Operations Management Processes And Supply Chains Global Edition 11th Edition Krajewski, Lee J. - Solutions

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A large-scale bakery is laying out a new production process for its packaged bread, which it sells to several grocery chains. It takes 12 minutes to bake the bread. How large of an oven is required so that the company is able to produce 4200 units of bread per hour (measured in the number of units
Based on the data provided in Table 2.6, what is the flow time of customers from 9:00 a.m. to 10:00 a.m.?
Based on the data provided in Table 2.6, what is the flow rate of customers from 9:00 a.m. to 10:00 a.m.?
Based on the data provided in Table 2.5, what is the flow time of callers from 8:00 a.m. to 8:20 a.m.?
Based on the data provided in Table 2.5, what is the flow rate of callers from 8:00 a.m. to 8:20 a.m.?
A furniture maker purchases 1200 kg of wood per week to make Adirondack chairs. Each chair uses 25 kg of wood. At any one time, on average, there are 300 chairs being made at various stages of production. On average, how much time elapses between when the wood arrives for a chair and when the chair
A shipping company operates 10 container ships that can each carry 5000 containers on each journey between ports. They want to be able to load and unload 20,000 containers each week. Assume their ships always travel fully loaded. What is the longest average travel time between ports that allows
A call center receives 25 callers per minute on average. On average, a caller spends 1 minute on hold and 3.5 minutes talking to a service representative. On average, how many callers are “in” the call center (meaning that they are either on hold or talking to a service representative)?
At rush hour, two people per second step onto an escalator. The escalator takes 30 seconds to bring a person from the bottom to the top. How many people are on the escalator during rush hour?
A state park is open from 7 a.m. to 6:30 p.m. Table 2.4 displays data regarding arrivals and departures of cars during the day from the park. What is the average flow rate of cars in this park?
A state park is open from 7 a.m. to 6:30 p.m. Table 2.4 displays data regarding arrivals and departures of cars during the day from the park. What is the average flow time of cars in this park?
A suburb of Dayton, Ohio, has four local dry cleaners that compete with each other on the basis of price and service speed. Each of them can perform the same basic services at the same level of quality. The following table provides the price that each dry cleaner charges to clean a two-piece suit,
Four regional less-than-truckload (LTL) carriers handle shipments traveling from Lexington, Kentucky, to Springfield, Illinois. All four companies say that their normal service time to deliver these shipments is 2 business days. The four carriers compete with each other on the basis of price and
Lunch@Work is a student-initiated venture that provides office workers with lunch brought right to their desks. What operational decisions will the venture have to make?
What are supply–demand mismatches for the operator of a fleet of ambulances? What economic and social costs could you envision?
What mismatches between supply and demand can you envision? What would be costs related to these mismatches? Answer: Depending on how many guests show up and how much they want to eat, we can end up in one of two cases: • Too much demand: This corresponds to more guests than you have expected
You are organizing a pizza night with your friends. You expect somewhere between 10 and 20 guests, so you decide to order food for
You have a choice between five restaurants that differ from each other with respect to their food quality [as measured by the number of stars (*) the restaurant received in customer reviews; this ranges from one to five stars, with five being the best] as well as their price.Which of these
There are four cab companies in a large urban area. Prices are identical across the four companies, and so the companies compete on (a) the response time it takes between receiving a call requesting a cab and the arrival of the cab, and (b) the cleanliness of the cab and the courtesy of the driver.
The following is a list of customer complaints. To which dimension of customer utility do the complaints relate?a. I had to spend 27 minutes on hold before talking to an agent.b. This car is not fuel-efficient at all.c. When I needed a restroom in the amusement park, I had to walk almost a mile.d.
Which of the following is most related to the operations management of an organic sheep farm?a. The amount of land they rent for grazing sheep.b. The amount borrowed from a bank.c. The legal structure selected for the owners.d. The color of their brand logo.
Big Jim plows snow for five residential customers in northern New Hampshire. Placing a Cartesian coordinate system on a map of his service area, with his home at the origin (A), Big Jim located his five customers at coordinates: B (10,40);C (22,20); D (35,37); E (40,25); F (50,40). He has two ways
Supply chain sustainability is a concept that has recently emerged in answer to global concerns about climatic changes and ethical considerations when Western firms came under activists’ scrutiny while doing business in certain developing economies. Consequently, suppliers need to be carefully
Supply chain sustainability is about combining elements of social responsibility, financial responsibility, and environmental responsibility. The chapter opener discusses how FedEx actively participated in transporting humanitarian aid to specific areas in the Philippines. Define each element of
Horizon Cellular manufactures cell phones for exclusive use in its communication network. Management must select a circuit board supplier for a new phone soon to be introduced to the market. The annual requirements are 50,000 units and Horizon’s plant operates 250 days per year. The data for
We discussed the inventory and supply chain considerations such as small lot sizes, close supplier ties, and quality at the source in Chapter 6, “Designing Lean Systems.” What are the implications of these principles for supply chain integration?
Supply chain management is, among other things, about managing information flows. From the many examples provided in the chapter, describe how information flows are managed in order to improve supply chain integration.
The Coral Princess cruise line illustrates how many goods and services can be seamlessly coordinated without the guests seeing any of the operations being performed at any given moment. This requires well coordinated operations and logistics. Define supply chain integration and illustrate how this
Hospitality businesses, such as fast-food restaurants, need to be located close to their customers as opposed to manufacturing plants that can be located farther away. Consequently the demographics of the intended location need to be taken into account. The regional manager of a growing fast-food
The chapter opener shows BMW’s rationale behind opening a plant in South Carolina. The entire process took several years, required careful planning, and incurred several million dollars in research fees. Assuming that in a competitive global environment business, decisions need to be implemented
The following data were collected for a retailer:Cost of goods sold $4,500,000 Gross profit $600,000 Operating costs $500,000 Operating profit $200,000 Total inventory $1,100,000 Fixed assets $750,000 Long-term debt $300,000 Assuming that there are 52 business weeks per year, express total
The Bawl Corporation supplies alloy ball bearings to auto manufacturers. Because of its specialized manufacturing process, considerable work-in-process and raw materials are needed. The current inventory levels are $2,200,000 and$1,580,000, respectively. In addition, finished goods inventory is
One product line at Spearman Fishing Industries has 13 turns per year and an annual sales volume (at cost) of $893,300.How much inventory is being held, on average?
Jack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce inventories. A recent accounting statement shows the following inventory investment by category: raw materials, $3,426,300; workin-process, $7,098,000; and finished goods, $2,644,000.This year’s
Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $48 million.During the year, the inventory of accessories turned over six times. For the next year, Cyberphone plans to increase annual sales (at cost) by 25 percent.a. What is the increase
EBI Solar uses a high-tech process to turn silicon wafers into tiny solar panels. These efficient and inexpensive panels are used to power low-energy, hand-held electronic devices. Last year, EBI Solar turned their inventory 3.7 times and had a cost of goods sold of $2.8 million. Assuming 52
The Boeing 787 Dreamliner illustrates the conundrum faced when designing its supply chain. Shortage of high quality engineers prevents it from outsourcing certain components.This affects the sales as some countries will only buy aircrafts if components are outsourced. Once the make-or-buy decisions
Amazon.com illustrates how a new player in the retail business can overtake established organizations by focusing exclusively on online retail and strategically placing fulfillment centers across a country, in order to establish low and consistent delivery speeds. The size and setup of these
The partially completed inventory record for the rotor subassembly in Figure 11.36 shows gross requirements, scheduled receipts, lead time, and current on-hand inventory.a. Complete the last three rows of the record for an FOQ of 150 units.b. Complete the last three rows of the record by using the
If inventory consists of two units of B, one unit of F, and three units of G, how many units of G, E, and D must be purchased to produce five units of product A?
Refer to Figure 11.23 and Solved Problem
Consider a service provider that is in the delivery business, such as UPS or FedEx. How can the principles of MRP and BOR be useful to such a company?
Consider companies like Amazon.com and Dow Corning, who have successfully utilized ERP systems in their company operations. Explain the design of an ERP system. How can such an integrated information system benefit a company?
Consider a company like Emirates, which acquires new airplanes from Airbus or Boeing. Identify dependent demands for both goods and services associated with these acquisitions.Using examples, of both goods and services, discuss the similarities and differences between the two.
The Barberton Municipal Division of Road Maintenance is charged with road repair in the city of Barberton and the surrounding area. Cindy Kramer, road maintenance director, must submit a staffing plan for the next year based on a set schedule for repairs and on the city budget. Kramer estimates
A golf specialty wholesaler operates 50 weeks per year.Management is trying to determine an inventory policy for its 1-irons, which have the following characteristics:Demand 1D2 = 2,000 units>year Demand is normally distributed Standard deviation of weekly demand = 3 units Ordering cost = $40>order
Using the same information as in Problem 21, develop the best policies for a periodic review system.a. What value of P gives the same approximate number of orders per year as the EOQ? Round to the nearest week.b. What safety stock and target inventory level provide an 88 percent cycle-service level?
Suppose that Sam’s Cat Hotel in Problem 10 uses a P system instead of a Q system. The average daily demand is d = 90>6 = 15 bags and the standard deviation of daily demand is sd =sweek 26= 115>262 = 6.124 bags.a. What P (in working days) and T should be used to approximate the cost trade-offs of
Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items. The review interval is 6 weeks, and the lead time for receiving the materials ordered from its wholesaler is 3 weeks. Weekly demand is normally distributed, with a mean of 100 units and a standard
A new order is placed on the day the reorder point is reached. The lead time is 3 business days. For example, an order placed on Monday will be delivered on Thursday. Simulate the performance of this Q system for the next 3 weeks (18 work days). Any stockouts result in lost sales (rather than
The Georgia Lighting Center stocks more than 3,000 lighting fixtures, including chandeliers, swags, wall lamps, and track lights. The store sells at retail, operates 6 days per week, and advertises itself as the “brightest spot in town.” One expensive fixture is selling at an average rate of 5
Muscle Bound is a chain of fitness stores located in many large shopping centers. Recently, an internal memo from the CEO to all operations personnel complained about the budget overruns at Muscle Bound’s central warehouse. In particular, she said that inventories were too high and that the
A company begins a review of ordering policies for its continuous review system by checking the current policies for a sample of SKUs. Following are the characteristics of one item.Demand 1D2 = 64 units>week 1Assume 52 weeks per year2 Ordering or setup cost 1S2 = $50>order Holding cost 1H2 =
Your firm uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics.Demand 1D2 = 20,000 units>year Ordering cost 1S2 = $40>order Holding cost 1H2 = $2>unit>year Lead time 1L2 = 2 weeks Cycle@service level = 95 percent Demand is normally
You are in charge of inventory control of a highly successful product retailed by your firm. Weekly demand for this item varies, with an average of 200 units and a standard deviation of 16 units. It is purchased from a wholesaler at a cost of$12.50 per unit. You are using a continuous review system
In a continuous review inventory system, the lead time for door knobs is 5 weeks. The standard deviation of demand during the lead time is 85 units. The desired cycle-service level is 99 percent.The supplier of door knobs streamlined its operations and now quotes a one-week lead time. How much can
Consider again the kitty litter ordering policy for Sam’s Cat Hotel in Problem 13.a. Suppose that the weekly demand forecast of 95 bags is incorrect and actual demand averages only 65 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error?b.
Sam’s Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.75 per bag. The following information is available about these bags.Demand = 95 bags>week Order cost = $58>order Annual holding cost = 25 percent of cost
At Dot Com, a large retailer of popular books, demand is constant at 20,400 books per year. The cost of placing an order to replenish stock is $35, and the annual cost of holding is $6 per book. Stock is received 5 working days after an order has been placed. No backordering is allowed. Assume 250
Yellow Press, Inc., buys paper in 1,500-pound rolls for printing.Annual demand is 2,500 rolls. The cost per roll is $800, and the annual holding cost is 15 percent of the cost. Each order costs $50 to process.a. How many rolls should Yellow Press, Inc., order at a time?b. What is the time between
Terminator, Inc. manufactures a motorcycle part in lots of 350 units. The raw materials cost for the part is $160, and the value added in manufacturing 1 unit from its components is $300, for a total cost per completed unit of $460. The lead time to make the part is 2 weeks, and the annual demand
A part is produced in lots of 1,400 units. It is assembled from 2 components worth $70 total. The value added in production(for labor and variable overhead) is $60 per unit, bringing total costs per completed unit to $130. The average lead time for the part is 8 weeks and annual demand is 3,600
What is the relationship between inventory and the nine competitive priorities we discussed in Chapter 1, “Using Operations to Create Value”? Suppose that two competing manufacturers, Company H and Company L, are similar except that Company H has much higher investments in raw materials,
At a hydrocarbon processing factory, process control involves periodic analysis of samples for a certain process quality parameter. The analytic procedure currently used is costly and time consuming. A faster and more economical alternative procedure has been proposed. However, the numbers for the
Figure 8.9 shows summer air visibility measurements for Denver, Colorado. The acceptable visibility standard is 100, with readings above 100 indicating clean air and good visibility, and readings below 100 indicating temperature inversions caused by forest fires, volcanic eruptions, or collisions
Prepare a project budget showing the cost of each activity and the total for the project. Can the project be completed within the budget? Will the project require more than $3,600 in any week? To answer this question, assume that activities B, C, and D must be paid for when the item is received
Draw a network diagram of the project similar to Figure 7.3. Determine the activities on the critical path and the estimated slack for each activity.
Construct a table containing the project activities using the letter assigned to each activity, the time estimates, and the precedence relationships from which you will assemble the network diagram.
Using the information provided, prepare the report that Vicky Roberts requested, assuming that the project will begin immediately. Assume 45 working days are available to complete the project, including transporting the car to Detroit before the auto show begins. Your report should briefly discuss
What is critical path analysis? How is it implemented in project management?
What is the work breakdown structure (WBS), and why is it so essential for project management? When providing your answer, make sure to discuss the concept of “activity ownership.”
Figure 6.12 provides a new current state value stream map for the family of retainers at the Jensen Bearings, Inc., firm described in Example 6.1. This map depicts the value stream after Kline Steel agrees to accept daily orders for steel sheets and Jensen Bearings continues to deliver the finished
The Farm-4-Less tractor company produces a grain combine(GC) in addition to both a large (LT) and small size tractor(SM). Its production manager desires to produce to customer demand using a mixed-model production line. The current sequence of production, which is repeated 30 times during a shift,
List the pressures that lean systems pose for supply chains, whether in the form of process failures due to inventory shortages or labor stoppages, and so forth. Reflect on how these pressures may apply to a firm that is actually implementing lean philosophy in their operations.
Charming Fashion, a Spanish company that manufactures handbags and shoes for young customers, has decided to introduce aspects of lean systems into its processes. It is especially interested in the Kanban system since some of its more important buyers are Japanese department stores that favor this
Melissa’s Photo Studio offers both individual and group portrait options. The process flow diagram in Figure 5.10 shows that all customers must first register and then pay at one of two cashiers. Then, depending on whether they want a single or group portrait they go to different rooms. Finally,
Returning to Problem 4, under both assumption of cashiers and baggers working together (part a.) and, cross-trained, working independently (part b.) how many employees should Food Goblin Supermarket schedule if it requires a 10 percent capacity cushion?
A process currently services an average of 61 customers per day. Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. If demand is expected to be 80 percent of the current level in five years and management wants to have a
The Dahlia Medical Center has 33 labor rooms, 16 combination labor and delivery rooms, and 4 delivery rooms. All of these facilities operate around the clock. Time spent in labor rooms varies from hours to days. The average uncomplicated delivery requires about one hour in the delivery room. The
Memotec Taiwan, a company that manufactures motherboards for laptops, has recently experienced a surge in its overseas orders. What type of considerations would you recommend this company offers for it to estimate its capacity requirements in the long run? Explain what the company has to take into
Explain how unethical business practices degrade the quality of the experience a customer has with a service or product.How is the International Organization for Standardization trying to encourage ethical business behavior?
Healthy Food, a Singapore-based company operating in the sport-food sector, manufactures various supplements, energy bars and drinks, and fat burners. The company is now in the process of launching a new product—a chocolate energy bar for women, in addition to other products already
Should a very pricey hand-crafted object of beauty, use automated equipment for manufacturing some of its component parts needed for assembling the object? Do you think it is a mistake to use automation in this way?
Diagrams of two self-service gasoline stations, both located on corners, are shown in Figure 2.19(a) and (b). Both have two rows of four pumps and a booth at which an attendant receives payment for the gasoline. At neither station is it necessary for the customer to pay in advance. The exits and
Suppose you are in charge of a large mailing to the alumni of your college inviting them to contribute to a scholarship fund. The letters and envelopes have been individually addressed(mailing labels were not used). The letters are to be processed (matched with correct envelope, time estimated to
Your class has volunteered to work for Referendum 13 on the November ballot, which calls for free tuition and books for all college courses except Operations Management. Support for the referendum includes assembling 10,000 yard signs (preprinted water-resistant paper signs to be glued and stapled
Big Bob’s Burger Barn would like to graphically depict the interaction among its lunch-ordering customers and its three employees. Customers come into the restaurant and eat there rather than drive through and eat in the car. Using the brief process descriptions below, develop a service
Prepare a flowchart of the field service division process at DEF, as described here. Start from the point where a call is received and end when a technician finishes the job.DEF was a multibillion dollar company that manufactured and distributed a wide variety of electronic, photographic, and
Do Problem 6 using a process chart spreadsheet of your own design, one that differs from the Process Chart Solver in OM Explorer. It should have one or more columns to record information or metrics that you think should be collected to analyze the process (see Problem 5).
Founded in 1970, ABC is one of the world’s largest insurance companies with locations in 28 countries. Given the following description, flowchart the new policy setup process as it existed in 1970:Individual customers who wanted to set up a new policy would visit one of ABC’s 70 branch offices
Do Problem 4 using a process chart spreadsheet of your own design, one that differs from the Process Chart Solver in OM Explorer. It should have one or more columns to record information or metrics that you think are relevant, be they external customer contacts, time delays, completion times,
Consider the Custom Molds, Inc., case at the end of this chapter. Prepare a flowchart of the mold fabrication process and the parts manufacturing process, showing how they are linked. For a good tutorial on how to create flowcharts, see
Two different manufacturing processes are being considered for making a new product. The first process is less capital-intensive, with fixed costs of only $46,400 per year and variable costs of$720 per unit. The second process has fixed costs of $400,100 but has variable costs of only $210 per
Two different manufacturing processes are being considered for making a new product. The first process is less capital- intensive, with fixed costs of only $50,000 per year and variable costs of $700 per unit. The second process has fixed costs of $400,000 but has variable costs of only $200 per
Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by $155,000, including the annual equivalent cost of the capital investment and the salary of one more technician. Each new patient is expected to bring in $2,920 per year in additional revenue,
Benchmarking, a valuable and quite efficient tool for process redesigning, often encounters serious challenges during its implementation. One of the most pronounced difficulties is in collecting benchmarking data. This is why sometimes internal benchmarking—selecting the use of an organizational
The Hydro-Electric Company (HEC) has three sources of power. A small amount of hydroelectric power is generated by damming wild and scenic rivers; a second source of power comes from burning coal, with emissions that create acid rain and contribute to global warming; the third source of power comes
Continuous improvement recognizes that many small improvements add up to sizable benefits. Will continuous improvement take a company at the bottom of an industry to the top? Explain.
Rate operators at a call center, who respond to queries from customers who call in about the company’s product, on each of the five dimensions of customer contact in Table 2.1.Use a seven-point scale, where 1 = very low and 7 = very high. For example, the operators newer are physically present
Consider the range of processes in the financial services industry.What position on the customer-contact matrix would the process of selling financial services to municipalities occupy? The process of preparing monthly fund balance reports?Explain why they would differ.

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Operations Management Processes And Supply Chains Global Edition 11th Edition Krajewski, Lee J. - Solutions

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