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business
operations management

Questions and Answers of Operations Management

The Pet Training Academy offers a 5-day training program for troubled dogs. As seen in Table 11.5, the training process requires 5 days, beginning with the dog's arrival at 8 a.m. on day 1 and
Figure 11.32 shows a partially completed MPS record for 2-inch pneumatic control valves. Suppose that you receive the following orders at right for the valves (shown in the order of their arrival).
Consider a hospital that specializes in treating patients with cardiac problems. The surgery team is facing delays due to missing items before an operation. How can the principles of MRP and BOR be
Joeblog imports spectrometers for forensic laboratories and educational institutions. The item's demand forecasts for the next 6 weeks are 25 units, followed by forecasts of 20 units for weeks 7
A brick seller's demand forecasts for the next 10 weeks are 25, 25, 25, 25, 20, 30, 30, 30, 25, and 30 units. The current on-hand inventory is 110 units. The order policy is to produce in lots of 70.
The forecasted requirements for a new variety of bread with a longer shelf-life for the next 6 weeks are 10, 35, 5, 15, 45, and 25 units. The marketing department has booked orders totaling 8, 40, 5,
Olympic Enterprises plans to assemble a new breed of mountain bikes as per the bill of materials (BOM) in Figure 11.33.a. Which component has more than one parent?b. How many unique components does
A partially completed inventory record for the motor subassembly is shown in Figure 11.39.a. Complete the last three rows of the record by using the L4L rule.b. Complete the last three rows of the
Draw the BOM for an object that you use daily. For example, the BOM for your laptop.
The BOM for product A is shown in Figure 11.40, and data from the inventory records are shown in Table 11.9. In the MPS for product A, the MPS start row has 100 units in week 3 and 200 in week 6.
The BOMs for products A & B and data from the inventory records are shown in Figure 11.41. Data from the inventory records are shown in Table 11.10. In the MPS for product A, the MPS start row has 85
The following information is available for three MPS items:Develop the material requirements plan for the next 6 weeks for items D, E, and F. The BOMs are shown in Figure 11.43, and data from the
The bill of materials and the data from the inventory records for product A are shown in Figure 11.46.Assume that the MPS start quantities for A are 100 units in weeks 1, 2, 3, 4, 7, 8, 9, and
A firm's cost of goods sold last year was $3,410,000, and the firm operates 52 weeks per year.It carries seven items in inventory: three raw materials, two work-in-process items, and two finished
Crayola, LLC, is a profitable, wholly owned subsidiary of Hallmark Cards of Kansas City, Missouri. The company's world headquarters are located in Easton, Pennsylvania; departments there include
"Organizations don't compete but supply chains do." Explain how taking a supply chain approach can make a firm cost effective and improve performance at the same time.
Busy Bee Limited, an e-commerce retailer specializing in household decorative items, ended the year with annual sales (at cost) of £3 million. During the year, the inventory of decorative items
The following data were collected for a retailer:Assuming 52 business weeks per year, express total inventory asa. Weeks of supplyb. Inventory turns Cost of goods sold Gross profit Operating
Raj Cycles Limited is a leading bespoke cycle retailer and it operates throughout the year. The cost of goods sold last year was £835,000. The firm modifies eight items to customize cycles as per
Rain Shower is an international supplier of umbrellas. Currently, the company uses a logistical provider to provide warehouse services and handle packages destined for ground delivery. The contract
At the Pinnacle Enterprise, a UK-based consulting firm, management was discussing the potential of outsourcing the process of handling customer calls and complaints to Relax, an international
The R.U. Reddie Corporation, located in Chicago, manufactures clothing specially designed for stuffed cartoon animals such as Snoopy and Wile E. Coyote.Among the popular products are a wedding tuxedo
A food processing firm makes chocolates by growing its own cocoa. The firm is considering contract farming to outsource the production of cocoa to a dedicated farming company. Currently, the annual
As the world's largest automotive company and fourth-largest tire manufacturer, Continental's global business operations cover a diverse set of enterprises.Perhaps best known for its passenger and
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
The Cranston Telephone Company employs workers who lay telephone cables and perform various other construction tasks. The company prides itself on good service and strives to complete all service
The Food Bin grocery store operates 24 hours per day, 7 days per week. Fred Bulger, the store manager, has been analyzing the efficiency and productivity of store operations recently. Bulger decided
Wolverine, Inc. is a medium-sized firm employing 900 persons and 125 managerial and administrative personnel. The firm produces a line of automotive electrical components. It supplies about 95 auto
Greenstreets Recycling, Inc., collects used motor oil from several collection sites around the Greater Stanford area. To minimize the use, and thereby the cost, of its labor, vehicle, and energy
A television manufacturer in Seoul plans to export television sets to India through either Chennai or Visakhapatnam ports. It has distribution centers in Bhopal, Mumbai, and Hyderabad and will ship
Golf Bar wants to open a new indoor golf center for the busy working professionals of London Borough. It, however, has only enough capital to build one facility. Golf Bar wants it to be centered by
Thiru is a coconut oil extraction company based in Chennai, India. Management is considering four locations for a new plant: Trichy, Villupuram, Thiruvannamalai, and Nagapattinam. Annual fixed costs
Wiebe Trucking, Inc., is planning a new warehouse to serve the western United States. Denver, Santa Fe, and Salt Lake City are under consideration. For each location, annual fixed costs (rent,
Green Paper Recycling manufactures paper plates and cups from recycled paper and cardboard. The company has narrowed its potential choices for its new manufacturing facility to four cities in France.
Balaji Limited manufactures and markets spare parts for agricultural machineries, which it stocks in various warehouses throughout the country. Most of the machineries it supports are reaching the
Calculate the weighted score for each location (A, B, C, and D) shown in Table 13.6. Which location would you recommend? Location Factor 1. Labor climate 2. Quality of life 3. Transportation
Wang Lei and Li Mei Cai are newlyweds trying to decide among several available rentals. Alternatives were scored on a scale of 1 to 5 (5 = best) against weighted performance criteria, as shown in
Eagle Electric Repair is a repair facility for several major electric appliance manufacturers.Eagle wants to find a low-cost supplier for an electric relay switch used in many appliances.The annual
Suppose you are a retailer of fashion apparel meant for young professionals working in London. To keep costs down, you design the apparel in London and get it manufactured in Bangladesh and buy in
Cleveland Clinic, a nonprofit multispecialty medical center based in Cleveland, Ohio, has a vast operational footprint that spans the globe. With an annual operating budget of nearly $11 billion, its
John Wolf, president of Wolf Motors, just returned to his office after visiting the company's newly acquired automotive dealership. It was the fourth Wolf Motors dealership in a network that served a
Eagle Electric Repair wants to select a supplier based on total annual cost, consistent quality, and delivery speed. The following table shows the weights management assigned to each criterion (total
Schneider Logistics Company has built a new warehouse in Columbus, Ohio, to facilitate the consolidation of freight shipments to customers in the region. George Schneider must determine how many
The inclusion of a disruptive technology in a firm's supply chain puts pressure on supply chain integration and has implications for how the four core processes are managed. Explain how blockchains
A dairy farmer has a daily milk run from his farm to various schools in the locality and then a return journey to the farm with empty bottles from a previous delivery. The distances in kilometers
When Gary Erickson started out on one of his typical long-distance bike treks in 1990, he expected to have a great ride. What he did not expect was to come home with the idea for a sports nutrition
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)?

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