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business
operations management

Questions and Answers of Operations Management

“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?
What is the expected value of perfect information (EVPI)?
Kalyan Singhal Corp. makes three products, and it has three machines available as resources as given in the following LP problem:a) Determine the optimal solution using LP software.b) Is there unused
Aretha’s Bicycle Company (ABC) has the hottest new product on the upscale toy market—boys’ and girls’ bikes in bright fashion colors, with oversize hubs and axles; shell design safety tires;
Solve the following LP problem graphically. Indicate the corner points on your graph. Maximize profit = $3X₁ + $5X₂ Subject to : X₂ ≤6 3X1 + 2X₂ ≤18 X₁, X₂ ≥ 0
Gupta Furniture manufactures two different types of china cabinets, a French provincial model and a Danish modern model. Each cabinet produced must go through three departments: carpentry, painting,
Solve the following LP problem graphically: Maximize Z = 4X₁ + 4X₂ Subject to: 3X₁ + 5X₂ ≤ 150 X₁ - 2X₂ ≤ 10 5X₁ + 3X₂ ≤ 150
Solve the following linear programming problem graphically: Maximize Z = 3X + 5Y Subject to: 4X +4Y < 48 1X + 2Y ≤ 20 ΥΣ 2 X, Y ≥ 0
Solve the following LP problem graphically: Maximize profit Subject to: X + 10Y 4X+3Y 36 2X +4Y 40 ΥΣ 3
The Christina Alvarez Company manufactures two lines of designer yard gates, called model A and model B. Every gate requires blending a certain amount of steel and zinc; the company has available a
Good airline scheduling is essential to delivering outstanding customer service with high plane utilization rates. Airlines must schedule pilots, flight attendants, aircraft, baggage handlers,
Explain sustainability.
Solve the following LP problem graphically: Minimize cost = 4X₁ +5X₂ Subject to: X₁ + 2X₂ ≥ 80 3X₁ + X₂ 275 X₁, X₂ ≥ 0
Consider Paulina Jordan’s following LP formulation:a) Graphically illustrate the feasible region to indicate to Paulina which corner point produces the optimal solution.b) What is the cost of this
Solve the following LP problem graphically: Minimize cost Subject to: 24X + 15Y 7X + 11Y 277 16X + 4Y ≥ 80 X, Y Z 0
Kaleena Turner Food Processors wishes to introduce a new brand of dog biscuits composed of chicken- and liverflavored biscuits that meet certain nutritional requirements. The liver-flavored biscuits
Using the data from Problem C.10 and the unit production costs in the following table, show which locations yield the lowest cost.Data from problem C.10Dana Johnson Corp. is considering adding a
Celebrity Cruises, with its reputation as a leader in the “premium cruise” industry, decided in 2013 to become an industry leader in environmental sustainability as well. Celebrity’s “Save
Discuss the circular economy.
Explain closed-loop supply chains.
Environmentally conscious Susan has been told that a new electric car will only generate 6 ounces of greenhouse gases (GHGs) per mile, but that a standard internal combustion car is double that at 12
A Southern Georgia school district is considering ordering 53 propane-fueled school buses. “They’re healthier, they’re cleaner burning, and they’re much quieter than the diesel option,”
Hartley Auto Supply delivers parts to area auto service centers and is replacing its fleet of delivery vehicles. What is the total vehicle life cycle cost of this gasoline engine truck given the
Green Forever, a manufacturer of lawn equipment, has preliminary drawings for two grass trimmer designs. Charla Fraley’s job is to determine which is better environmentally. Specifically, she is to
Given the data in Problem S5.15 and an alternative hybrid vehicle with the specifications shown below:a) What is the crossover point in miles?b) Which vehicle is has the lowest cost until the
What is efficiency?
Aliyah White’s political campaign must coordinate a number of necessary activities to be prepared for an upcoming election. The following table describes the relationships between these activities
Given the following data, develop a demand forecast for period 7 using a 4-period weighted moving average, with weights of .1, .2, .3, and .4, where .4 is used for the most recent week.
Nautique Boat Company, headquartered near the Orlando International Airport in Florida, is the world’s premier manufacturer of luxury ski boats, wakeboarding boats, and wake-surfing boats. With a
Darden Restaurants, owner of popular brands such as Olive Garden, Bahama Breeze, and Longhorn Grill, serves more than 320 million meals annually in more than 1,500 restaurants across the U.S. and
Based on the Ease of Doing Business rankings developed by the World Bank (www.doingbusiness.org/en/rankings), rank the following countries from the easiest to do business in to the most difficult:
Define strategy.
Prepare a process chart for a shoeshine.
The monthly sales for Yazici Batteries, Inc., were as follows:a) Plot the monthly sales data.b) Forecast January sales using each of the following:i) Naive method.ii) A 3-month moving average.iii) A
Sales of industrial vacuum cleaners at Jonquel Parker Supply Co. over the past 13 months are shown below:a) Using a moving average with three periods, determine the demand for vacuum cleaners for
Prepare a flowchart for the process at the local car wash.
Shanice Brown’s gaming software firm has developed the data for a new project, as given in the following table.a) What is the critical path? What is the expected completion time of the project?b)
Storrs Cycles has just started selling the new Cyclone mountain bike, with monthly sales as shown in the table. First, coowner Bob Day wants to forecast by exponential smoothing by initially setting
Prepare a fish-bone chart explaining how a pizza delivery can arrive late on a Friday or Saturday.
Coleman Rich Control Devices, Inc., produces custom-built relay devices for auto makers. The most recent project undertaken by Rich requires 14 different activities. Rich’s managers would like to
Using the 911 call data in Problem 4.31, forecast calls for weeks 1 through 7 with a trend-adjusted exponential smoothing model. Assume an initial forecast for 50 calls for week 1 and an initial
Given the following data, use exponential smoothing (α= 0.2) to develop a demand forecast. Assume the forecast for the initial period is 5. PERIOD DEMAND 1 7 2 9 3 5 4 9 5 13 1.0 6 8
Arike Ogwumike Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000, and for proposal B,
Emergency calls to the 911 system of Durham, North Carolina, for the past 6 weeks are shown in the following table:a) Compute the exponentially smoothed forecast of calls for each week. Assume an
Guadalupe Electric, Inc. must replace a robotic MIG welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $75,000 and a variable cost of $16, with a capacity of
Consider the data for a simple project at Carlos Lopez’s real estate development company, as given in the following table.a) Note that this project has only one path. What is the expected
Thamer Almutairi, owner of Almutairi’s Department Store, has used time-series extrapolation to forecast retail sales for the next 4 quarters. The sales estimates are $120,000, $140,000, $160,000,
Southwestern University (SWU), a large state college in Stephenville, Texas, enrolls close to 20,000 students. The school is a dominant force in the small city, with more students during fall and
The Rover 6 is a new custom-designed sports car. An analysis of the task of building the Rover 6 reveals the following list of relevant activities, their immediate predecessors, and their duration.a)
Janice Carrillo, a Gainesville, Florida, real estate developer, has devised a regression model to help determine residential housing prices in northeastern Florida. The model was developed using
A small software development project at Krishna Dhir’s firm has five major activities. The times are estimated and provided in the following table.a) Find the expected completion time for this
Prepare a time-function map for a shoeshine.
Prepare a service blueprint for the process at an automatic car wash.
Starting from humble beginnings in 2004, Shirin Shahsavand successfully built a mid-sized business assembling small electronic components in Cincinnati, Ohio. Her company, National Assembly Services,
In Myanmar (formerly Burma), 6 laborers, each making the equivalent of $6 per day, can produce 40 units per day. In rural China, 10 laborers, each making the equivalent of $4 per day, can produce 45

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