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business
operations management 6th
Operations Management Providing Value In Goods And Services 3rd Edition Dilworth, James B - Solutions
1. The Lob Sport Shop has an opportunity to purchase tennis rackets from the bankrupt Foot Fault Manufacturing Co. However, Foot Fault produced the rackets with a very poor quality of strings, so that they will need new strings by the next season. The rackets can be purchased for $19, and Lob plans
2. Ozark Sportswear can purchase a special shipment of wool caps for $1.85 each. The caps can be sold for $4.95 during the fall season, but any that have not been sold by Christmas will be reduced to $1.50. The following probability distribution has been estimated for demand for these caps prior to
3. Sour Dough Bakery stocks fresh-baked bread that costs the store 74¢ per loaf. The bread is sold for $1.39 a loaf on the day it is baked and for 59¢ a loaf if it remains at the end of that day. All the old bread can be sold at the discount price. The probabilities of various levels of daily
4. The Great Newsstand stocks copies of the Sunday newspaper published ina larger city in the region. The papers cost the newsstand 50¢ each and are sold for $1.50. If they are not sold during the week, the papers are sold as scrap paper for approximately 3¢each. Demand for the paper is
5- A lightweight jacket can be purchased for $38.50 a unit before the season, and no additional units can be ordered. The jacket will sell for $69.95 during the season, and any left over at the end of the season will be priced at $26.95. The probability distribution of demand during the season is
6- For the data in problem 5, decide how many jackets the buyer should order if the store decides to price the item at $62.95 and all other factors remain the same.
7- A department store has a one-time opportunity to purchase a special style of bedroom quilt, which has holiday decorations on it, for $56.00 each. The store plans to offer the quilt to customers at a retail price of $79.00 during the season. Any quilts left over after the holidays will be sold
8- The Springfield Playground Committee is planning to sell promotional t-shirts in an effort to raise money toward building a new playground for the town. The shirts will cost the committee $6.00 each and will be priced at $15.00 before the grand opening of the playground; any shirts sold after
9. A florist wishes to stock small bouquets of flowers for the last day of Secretary’s Week.She estimates that the demand will have a normal probability distribution with a mean of 40 and a standard deviation of 15. Each bouquet will cost approximately$3.00 to prepare and will retail for $7.50.
10. Bonito’s Seafood sells fresh snapper received each morning from the coast for $4.49 per pound. If the fish is kept overnight, it will be priced at $3.95 per pound the second day. All the snapper that remains at the end of the second day is sold for cat food at 25¢ per pound. About 82 percent
11.The owner of the Mother Goose toy factory is planning stock levels and inventory review policies for next year. The entire product line consists of 16 products, each of which costs less than $50 to produce. On the basis of the forecast for next year and the cost of the items, determine the
12. A company uses a very small number of items in its business. The items are listed in the following table, as are their cost and annual use in units.a. Determine the annual dollar use, and determine which appear to be the A, B, and C items.b. Arrange the list in descending order of annual dollar
13. A random sample of 10 items was selected from the 10,000-item inventory in the Sahara Marine Manufacturing Company. The following data were obtained.a. Group the data in order of descending annual dollar use.b. Select A items, B items, and C items. PART NUMBER ANNUAL USE (UNITS) COST PER UNIT
14. Apollo Distributors handles only 10 items in its inventory. The annual use and cost of these items are listed below.a. Calculate the annual dollar use of each item, and arrange the list in the order of descending annual dollar use.b. Plot the cumulative percentage of annual dollar use against
Following is a list of raw materials and parts used in the manufacture of light lawn equipment.The annual requirement and average unit cost are given for each item. Set up the data in a spreadsheet, and categorize the items into A, B, and C classes. ANNUAL UNIT ITEM USE COST ITEM ANNUAL USE UNIT
Following is a list of raw materials and parts used in the manufacture of construction equipment. The annual requirement and average unit cost are given for each item. Set up the data in a spreadsheet, and categorize the items into A, B, and C classes. ITEM ANNUAL USE UNIT ANNUAL UNIT ANNUAL COST
1. Kmart Corp is a mass merchandise retailer with discount department stores all across the United States as well as in Puerto Rico, Guam, and the U.S. Virgin Islands: The company has survived plenty of ups and downs, and it has made many different, creative attempts to revive its business,
2. Every company is a member of at least one supply chain, and most companies are members of more than one. Large corporations, such as General Mills, producer of such famous brand name food products as Cheerios, Wheaties, Hamburger Helper, Fruit Roll-Ups, and Pop Secret Popcorn, are members of
3. Companies are constantly looking for ways to improve supply chain performance. Managers at Kawasaki, manufacturer of recreation vehicles such as jet skis and motorcycles, must continually monitor their supply chains for areas in need of improvement. Access www.kawasaki.com the Kawasaki Web site
3. Clothing manufacturers must plan to meet demand way ahead of the season during which their products are sold to consumers—sometimes 6 months or a year in advance.In addition, demand fluctuates. Visit the Web site for a clothing brand you like—say, Levi's, Old Navy, or Patagonia. Browse
2. Carnival Cruise Corp. operates five separate cruise lines, including Carnival Cruise Lines, Holland America Line, Seaborn Cruise Line, Cunard Line, and Windstar Cruises. The company also operates a tour business, Holland America Westours. By its nature, the travel business is seasonal, and must
. Weyerhaeuser, the international wood and paper products company, must constantly plan for ways to convert a vast array of inputs into outputs, for instance, pulp into paper.Weyerhaeuser has an extensive Web site that offers information about its wood and paper products, recycling efforts, forest
2. The Three River Manufacturing Company forecasts monthly demand for its product for the next year as 418, 414, 395, 381, 372, 359, 386, 398, 409, 417, 421, 425.On average there are 22 production days in a month. The work content for one unit of the product is 3 worker-days. The current production
1. Construct an electronic spreadsheet to perform aggregate planning by the trial-anderror method. Use the Imperial Sail Company example in the chapter. Enter the beginning inventory, desired ending inventory, regular-time production per employeemonth, beginning number of employees, cost to hire,
13. Assume that the company in problem 10 is a manufacturing operation and that its product can be inventoried. Assume that it costs $3 per month ($6 per bimonthly period)to hold an item in inventory. The company plans to maintain a constant production rate, begin and end the year with the same
The company discussed in problems 10 and ‘11 wants to determine the cost of meeting the demand for its services through changes in the number of employees and the use of overtime work. To keep from adding too many temporary employees during the peak demand period, the company will use overtime
Assume that the company in problem 10 can use overtime up to a maximum of 25 percent of regular-time hours. Each overtime hour costs $9. What is the average cost per unit produced during this year if the work force is maintained at a level so that overtime can be used to the maximum during the peak
Suppose that the Homefires Heating Oil Company described in problem 8 can employ temporary workers who are less skilled than its normal work force and assign these workers to routine cleanings rather than the more complicated repairs. These temporary employees work at 90 percent efficiency (that
8. The Homefires Heating Oil Company provides routine furnace maintenance and repair service at a fixed charge to its oil customers within a 25-mile radius. The company is located in Maine, which has long, cold winters and short, warm summers. This results in a seasonal demand for Homefires Heating
6- For the data in problem 4, compute for each month the total load in all the company’s key work centers.
5. For the data in problem 4:a. Develop the load profile over the 6-month horizon for department 3.b. For which product or products would you revise the schedule so the company would produce the product early and hold it in inventory until it is needed, resulting in more uniform load requirements
2. For the Adirondack Supply Company data in problem 1:a. Determine the load profiles in departments Y and Z for the schedule developed in problem 10.b. Give three possible reasons why Mr. Donald might have selected department X in preference to either of the other two departments as the place to
14. How does detailed scheduling relate to aggregate planning?
13. Discuss some of the advantages and disadvantages of hiring and laying off employees as demand increases and subsides. Should a company employ workers with the intention of laying them off within a few months? Should it just hire temporary personnel who are not expecting permanent employment?
12. Discuss some advantages and disadvantages of relying on overtime work to meet a significant portion of demand.
11. Why is the trial-and-error method of aggregate planning widely used?
10. Discuss the advantages and disadvantages of various aggregate planning methods.
9. Discuss some advantages and problems associated with planning overall employment by summing all the requirements for individual items in the company’s product line.
8. Describe in your own words the steps involved in rough-cut capacity planning.
7. What are some dangers of planning production rates and work force sizes on the basis of an aggregate product?
6. What are some methods that nonmanufacturing companies use to smooth the level of demand by removing seasonality and short-term variations in demand?
5. What is aggregate planning?
4. Why should some companies have longer planning horizons than others? What are some of the factors that determine how far ahead a company should plan?
3. Why is there some minimum horizon or time fence beyond which production should be planned?
2.a. Describe the relationship between the business plan and the production plan.b. Describe the relationship between the master production schedule and the production plan.
1. List the titles of the managers who are likely to be involved in developing the intermediate-range business plan or sales and opérations plan.
A manufacturing company has a seasonal demand pattern, with the forecast demand for each month next year equal to 1,300, 1,000, 800, 700, 700, 700, 800, 900, 1,000, 1,200, 1,400, and 1,500 units, respectively. The company plans to end the current year with about 800 units in inventory. The company
2. Southwest Airlines offers detailed job descriptions for a number of positions on its Web site, including pilot, flight attendant, airframe and powerplant mechanic, and ticket salesperson. Access the site at www.iflyswa.com (or use the keywords Southwest Airlines), and click on the area
1. Many companies now offer information about job and career opportunities as part of their Web sites. Visit the site of a company that interests you, or choose one of those mentioned in the chapter, such as Kodak or Procter & Gamble. Click on the area that contains information about job
13. Alton’s Auto Repair pays mechanics one-half the labor bill charges for the repair work they perform, or $8 per hour, whichever is higher. Repair work is billed at $24 per hour for each standard hour as stated in a reference catalog. A skilled mechanic can perform 48 standard hours of work in
12. The Omega Corporation pays its workers on a 75 percent gain-sharing plan, with bonus pay beginning at 80 percent of standard. The standard is 1,250 units per 40-hour week.Leslie Blount, whose pay is $6.90 per hour, produced 1,385 units last week.a. What is Leslie’s gross pay for the week?b.
11.The Bio Company pays its workers on a 70 percent gain-sharing plan, with bonus pay beginning at 90 percent of standard. The standard is 400 units per 40-hour week. Caroline Demarco, whose pay is $7.10 per hour, produced 440 units last week.a. What is Caroline’s gross pay for the week?b. What
10.Charles Curtis works 40 hours a week at Sunnydale Dairy. Charles is paid on an 80 percent gain-sharing plan, with bonus earnings beginning at standard. The base wage for Charles’s job is $6.75 per hour, and the standard is 43 units per hour.a. What is Charles’s weekly (40 hours) pay if he
9- George Bean works 40 hours a week at the Yahoo Yoghurt Company, which is known for its exotic flavors, such as Classic Coffee and Crazy Kiwi. George is paid on a 75 percent gain sharing plan, with bonus earnings beginning at standard. The base wage for his job is $8.10 per hour, and the standard
8- Employees in the assembly department of McDaniel Microwave Corporation are paid on a one-for-one incentive plan beginning at 90 percent of standard. Tom Minor works in this department and earns a base wage of $9.20 per hour for a 40-hour week.The standard for Tom’s job is 7 units per hour.
7- Employees in the manufacturing department of Michael Metals Company are paid on a one-for-one incentive plan beginning at 85 percent of standard. Bob Darver works in this department and earns a base wage of $8.50 per hour for a 40-hour week. The standard for Bob’s job is 20 units per hour.
6- Darnell Corporation pays employees in its billing office according to a one-for-one standard-hour plan with a bonus beginning at 100 percent of standard. The standard rate of billing is 22 bills an hour. Currently employees in this department are paid$6.50 per hour as a base wage and work 40
5- The Mountain Top Inn pays its housekeepers according to a standard hour plan. The standard rate for cleaning rooms is 4 rooms in an hour. Housekeepers are paid $5.50 an hour as a base wage and work 40 hours a week. One skilled housekeeper, who can easily clean 5 rooms an hour, wants to earn
4. The Blitz Corporation employs six workers in painting stripes on parking lots. The employees are paid by a daywork plan at $6.80 per hour. On the basis of past contracts, the manager, Ruby Smith, has established a standard of 50 yards of striping per hour for each painter. The company has just
3. An office of the state employment service in a city is responsible for interviewing persons seeking employment, placing the applicants’ qualifications in a file, and searching a file of job openings to determine if a suitable match between job and applicant can be found. The three persons
2. Prepare a multiple-activity chart to show the activities involved in preparing two cheeseburgers, two ears of corn on the cob, a tossed salad, and two glasses of iced tea(made with iced-tea mix) using a frying pan, a vegetable steaming pot, a stove, a salad bowl with serving utensils, and a
1. Go through the following list of tasks and indicate alongside each whether it would be better performed by a human or a machine.Make rapid and consistent responses to input signals.Recognize patterns of complex stimuli that may vary from situation to situation.Adapt decisions to situational
23. Under what conditions is a group incentive plan generally more appropriate than an individual incentive plan?
22. What is gain sharing?
21. Distinguish between a piece-rate plan and a standard-hour plan.
20. For what reasons might a company elect to use a wage incentive plan?
19. Define a wage incentive plan.
18. Briefly describe two categories of rewards that people may derive from their jobs.
17. Why is motivation important to organizations?
16. How is it possible to perform micromotion study at the extremely detailed therblig level?
15. What are the objectives of motion study?
14. How are anthropometric data and human engineering useful in the design of some jobs?
13. Discuss briefly some physical factors that should be taken into account in job design.
12. Can all jobs be enriched successfully? Briefly discuss the reasons for your answer.
11. Under what conditions is job enrichment likely to be successful?
10. Discuss some of the differences between horizontal and vertical job expansion.
9. Discuss the use of quality circles.
8. Name and discuss three methods that are used to provide variety in jobs.
7. How do motivators and hygiene factors compare to extrinsic rewards and intrinsic re- wards?
6. What are some of the motivators?
5. What are some of the hygiene factors mentioned in Herzberg's two-factor theory?
4. How do you think most jobs are designed today?
3. Discuss the relevance of feedback in job design.
2. What three criteria should be considered in job design?
1. What is job design?
The following are 3 enouihe of demand data for emiersency room service at a ioe pital. Using « = 0.2 and a forecast of 706 for the first month, calculate exponentially |smoothed forecasts for the demand in months 2 through 4. MONTH ACTUAL - 1 721 23 2 816 3 671
The following numbers are 5 weeks’ data in a time series: 38, 41, 39, 43, 44. Starting with a smoothed average base of 35 and an initial trend estimate of 2.0, use a = 0.3 and 8 = 0.5 to forecast demand for these 5 Ne and make a forecast for each of the 3 weeks beyond these five.
The following are a company’s quarterly demand figures for the past 2 years.(a) Compute l-year moving averages centered at the end of quarters 2.5 through 6.5, respectively, to remove the seasonality (i.e., assume the demand figures are at the center of the time periods they include).(b) Compute
1. Why is sales forecasting the key to many other types of forecasts?
2. What is meant by a qualitative or subjective as compared to a quantitative or statisti- cal forecast?
3. Is forecasting a skill or a science? Explain.
4. Why do some investments in forecasting yield a negative net return?
5. Why does the marketing function usually make sales forecasts?
6. When should a quantitative forecast be substituted for judgment?
7. Name three subjective methods of forecasting, and give the origin of the data for each.
8. Name three quantitative or statistical forecasting methods that use time as the basis for changes in demand.
9. What cautions should be observed in checking on statistical forecasts? Why?
10. Why are computers often used in evaluating forecast models to select one that ap- pears to be best suited to a pattern of previous demand and for making routine, repetitive forecasts after a company has selected a model?
11. Discuss a possible reason for using (a) the MAD, (b) the MSE, and (c) the MAPE as a measure with which to compare the accuracy of two forecast models.
12. Why do forecasting methods need to be monitored or controlled?
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