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business
operations management 6th
Operations Management Sustainability And Supply Chain Management 13th Global Edition Jay Heizer, Barry Render, Chuck Munson - Solutions
Three departments—milling (M), drilling (D), and sawing (S)—are assigned to three work areas in Victor Berardis’s machine shop in Kent, Ohio. The number of workpieces moved per day and the distances between the centers of the work areas, in feet, follow.Pieces Moved between Work Areas Each
Distances between Centers of Work Areas(Departments) in Feet M D S M — 10 5 D — — 8 S — — —It costs $2 to move 1 workpiece 1 foot.What is the cost? lop52
Roy Creasey Enterprises, a machine shop, is planning to move to a new, larger location. The new building will be 60 feet long by 40 feet wide. Creasey envisions the building as having six distinct production areas, roughly equal in size. He feels strongly about safety and intends to have marked
A job shop in the new industrial area of Six of October, Egypt, wants to arrange four work centers to minimize the interdepartmental material-handling cost. The flow and the current layout are shown below. lop52 X Y M Z 80 m Number of workpieces moved between the different work centers per day
You have just been hired as the director of operations for Reid Chocolates, a purveyor of exceptionally fine candies.Reid Chocolates has two kitchen layouts under consideration for its recipe making and testing department. The strategy is to provide the best kitchen layout possible so that food
Reid Chocolates (see Problem 9.6) is considering a third layout, as shown below. Evaluate its effectiveness in tripdistance feet. lop52 Kitchen layout #3 Walking distance in feet Refrig. Counter Sink 12 14 10 Storage Stove
The National Library of China consists of four major sections, each occupying different floors of a seven-storey building. A study shows that the average total distance covered by visitors per day among different sections of the library is around 1,500 km. The following new layout is being proposed
Reid Chocolates (see Problem 9.6) has yet another layout it wishes to consider. Layout 5, which follows, has what total trip distance? lop52 Kitchen layout #5 Walking distance in feet Refrig. Counter Stove 12/ 12 (2) 5 3 3 Sink Storage (3)
A large equipment manufacturer uses five adjacent work centers to manufacture its equipment. The distance between any two adjacent work centers is 100 meters. The number of daily trips between the different work centers is given below: lop52 Number of daily trips between different work centers
What is the maximum number of applications per hour that can be handled by the present configuration of the process? lop52
How many applications can be processed per hour if a second clerk is added to check for violations? lop52
If the second clerk could be added anywhere you choose (and not necessarily to check for violations, as in Question 2), what is the maximum number of applications the process can handle?What is the new configuration? lop52
How would you suggest modifying the process to accommodate 120 applications per hour? What is the cost per application of this new configuration? lop52
Identify the many variables that a hospital needs to consider in layout design. lop52
What are the advantages of the circular pod design over the traditional linear hallway layout found in most hospitals? lop52
Figure 9.21 illustrates a sample linear hallway layout. During a period of random observation, nurse Thomas Smith’s day includes 6 trips from the nursing station to each of the 12 patient rooms (back and forth), 20 trips to the medical supply room, 5 trips to the break room, and 12 trips to the
Figure 9.22 illustrates an architect’s drawing of Arnold Palmer Hospital’s new circular pod system. If nurse Susan Jones’s day includes 7 trips from the nursing pod to each of the 12 rooms(back and forth), 20 trips to central medical supply, 6 trips to the break room, and 12 trips to the pod
The concept of servicescapes is discussed in this chapter.Describe why this is so important at Arnold Palmer Hospital, and give examples of its use in layout design. lop52
As technology and costs change, hospitals continue to innovate. The reduced cost of computers means some hospitals have moved from a central computer at the nurse’s station to computers in the room or on carts (see photo in the Global Company Profile for Chapter 6). What changes in overall
What analytical techniques are available to help a company like Wheeled Coach deal with layout problems? lop52
What suggestions would you make to Bob Collins about his layout? lop52
How would you measure the “efficiency” of this layout? lop52
Which of the following statements best describes office layout?a) Groups workers, their equipment, and spaces/offices to provide for movement of information.b) Addresses the layout requirements of large, bulky projects such as ships and buildings.c) Seeks the best personnel and machine utilization
For a focused work center or focused factory to be appropriate, the following three factors are required: lop52 a)b)c)
Before considering a product-oriented layout, it is important to be certain of: lop52 a)b)c)d)
Identify and explain seven major factors that affect location decisions 374
Compute labor productivity 374
Apply the factor-rating method 377
Use the center-of-gravity method 380
Understand the differences between service- and industrial-sector location analysis 383.
How is FedEx’s location a competitive advantage? Discuss.Lop9
Why have many manufacturing facilities relocated from Western Europe to Asia? Discuss the motives and risks. Lop9
Jaguar Land Rover opened its first plant in China in 2014.Discuss the main reasons behind this decision.Lop9
What is clustering?Lop9
How does factor weighting incorporate personal preference in location choices?Lop9
What are the advantages and disadvantages of a qualitative (as opposed to a quantitative) approach to location decision making?Lop9
Review the location of shops and services in your local shopping center. Can you find examples of clustering in the retail sector?Lop9
What are the major factors that firms consider when choosing a country in which to locate?Lop9
What factors affect region/community location decisions?Lop9
List factors, other than globalization, that affect the location decision.Lop9
How can the center-of-gravity method be used to find the best locations for local services such as public libraries, medical centers, or post offices? What constraints should be considered when the method is used in large, congested cities?Lop9
What are the three steps to locational cost–volume analysis?Lop9
Why shouldn’t low wage rates alone be sufficient to select a location?Lop9
Distribution centers have a key role in ensuring quick home delivery of products in online sales. What techniques can be employed by retailers to select the best locations for their distribution centers?Lop9
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.Lop9
Asda, a leading supermarket in the U.K., is taking its clickand-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
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? Lop9
Subway, with more than 27,000 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.FACTOR WEIGHT MAITLAND BAPTIST CHURCH NORTHSIDE MALL Space .30 60 70 80 Costs .25 40 80 30 Traffic
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 following table gives the factors that Gilbert thinks are important, their weights, and the scores for Mobile and
Brazil’s fast-growing economy has been largely dependent on its freight transport capacity. A recent study has categorized 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
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
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
Pan American Refineries, headquartered in Houston, must decide among three sites for the construction of a new oil-processing 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:FACTOR FACTOR NAME RATING
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
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
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.
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
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
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
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 minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered
The following table gives the map coordinates and the shipping loads for a set of cities that we wish to connect through a central hub.CITY MAP COORDINATE (x, y) SHIPPING LOAD A (5, 10) 5 B (6, 8) 10 C (4, 9) 15 D (9, 5) 5 E (7, 9) 15 F (3, 2) 10 G (2, 6) 5a) Near which map coordinates should the
A chain of home health care firms in Louisiana needs to locate a central office from which to conduct internal audits and other periodic reviews of its facilities. These facilities are scattered throughout the state, as detailed in the following table. Each site, except for Houma, will be visited
Todd’s Direct, a major TV sales chain headquartered in New Orleans, is about to open its first outlet in Mobile, Alabama, and wants to select a site that will place the new outlet in the center of Mobile’s population base. Todd examines the seven census tracts in Mobile, plots the coordinates
SEVEN convenience store, which opened its first store in New Delhi’s Lajpat Nagar in 2005, presently operates 38 round-the-clock stores in India’s capital region. Assume that the chain is planning to open its new branch in the capital’s suburbs and has come up with three options that have
When placing a new medical clinic, the county health commissioner, Vicky Luo, wishes to consider three sites. The pertinent data are given in the following table. Which is the best site (assuming a higher weight is more desirable than a lower one)?SCORES LOCATION FACTOR WEIGHT DOWNTOWN SUBURB
A Detroit seafood restaurant is considering opening a second facility in the suburb of West Bloomfield. The following table shows its ratings of five factors at each of four potential sites. Which site should the owner, Lucy Lyu, select?SITE FACTOR WEIGHT 1 2 3 4 Affluence of local population 10 70
The fixed and variable costs (in U.S. dollars) for the new recycling plant that Eldon Yi is opening in Australia are computed as follows:COST VICTORIA PERTH Fixed $1,000,000 $800,000 Variable $73/unit $112/unita) Over what range is each city preferable?b) For a recycling of 5,000 units, which site
The fixed and variable costs for four potential plant sites for Brent Snyder’s Ski Supplies are shown here:SITE FIXED COST PER YEAR VARIABLE COST PER UNIT Atlanta $125,000 $6 Burlington 75,000 5 Cleveland 100,000 4 Denver 50,000 12? Lop9
Katie Reynolds owns two exclusive women’s clothing stores in Miami. In her plan to expand to a third location, she has narrowed her decision to three sites—one in a downtown office building, one in a shopping mall, and one in an old Victorian house in the suburban area of Coral Gables. She
Xun Xu Health and Fitness has several production facilities scattered around the central and northern part of Iowa. It would be desirable to have a distribution center from which to send product to retailers such as Sears, WalMart, Kmart, and large sporting equipment retailers. Using the data in
The main post office in Tampa, Florida, is due to be replaced with a much larger, more modern facility that can handle the tremendous flow of mail that has followed the city’s growth since 1970. Since all mail, incoming or outgoing, travels from the seven regional post offices in Tampa through
Exemption from county and municipal taxes for 5 years? Lop9
Free water and sewage services? Lop9
Construction of a second loading dock—free of cost—at the industrial site? Lop9
An agreement to issue $500,000 in industrial bonds for future expansion? Lop9
Public-financed training of workers in a local industrial trade school? Lop9
Evaluate the inducements offered Southern Recreational Vehicle Company by community leaders in Ridgecrest, Mississippi. Lop9
What problems would a company experience in relocating its executives from a heavily populated industrialized area to a small rural town? Lop9
Evaluate the reasons cited by O’Brian for relocation. Are they justifiable? Lop9
What legal and ethical responsibilities does a firm have to its employees when a decision to cease operations is made? Lop9
Visit the Web site for PSTYE 2003 (www.gemapping.com/downloads/targetpro_brochure.pdf). Describe the psychological profiling (PSYTE) clustering system. Select an industry, other than restaurants, and explain how the software can be used for that industry. Lop9
What are the major differences in site location for a restaurant versus a retail store versus a manufacturing plant? Lop9
Red Lobster also defines its trade areas based on market size and population density. Here are its seven density classes:DENSITY CLASS DESCRIPTION HOUSEHOLDS PER SQ. MILE 1 Super Urban 8,000+2 Urban 4,000−7,999 3 Light Urban 2,000−3,999 4 First Tier Suburban 1,000−1,999 5 Second Tier Suburban
From Munday’s Standard Market Report checklist, select any other four categories, such as population (A1), hotels (B2), or restaurants/nightclubs (D), and provide three subcategories that should be evaluated. (See item C1 [airport] for a guide.) Lop9
Which is the highest rated of the four European cities under consideration, using the table? Lop9
Why does Hard Rock put such serious effort into its location analysis? Lop9
Under what conditions do you think Hard Rock prefers to franchise a cafe? Lop9
The factors involved in location decisions includea) foreign exchange.b) attitudes.c) labor productivity.d) all of the above. Lop9
Evaluating location alternatives by comparing their composite(weighted-average) scores involvesa) factor-rating analysis.b) cost–volume analysis.c) transportation model analysis.d) linear regression analysis.e) crossover analysis. Lop9
Define capacity 340
Determine design capacity, effective capacity, and utilization 341
Perform bottleneck analysis 347
Compute break-even 350
Determine expected monetary value of a capacity decision 354
Compute net present value 355
Distinguish between design capacity and effective capacity. lop25
What is effective capacity? lop25
What is efficiency? lop25
Distinguish between effective capacity and actual output. lop25
Explain why doubling the capacity of a bottleneck may not double the system capacity. lop25
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