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business
operations management

Questions and Answers of Operations Management

Kayco Stamping in Fort Worth, Texas, ships sheet metal components to a switch box assembly plant in Waterford, Virginia. Each component weighs approximately 25 pounds, and 50 components fit on a
Jucio, an orange juice manufacturer in Liverpool, UK, imports fresh oranges from Spain. Jucio imports 6,000 pounds of fresh orange every week and its freight classification is 85. The company
New business and subscription models are emerging in e-commerce such as the one followed by JustFab. The company's style experts are able to handpick shoes and handbags for each customer on the basis
Arts N Crafts Industries manufacturers high-end light fixtures, which it sells internationally. The company is responsible for paying for shipping its product to a distributor located in Atlanta,
Mulan sells liquid detergents to hotels, hospitals, and individual customers through a network of retailers and wholesalers. To reduce environmental impact, the company is considering selling
The owner of a small manufacturing business has patented a new device for washing dishes and cleaning dirty kitchen sinks. Before trying to commercialize the device and add it to his or her existing
Herron Company is screening three new product ideas: A, B, and C. Resource constraints allow only one of them to be commercialized. The performance criteria and ratings, on a scale of 1 (worst) to 10
Adele Weiss manages the campus flower shop. Flowers must be ordered three days in advance from her supplier in Mexico. Although Valentine's Day is fast approaching, sales are almost entirely
White Valley Ski Resort is planning the ski lift operation for its new ski resort. Management is trying to determine whether one or two lifts will be necessary; each lift can accommodate 250 people
Akiko, a mobile Vegan café, in London sells wraps, bowls, and burgers. It employs two sandwich artists to assemble the wraps as per customer requests. The café’s current daily labor cost is
Student tuition at Boehring University is $150 per semester credit hour. The state supplements school revenue by $100 per semester credit hour. Average class size for a typical 3-credit course is 50
Natalie Attire makes fashionable garments. During a particular week, employees worked 360 hours to produce a batch of 132 garments, of which 52 were “seconds” (meaning that they were flawed).
Anglo American plc is a multinational mining company with its headquarters in South Africa. It is the world’s largest producer of platinum as well as a major producer of diamond, copper, nickel,
Using the data from Problem $5.16, if gas prices rose to $3.00 per gallon, what would be the new crossover point in miles?Data from problem $5.16Given the data in Problem $5.15 and an alternative
Based on the crossover point in miles found in Problem $5.16, what is this point in years?Data from Problem $5.16Given the data in Problem $5.15 and an alternative hybrid vehicle with the
Make an operations chart for putting paper into a printer.
Refer to Problem 8.1. Shipping cost from Myanmar to Denver, Colorado, the final destination, is $3.00 per unit. Shipping cost from China to Denver is $2.00 per unit, while the shipping cost from
The following data represent observations for a task in an assembly process. How many observations would be necessary for the observer to be 99% confident that the average task time is within 5% of
The data in the following table represent time-study observations for a metalworking process. On the basis of these observations, find the normal time for each element and the standard time for the
Martha’s Sweets is famous for its boxed candies, which are sold primarily to businesses. About 30% of the candies are gift wrapped. One operator had the following observed times for gift wrapping
Premier Bicycle Company, located in Knoxville, Tennessee, knows that the strength of its extensive supply chain is a key factor in its production success. The 90-year-old company is the nation’s
Nautique Boat Company, headquartered on a 200-acre campus with two lakes, is the leading manufacturer of waterskiing, wakeboarding, and wake-surfing boats in the U.S. Since the 1962 introduction of
Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop its aggregate schedule. The cost accounting department has supplied you the costs relevant to the aggregate
Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as follows:The
You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua (see Problem 13.7) that you can do a better job at aggregate planning
Revenue management was once the exclusive domain of the airline industry. But it has since spread its wings into the hotel business, auto rentals, and now even professional sports, with the San
Authentic Thai rattan chairs (shown in the photo) are delivered to Gary Schwartz’s chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without safety stock, is 200
Jantel Mitchell’s bakery prepares all its cakes between 4 a.m. and 6 a.m. so they will be fresh when customers arrive. Dayold cakes are virtually always sold, but at a 50% discount off the regular
Cherylene Brown has asked you to help her determine the best ordering policy for a new product. The demand for the new product has been forecasted to be about 1,000 units annually. To help you get a
Phillip Flamm’s Computer Store in Texas sells a printer for $200. Demand is constant during the year, and annual demand is forecasted to be 600 units. Holding cost is $20 per unit per year, whereas
The catering manager of La Vista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet for 500
Jordin Henry’s machine shop uses 2,500 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets:a)
Meena Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Meena is $400. Carrying cost is estimated to be 20% of the unit cost, and the
The production planning period for flat-screen monitors at Louisiana’s Rao Electronics, Inc., is 4 months. Cost data are as follows:For each of the next 4 months, capacity and demand for flatscreen
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:Yu decides that the initial
A large St. Louis feed mill, Robert Orwig Processing, prepares its 6-month aggregate plan by forecasting demand for 50-pound bags of cattle feed as follows: January, 1,000 bags; February, 1,200;
The Tamara Walker Chemical Supply Company manufactures and packages expensive vials of mercury. Given the following demand, supply, cost, and inventory data, allocate production capacity to meet
Based on the data in Figure 14.13, complete a net material requirements schedule using lot-for-lot for:a) All items (7 schedules in all), assuming the requirement for A is 1.b) All 7 items, assuming
Refer again to Problems 14.5. In addition to 100 units of S, there is also a demand for 20 units of U, which is a component of S. The 20 units of U are needed for maintenance purposes. These
Southeastern Airlines’ daily flight from Atlanta to Charlotte uses a Boeing 737, with all-coach seating for 120 people. In the past, the airline has priced every seat at $140 for the oneway flight.
In 2021, George Wright started the Old Oregon Wood Store to manufacture Old Oregon tables. Each table is carefully constructed by hand using the highest-quality oak. Old Oregon tables can support
Using the information in Problem 14.20, construct a net material requirements plan. There are 2 Alphas on hand and 4 Ds.Data from Problem 14.20You need to schedule 10 units of product Alpha for
Use the Web or other sources to identify what an ERP vendor (SAP, PeopleSoft/Oracle, American Software, etc.) includes in these software features:a) Customer relationship management.b) Supply chain
The following jobs are waiting to be processed at Rick Solano’s machine center. Solano’s machine center has a relatively long backlog and sets a fresh schedule every 2 weeks, which does not
Carlita Garcia’s company wishes to assign a set of jobs to a set of machines. The following table provides data as to the cost of each job when performed on a specific machine.a) Determine the
The Winter Green, Nevada, Fire Department has a full-time staff of six highly trained firefighters and EMTs: Judith Greene, Kyan Browne, Mekell White, Carlos Black, Jorge Blue, and Mimi Gray. Chief
Juanita Flores schedules volunteers (Denzel, Ronnell, Rosanne, Napoleon, Barry, and Rosemary) at the Pueblo, Colorado, Free Food Pantry, which is open from 5 to 9 p.m., 7 days a week. She wants a
What is JIT?
How can a manager evaluate the effectiveness of the maintenance function?
How do your answers to Problems 16.8 provide insight into a collaborative purchasing strategy?Data from problem 16.8Discount-Mart, a major East Coast retailer, wants to determine the economic order
Why is activity-based costing important to Lean management?
Dr. Che Mahmood took 563 minutes to complete a hospital’s first cornea transplant, and the hospital uses a 90% learning rate. How long shoulda) The third transplant take?b) The sixth transplant
Using the data from Problem E.14, how long will it take to complete the 12th plane? The 15th plane? How long will it take to complete planes 12 through 15 inclusive? At $40 per hour, what can Alwan,
For the ‘Change’ column (E) in Figure G.5:a) Determine the upper and lower limits for a 3-standarddeviation accuracy check.b) Which, if any, values fall outside the limits computed in part (a)?
“What are you people doing?” exclaimed an exacerbated CEO Dawn Jacobs as she stormed into the production meeting. “Wage costs were nearly $12,000 over budget last month, and defect numbers are
For the ‘RejShip’ column (I) in Figure G.5:a) Determine the upper and lower limits for a 3-standarddeviation accuracy check.b) Which, if any, values fall outside the limits computed in part (a)?
Using Figure G.2, analytics manager Vicky Luo wishes to set up Conditional Formatting in Excel to ensure that all the suppliers have different supplier numbers in column B. Which Conditional
Using Figure G.2, enter $6,000 into cell E8. In that spreadsheet, any new supplier (with a ‘Y’ in column J) should have its total purchases in column D equal to its change from the previous month
Consider Example G1. Think of three additional items for which the manager might want to check to ensure that the data are clean.Example G1 A B 1 Thompson Industries Monthly Supplier Report -
Using the data in Figure G.8(b), supply chain manager Jon Jackson wishes to use Excel’s Conditional Formatting to highlight any entries in column B that are at least as large as this year’s
Given the crossover mileage in Problem $5.5, what is the crossover point in years?Data from problem S5.5What is the crossover point in miles between the hybrid vehicle in Problem $5.4 and this
Green Forever (Problem $5.12) has decided to add an automatic string feeder system with cost and revenue estimates as shown below to the GF Deluxe model.a) What is the new revenue retrieval value for
Jenna Baker, CEO of Baker Mfg. Inc., wishes to compare her company’s inventory turnover (see Table 11.9) to that of industry leaders, who have turnover of about 13 times per year and 8% of their
Darden Restaurants, owner of popular brands such as Olive Garden, Bahama Breeze, Seasons 52, and LongHorn Steakhouse, requires unique supply chains to serve hundreds of millions of meals annually.
Dara Jones, operations manager of Arrow Distributing Corp. (see Table 11.9), likes to track inventory by using weeks of supply as well as by inventory turnover.a) What is Arrow’s weeks of supply?b)
The grocery industry has an annual inventory turnover of about 14 times. Organic Grocers, Inc. had a cost of goods sold last year of $10.5 million; its average inventory was $1.0 million. What was
York Technologies makes Aircraft Navigation Systems. The plant manager Murat Kristal expects you, as the new OM analyst, to provide some insight for performance of the plant. High on his list is an
Since opening day, Arnold Palmer Hospital has experienced an explosive growth in demand for its services. One of only six hospitals in the U.S. to specialize in health care for women and children,
Distinguish between effective capacity and actual output.
The three-station work cell illustrated in Figure S7.7 has a product that must go through one of the two machines at station 1 (they are parallel) before proceeding to station 2.a) What is the
The three-station work cell at Pullman Mfg., Inc. is illustrated in Figure S7.8. It has two machines at station 1 in parallel (i.e., the product needs to go through only one of the two machines
What are the techniques available to operations managers to deal with a bottleneck operation? Which of these does not decrease throughput time?
Achonwa Cutting is opening a new line of scissors for supermarket distribution. It estimates its fixed cost to be $500.00 and its variable cost to be $0.50 per unit. Selling price is expected to
Cortez Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and
You are given the data in Problem S7.28:a) What is the break-even point in dollars for proposal X?b) What is the break-even point in dollars for proposal Y?Data from problem 28Wolfgang Kersten Mfg.
As a prospective owner of a club known as the Red Rose, you are interested in determining the sales dollars necessary for the coming month to reach the break-even point. You have decided to break
Wolfgang Kersten Mfg. intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal X are $150,000, and for proposal Y,
Given the data in Problem S7.17, at what volume (units) of output would the two alternatives yield the same profit?Data from problem S7.17Cortez Manufacturing intends to increase capacity by
Given the data in Problem S7.28, at what volume (units) of output would the two alternatives yield the same profit (loss)?Data from problem 28Wolfgang Kersten Mfg. intends to increase capacity
Use the same data in Problem S7.28:a) If the expected volume is 28,500 units, which alternative should be chosen?b) If the expected volume is 15,000 units, which alternative should be chosen?Data
Evaluate the following capital investments according to net present value. Each alternative requires an initial investment of $20,000. Assume a 10% discount rate. Which is the preferred investment?
Kurt Hozak, VP of Operations at Monterrey Manufacturing, has to make a decision between two investment alternatives. Investment A has an initial cost of $61,000, and investment B has an initial cost
Tony and Steve are considering whether to purchase a new “bending brake.” This machine puts precise bends in a material used in their vinyl siding business. The machine will cost $70,000. Tony
Justin Bateh is considering a new machine for his shop. The machine is expected to generate receipts as follows: $50,000 in year 1, $30,000 in year 2, nothing in the next year, and $20,000 in year 4.
Jasmine Dantas’ Bed and Breakfast, in a small historic Mississippi town, must decide how to subdivide (remodel) the large old home that will become its inn. There are three alternatives: Option A
Like most manufacturers, Nautique Boat Company, the premier manufacturer of ski boats, wakeboard boats, and wake surfing boats, finds that it spends most of its revenue on purchased items. This is
What is the difference between “unique-event” risk and “super-event” risk?
Cheryl Druehl needs to purchase a new milling machine. She is considering two different competing machines. Milling Machine A will cost $300,000 and will return $80,000 per year for 6 years, with no
Consider a three-firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer’s demand over an 8-week period was 100 units each of the first 2 weeks, 200 units each of the
Amy Zeng, owner of Zeng’s Restaurant Distributions, supplies nonperishable goods to restaurants around the metro area. She stores all the goods in a storage area with a single dock and one aisle.
Peter Bell of Bell Electronics maintains an extensive stock of computer components for the consumer market. He has hundreds of drawers/cabinets for the many small parts (mother boards, graphic cards,
The Director of Supply Chain Relations at Long Beach Retailers wants you to evaluate two vendors, Classic Ladies Ware (L) and International Fashions (I). She suggests the weights be: Products 0.35,
The supply chain manager for Keskin Industries, Sean Willems, has developed the data shown in Table S11.3 for two vendors. Based on the weights and rankings shown, which is the preferred vendor?
As purchasing agent for Eynan Enterprises in Richmond, Virginia, you ask your buyer Aldis Jakubovskis to provide you with a ranking of “excellent,” “good,” “fair,” or “poor” for a
Wharton Manufacturing Company operates its 23 large and expensive grinding and lathe machines from 7 a.m. to 11 p.m., 7 days a week. For the past year, the firm has been under contract with Simkin
Maria Sanchez owns a health and fitness center called Bulk-Up in Harrisburg. She is considering adding more floor space to meet increasing demand. She will add either no floor space (N), a moderate
Chris Suit is an administrator for Lowell Hospital. She is trying to determine whether to build a large wing on the existing hospital, a small wing, or no wing at all. If the population of Lowell
Tom Thompson, a robust 50-year-old executive living in the northern suburbs of St. Paul, has been diagnosed by a University of Minnesota internist as having a decaying liver. Although he is otherwise
Cheryl Drummond Retailers, Inc., must decide whether to build a small or a large facility at a new location in Fairfax. Demand at the location will either be low or high, with probabilities 0.4 and
What is a decision tree?

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