Kumar, decided to build a small facility. After operating the facility for a year, Sanjay realized that the market growth
Refer to Problem 12. Ozgun Demirag of Feminine Fashions is reluctant to assign probabilities to the different states of nature (market conditions). She asks for your help in determining which
A firm has a training program for assembling computers. The firm closely monitors the progress of the trainees, and those who cannot meet the standard of a assembling a computer in the 5th repetition
The clerical employees of an insurance company process claims and the process has an 84% learning rate. The learning in this process reaches a steady state (i.e., no additional learning takes place)
A contractor for the Department of Defense (DoD) is manufacturing a component for the hydraulic systems of jet fighter planes. The direct labor time estimate for the production of the first unit of
The daily usage rate of wheel bearings at a machine shop is normally distributed with a mean of 200 per day and a standard deviation of 15 per day. The lead time fluctuates in a normally distributed
A health food store buys 14-ounce bags of quinoa from a Mexican supplier. The store’s daily demand for quinoa is normally distributed with a mean of 30 bags per day and a standard deviation of 4
Ventura Lumber Mill (not a real company) in Salvador, Brazil, processes 9,000 logs annually and operates 300 days during a year. Ventura’s supplier delivers orders to the lumber mill at the rate of
Cannes Croissants (not a real company) wishes to determine the optimum production quantity for its top-selling product, almond croissants. The annual demand for almond croissants is 12,000 units. The
Amco International is a fictional importer of handcrafted leather and reptile skin handbags from India. The Indian company that sells these handbags will ship these handbags only in order sizes of
Auto Mart is a mythical seller of a variety of automobile parts and accessories. Auto Mart’s owner, Jonathan Trott, wishes to determine the optimum order quantity for one of the store’s popular
Supermarkets carry a wide range of inventory items that makes managing inventory difficult. The manager of a supermarket in your neighborhood is your friend and seeks your help in calculating
Refer to problem 5: Hick’s company’s inventory valuation was inaccurate. If the company’s correct beginning inventory balance is $2,925,000 and its ending inventory was $4,110,000 (again in
Hick’s Furniture Company (not a real company) sells industrial furniture for office buildings. During the current year, the company reported cost of goods sold on its income statement of
Refer to problem 3: What is Reliance Inc. days of inventory in stock if in 2013 the company’s beginning inventory balance was $30.25 billion, its ending inventory balance was $29.12 billion, and
The financial statements of mythical Reliance Inc. show that in 2012 its beginning inventory balance was $31.82 billion and ending inventory balance was $30.25 billion. The company’s cost of goods
The same definition of value stream holds true for the office just as it does for the automobile factory, although in an office, it is much harder to see. The easiest value streams to see in an
A U.S. Postal Service office is planning to adopt a pull system. With the current push system, a machine cancels the stamped letters, which are loaded into tubs with 400 letters in each tub. The tubs
Megatech Inc. is a fictional producer of airwave scanners for the defense industry. The company is planning to implement a Kanban control system to eliminate waste in the form of unnecessary
A local automotive company delivers five transmissions to the fabrication line every hour. On average, five vehicles are produced every hour and management has decided on a safety stock that equals
Given the following information, determine the number of Kanban cards required:Demand rate = 800 units per hourLead time = 30 hoursContainer capacity = 1,200 unitsSafety stock = 15%
What is the takt time for a production system that operates one shift given the following information:Total time per shift = 480 minutesCoffee breaks = two 20-minute breaks per shiftLunch break = 1
Sprinkman Inc., a fictional supplier of instrument gauge cluster housings, is planning to use a Kanban control system to control material flow. The first step in this process is to calculate the takt
Give an example for each of the four categories of purchases presented in Figure 10.3 for a company like Apple. What sourcing strategy would you use for each of these purchases?
Suppose you have been hired to improve a hospital layout. Choose any nine departments of the hospital, and develop a Muther’s grid for them. Explain your preferences for rating the relationships
Refer to Solved Problem 9S.3. Suppose production requirements dictate that the cycle time be reduced from 12 to 11 minutes. Using the data given in the table in Solved Problem 9S.2, rebalance the
An assembly line with 16 tasks needs to be balanced. The line operates 7 hours a day, and the desired daily output rate is 70 units. The total time for all the 16 tasks is 38 minutes:1. What is the
Prepare a service blueprint for a local hair salon.
Create a process chart for course registration at your university.
Create a process chart for orange-juice processing.
Create an assembly chart for putting together a McDonald’s Big Mac.
RanBaxy Pharmaceuticals Inc. (subsidiary of SUN PHARMA Company, Princeton, NJ) is currently manufacturing a drug that has a variable cost and selling price of $1.20 per unit $2.00 respectively (in
The effective capacity of the loan processing department of the fictional Union City Bank is only 60% of design capacity, and the actual output is 85% of effective capacity. If the bank desires an
The design capacity at the fictitious Quick Lube service bay is 8 cars per hour. If the effective capacity and efficiency of a Quick Lube service bay are 6 cars per hour and 0.78, respectively, how
The Sam & Irene Black School of Business at Penn State Erie, The Behrend College, has the facilities and faculty to accommodate an enrollment of 1,500 new students per academic year. Yet, to maintain
A company that manufactures soft drinks wants to assess the capacity performance of its production line. The system has a design capacity of 100,000 bottles per 8-hour shift. Due to maintenance
A company that manufactures hydraulic pumps buys valves from a supplier in China. The Chinese supplier has submitted the company with a new valve and claims that it will improve the efficiency of the
The mythical Prime Meridian Hotel has been receiving an unusually large number of complaints from customers staying overnight in the hotel in the past month. Prepare a cause-and effect diagram for
Prepare a process flowchart for actions to be taken in an academic dishonest process. Your process flowchart should include the following items: cheating/plagiarism is suspected; the professor
Construct a house of quality matrix for Southwest Airlines.
Construct a simple house of quality matrix for a table lamp. Begin by identifying (in your opinion) what attributes customers would want in a table lamp. Then complete the house of quality matrix to
Construct a house of quality for a pair of expensive designer sunglasses. Make sure to identify some features that you think someone interested in buying such sunglasses would expect. Then complete
Pick a new product and use the Stage-Gate® system to outline how you would integrate sustainability into the product’s development.
stationery. The job shop hires 10 workers, and each worker is paid US$15 per hour. During the third week of July, the 10 workers together produced 150 units of printed stationery. Each worker during
Why is a "Black Swan crisis" technically impossible?
If an event is unforeseeable, how can a good contingency plan help?
In disaster planning, which is more important, mitigation or response? Why?
How do robustness and redundancy relate to biomimicry, the copying of design principles from natural systems?
How does Voltaire's quote, "the perfect is the enemy of the good," relate to the well- known problem, "paralysis of analysis"?
If an organization deliberately tolerates a possibility of loss, is this possibility a stra- tegic or an external risk?
Consider three organizations, one operating during an emergency, one during a cri- sis, and one during a disaster. By definition of the three terms, which organization has the best potential to stop
If a company considers 10 different future states of nature to be equally likely, and each of the 10 has a different value, how can that company calculate the expected value?
Is disruptive innovation more likely to create an emergency or a crisis?
A manager assumes an unlikely request in an order must be the result of some unusual customer. Is this an example of outcome bias or normalization?
Someone complains about a supplier who makes mistakes and a manager shrugs and says, "At least they're consistent." Did the manager just comment on the reli- ability or the robustness of the
Does increasing system complexity without increasing redundancy then increase or decrease system reliability?
Does increasing redundancy increase or decrease reliability?
Does increasing redundancy increase or decrease overall utilization of the system?
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