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business
operations management 6th
Questions and Answers of
Operations Management 6th
Define shadow price (or dual value). lop4
Why is it not advisable to round optimal solutions to nearest integer? lop4
The Chris Beehner Company manufactures two lines of designer yard gates, called model A and model B. Every gate requires blending a certain amount of steel and zinc; the company has available a total
Solve the following linear program graphically: lop4 Minimize cost = X1 + X2 Subject to: 8X1 + 16X2 Ú 64 X1 Ú 0 X2 Ú 92(Note: X2 values can be negative in this problem.)
Develop an initial solution to a transportation model with the northwest-corner and intuitive lowest-cost methods 767
Solve a problem with the stepping-stone method 770
Balance a transportation problem 773
Deal with a problem that has degeneracy 773
What are the three information needs of the transportation model? ki7
What are the steps in the intuitive lowest-cost method? ki7
Identify the three “steps” in the northwest-corner rule. ki7
How do you know when an optimal solution has been reached? ki7
Which starting technique generally gives a better initial solution, and why? ki7
The more sources and destinations there are for a transportation problem, the smaller the percentage of all cells that will be used in the optimal solution. Explain. ki7
Develop a northeast-corner rule and explain how it would work. Set up an initial solution for the Arizona Plumbing problem analyzed in Example C1. ki7
What is meant by an unbalanced transportation problem, and how would you balance it? ki7
How many occupied cells must all solutions use? ki7
Explain the significance of a negative improvement index in a transportation-minimizing problem. ki7
How can the transportation method address production costs in addition to transportation costs? ki7
Explain what is meant by the term degeneracy within the context of transportation modeling. ki7
Find an initial solution to the following transportation problem. ki7 TO FROM LOS ANGELES CALGARY PANAMA CITY SUPPLY Mexico City $ 6 $18 $ 8 100 Detroit $17 $13 $19 60 Ottawa $20 $10 $24 40 Demand 50
Consider the transportation table at right. Unit costs for each shipping route are in dollars. What is the total cost of the basic feasible solution that the intuitive lowest-cost method would find
Consider the transportation table below. The solution displayed was obtained by performing some iterations of the transportation method on this problem. What is the current cost of the plan that
The following table is the result of one or more iterations.From To Demand AB C1 2 3 40 Capacity 50 30 75 60 55 155 10 20 30 10 30 30 45 40 10 30 10 10 25 5a) Complete the next iteration using the
A commercial bakery in Dubai has three production lines that supply baked goods to four stores. The cost of shipment from each production line to each store (in AED per 1,000 pieces)is shown in the
The Donna Mosier Clothing Group owns factories in three towns (W, Y, and Z), which distribute to three retail dress shops in three other cities (A, B, and C). The following table summarizes factory
An equipment manufacturer wants to decide on the location of a new facility. Currently, the company has a plant in Egypt and a plant in Turkey. The company is deciding where to build a new
Randa’s Bakery, Egypt, is considering adding a fourth plant to its three existing facilities in 6th of October, 10th of Ramadan, and Obour. Both Giza and Mokatam are being considered. Evaluating
Using the data from Problem C.10 and the unit production costs listed in the following table, show which locations yield the lowest cost. ki7 LOCATION PRODUCTION COST(E£/UNIT)6th of October E£2.9
A juice manufacturer produces juice at plants in Cairo, Alexandria, and Aswan. These are sent to regional distributors in Giza, Tanta, and Sohag. The shipping costs vary, and the company would like
For the following Gregory Bier Corp. data, find the starting solution and initial cost using the northwest-corner method. What must you do to balance this problem? ki7 TO FROM W X Y Z SUPPLY A $132
The following table presents cost, capacity, and demand data for a transportation problem in Jinfeng Yue’s furniture company. Set up the appropriate transportation table and find the initial
With the transportation technique, the initial solution can be generated in any fashion one chooses. The only restriction(s)is that:a) the solution be optimal.b) one use the northwest-corner
The purpose of the stepping-stone method is to:a) develop the initial solution to a transportation problem.b) identify the relevant costs in a transportation problem.c) determine whether a given
The purpose of a dummy source or a dummy destination in a transportation problem is to:a) provide a means of representing a dummy problem.b) obtain a balance between total supply and total demand.c)
If a solution to a transportation problem is degenerate, then:a) it will be impossible to evaluate all empty cells without removing the degeneracy.b) a dummy row or column must be added.c) there will
How much would reliability improve if the medical control system shown in Problem 17.9 changed to the redundant parallel system shown in Problem 17.10? L01
Elizabeth Irwin’s design team has proposed the following system with component reliabilities as indicated:What is the reliability of the system?Hint: The system functions if either R2 or R3 work.
As VP for operations at Méndez-Piñero Engineering, you must decide which product design, A or B, has the higher reliability. B is designed with backup units for components R3 and R4.What is the
Explain the relationship among short-term scheduling, capacity planning, aggregate planning, and a master schedule 639
Draw Gantt loading and scheduling charts 643
Name and describe each of the priority sequencing rules 649
Use Johnson’s rule 652
An Alabama lumberyard has four jobs on order, as shown in the following table. Today is day 205 on the yard’s schedule.JOB DUE DATE REMAINING TIME (DAYS)A 212 6 B 209 3 C 208 3 D 210 8 In what
Yu Amy Xia has developed a specialized airtight vacuum bag to extend the freshness of seafood shipped to restaurants. She has put together the following demand cost data:QUARTER FORECAST
Consider the following aggregate planning problem for one quarter:REGULAR TIME OVERTIME SUBCONTRACTING Production capacity/month 1,000 200 150 Production cost/unit $5 $7 $8 Assume that there is no
Revenue management requires management to deal with:a) multiple pricing structures.b) changes in demand.c) forecasts of use.d) forecasts of duration of use.e) all of the above. lop52
Describe causes of the bullwhip effect and their associated remedies. lop6
Sean Willems has evaluated the vendors in Table S11.3 as well as Fricker V-Tech, the vendor in Problem S11.13, but the Quality Control Manager says that new data suggest that Siemsen Systems,
The Smoked Salmon, a seafood supplier in Egypt, has a new yearly contract to supply fresh seafood products to Saudi Arabia. The value of the contract is E£800,000 (Egyptian Pound)and the estimated
The food items listed in the following table are stored on a cruise ship for a 7-day cruise.ITEM TRIPS PER VOYAGE AREA NEEDED (BLOCKS)A 2 1 B 160 8 C 16 1 D 40 4 E 24 2 F 15 1 G 4 1 Using the
Explain the strategic importance of the supply chain 477
Identify six sourcing strategies 479
Explain issues and opportunities in the supply chain 483
Describe the steps in supplier selection 485
Explain major issues in logistics management 488
Compute the percentage of assets committed to inventory and inventory turnover 492
Define supply chain management. lop5
What are the objectives of supply chain management? lop5
What is the objective of logistics management? lop5
How do we distinguish between the types of risk in the supply chain? lop5
What is vertical integration? Give examples of backward and forward integration. lop5
What are three basic approaches to negotiations? lop5
How does a traditional adversarial relationship with suppliers change when a firm makes a decision to move to a few suppliers? lop5
What is the difference between postponement and channel assembly? lop5
What is CPFR? lop5
What is the value of online auctions in e-commerce? lop5
Explain how FedEx uses the Internet to meet requirements for quick and accurate delivery. lop5
How does Walmart use drop shipping? lop5
What are blanket orders? How do they differ from invoiceless purchasing? lop5
What can purchasing do to implement just-in-time deliveries? lop5
What is e-procurement? lop5
How does Red Lobster, described in the Global Company Profile, find competitive advantage in its supply chain? lop5
What is SCOR, and what purpose does it serve? lop5
Choose a local establishment that is a member of a relatively large chain. From interviews with workers and information from the Internet, identify the elements of the supply chain.Determine whether
Kamal Fatehl, production manager of Kennesaw Manufacturing, finds his profit at $15,000 (as shown in the following statement)—inadequate for expanding his business. The bank is insisting on an
A company buys an item for €50 and sells it for €75.The annual sales and average stock of this item are 10,000 units and 1,600 units, respectively, while the carrying cost is 20% of its
An excerpt from Kalamia manufacturing company’s last year’s final annual report revealed the following information:CATEGORY PART NO.AVERAGE INVENTORY UNIT VALUE UNITS €Raw materials RSI - 1 200
A company has supplied the following data with respect to its three different types of fertilizers:ANNUAL DEMAND AVERAGE INVENTORY COST PER SACK FERTILIZER SACKS SACKS €10-10-10 30,000 5,000 18
The plant manager, Murat Kristal, at York Technologies makes Aircraft Navigation Systems. He expects you, as the new OM analyst, to provide some insight for performance of the plant. High on his list
Based on the data in Table 11.10 determine:a) How many weeks of finished goods were on hand at the end of last year.b) How many weeks of finished goods were on hand at the end of this year. lop5
What are the advantages of each of Darden’s four supply chains? lop5
What are the complications of having four supply chains? lop5
Where would you expect ownership/title to change in each of Darden’s four supply chains? lop5
How do Darden’s four supply chains compare with those of other firms, such as Dell or an automobile manufacturer? Why do the differences exist, and how are they addressed? lop5
What other techniques might Regal use to improve supply chain management? lop5
What kind of response might members of the supply chain expect from Regal because of their “partnering” in the supply chain? lop5
Why is supply chain management important to Regal? lop5
How does this supply chain differ from that in a manufacturing firm? lop5
What are the constraints on making decisions based on economics alone at Arnold Palmer Hospital? lop5
What role do doctors and nurses play in supply chain decisions in a hospital? How is this participation handled at Arnold Palmer Hospital? lop5
Doctor Smith just returned from the Annual Physician’s Orthopedic Conference, where she saw a new hip joint replacement demonstrated. She decides she wants to start using the replacement joint at
The objective of supply chain management is to _________. lop5
The term vertical integration means to:a) develop the ability to produce products that complement or supplement the original product.b) produce goods or services previously purchased.c) develop the
The bullwhip effect can be aggravated by:a) local optimization.b) sales incentives.c) quantity discounts.d) promotions.e) all of the above. lop5
Supplier selection requires:a) supplier evaluation and effective third-party logistics.b) supplier development and logistics.c) negotiations, supplier evaluation, supplier development, and
A major issue in logistics is:a) cost of purchases.b) supplier evaluation.c) product customization.d) cost of shipping alternatives.e) excellent e-procurement. lop5
Inventory turnover 5a) Cost of goods sold 4 Weeks of supplyb) Weeks of supply 4 Annual cost of goods soldc) Annual cost of goods sold 4 52 weeksd) Average inventory investment 4 Cost of goods solde)
The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Robert Klassan’s print shop: L01 DEMAND LOW HIGH Alternative 1 $10,000
Zhu Manufacturing is considering the introduction of a family of new products. Long-term demand for the product group is somewhat predictable, so the manufacturer must be concerned with the risk of
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