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operations management
Operations Management 5th Edition Nigel Slack, Stuart Chambers, Robert Johnston - Solutions
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 costs $850,000 in annual fixed charges, which covers the provider’s overhead and warehouse costs,
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 provider of call center services. Having a team of call center agents was an expensive activity especially
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 fixed cost for the firm amounts to £750,000, which includes investments in land, agricultural
The new Health-Watch facility is targeted to serve seven census tracts in Erie, Pennsylvania, whose latitudes and longitudes are shown in Table 13.1, along with the population in each census tract (in thousands). Customers will travel from the seven census-tract centers to the new facility when
The following coordinates are the locations of different warehouse facilities of an e-commerce retailer: (15,15), (40,5), and (40,50). The coordinates are in kilometers.a. Calculate the Euclidean distances (in kilometers) between each of the three pairs of facilities.b. Calculate these distances
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 light truck tires, this sector of the Hanover, Germany–based company’s total tire activities
The operations manager for Mile-High Lemonade narrowed the search for a new facility location to seven communities. Annual fixed costs (land, property taxes, insurance, equipment, and buildings) and variable costs (labor, materials, transportation, and variable overhead) are shown in Table 13.2.a.
London, New York, Tokyo, Singapore, and Shanghai are some of the world’s largest cities. Discuss from a logistical perspective the reason behind the success of these cities?
The Arid Company makes canoe paddles to serve distribution centers in Worchester, Rochester, and Dorchester from existing plants in Battle Creek and Cherry Creek. Arid is considering locating a plant near the headwaters of Dee Creek. Annual capacity for each plant is shown in the right-hand column,
An electronics manufacturer must expand by building a second facility. The search is narrowed to four locations, all of which are acceptable to management in terms of dominant factors. Assessment of these sites in terms of seven location factors is shown in Table 13.3. For example, location A has a
A milk processing factory is investigating which locations would best position its new plant relative to three important retail customers (located in cities A, B, and C). As shown in the table, all three customers require multiple daily deliveries. Management limited the search for this plant to
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 to them from whichever city is chosen as the port of entry. TV sets are transported to the
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 population, as determined by the center-of-gravity method. The following information is
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 and variable costs per ton are shown in the below table.a. Plot the total cost curves for all the
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. Management has gathered the following information about the manufacturing and shipping costs of
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 end of their warranty periods and the company is expecting an increase in demand for spare parts. Its
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 Table 13.7. The criteria included rent, proximity to work and recreational opportunities, security, and
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 mission integrates clinical and hospital care with academic and education excellence. The Clinic
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 metropolitan area of 400,000 people. Beyond the metropolitan area, but within a 45-minute drive,
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 requirements for the relay switch (D) are 100,000 units. Eagle operates 250 days a year. The
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 large quantities. By the time, the manufactured clothes reach the shop floor, fashion trends change
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 of 100 points) and the scores assigned to each supplier (Excellent = 5, Poor = 1).Which supplier
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 work and how they may affect the competitive priorities for a firm in light of the core processes.
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 teams of dock workers he should hire to handle the cross-docking operations and the other warehouse
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 resources, the company is interested in locating the shortest route that will allow its collection
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 standard pallet. A complete pallet ships as freight class classification 92.5. Use Table 15.2 to
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 realized that it could reduce the weight of its shipment to 2,500 pounds and bring down its freight
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 of an online quiz that is open to all users of JustFab. This enables JustFab to design and
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 concentrated soap that can be diluted at the place of consumption. Currently the liquid detergents are
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 product line, the owner wants reasonable assurance of success. Variable costs are estimated at $7
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 (best), are shown in the following table. The Herron managers give equal weights to the performance
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 last-minute, impulse purchases. Advance sales are so small that Weiss has no way to estimate the
A photographer takes passport pictures at an average rate of 20 pictures per hour. The photographer must wait until the customer smiles, so the time to take a picture is exponentially distributed. Customers arrive at a Poisson-distributed average rate of 19 customers per hour.a. What is the
Two nurses at Northwood Hospital’s Cardiac Care Unit are assigned to care for eight patients. Nurses are responsible for administering medication, taking vital signs, and responding to frequent calls for assistance that can come either from the patient or from the equipment monitoring the
Peachy Keen, Inc., makes mohair sweaters, blouses with Peter Pan collars, pedal pushers, poodle skirts, and other popular clothing styles of the 1950s. The average demand for mohair sweaters is 100 per week. Peachy’s production facility has the capacity to sew 400 sweaters per week. Setup cost is
The Nutmeg Corporation produces three different products, each in a 1-pound can: Almond-Lovers Mix, Walnut-Lovers Mix, and the Thrifty Mix.Three types of nuts are used in Nutmeg’s products: almonds, walnuts, and peanuts. Nutmeg currently has 350 pounds of almonds, 150 pounds of walnuts, and 1,000
A problem often of concern to managers in processing industries is blending. The Nutmeg Corporation, from Problem 15, is considering a new product it intends to sell to active and health-concerned adults. This new product will be a 4-ounce package of nuts that conforms to specific heath
Continuing Problem 2, now assume that Carlton is permitted to employ some uncertified, part-time instructors, provided they represent no more than 15 percent of the total workforce hours (regular, overtime, and part time) in any quarter. Each part-time instructor can work up to 240 hours per
Revisit Example 10.3, in which the consulting company has five jobs in its backlog. Data from Example 10.3:Create a schedule using the EDD rule, calculating the average days past due and flow time. In this case, does EDD outperform the FCFS rule? EXAMPLE 10.3 Using Priority Sequencing
A shipyard services ships and makes it seaworthy as per the regulations. Management schedules overtime during periods of high demand to reduce backlog. The following ships need to be scheduled for servicing:The due dates reflect the need for the ship to be ready for its next operation at sea.a.
The MPS start quantities for product A calls for the assembly department to begin final assembly according to the following schedule: 100 units in week 2; 200 units in week 4; 120 units in week 6; 180 units in week 7; and 60 units in week 8. Develop a material requirements plan for the next 8 weeks
Currently a company that designs online instructional courses has five customers in its backlog. The day when the order arrived, processing time, and promised due dates are given in the following table. The customers are listed in the order of when they arrived. They are ready to be scheduled
Zenith Printers specializes in printing wedding cards, business cards, corporate brochures, and marketing leaflets. The company serves a wide range of commercial and noncommercial clients. Due to the closure of its competitor’s store, Zenith is flooded with new orders. The shop still has five
Founded in 1921 by four physicians with a mission to provide better care for the sick, investigate patient problems, and further educate those who serve, Cleveland Clinic is one of the world’s most respected healthcare organizations, offering patients access to its world-renowned healthcare
The order policy is to produce end item A in lots of 50 units. Using the data shown in Figure 11.24 and the FOQ lot-sizing rule, complete the projected on-hand inventory and MPS quantity rows. Then, complete the MPS start row by offsetting the MPS quantities for the final assembly lead time.
Gömböc shapes are interesting mathematical shapes attracting attention from mathematics enthusiasts. These blocks involve a complex manufacturing and molding process. A manufacturer is evaluating three machines that can be used for producing these shapes. The annual capital and variable costs
What improvement can you make in the process shown in Figure 2.17?Data from Figure 2.17: Process: Subject: Beginning: Ending: Step No. 6719GAWN1 2 3 4 5 8 10 11 18922 Changing engine oil Mechanic Direct customer arrival Total charges, receive payment Insert Step Append Step Remove
A new optical reader for scanning documents is being considered by a retail bank. The new system has a fixed cost of €30,000 per year and a variable cost of €2.5 per batch. The cost of the new scanner is €100,000. The bank charges €10 per batch for scanning documents and it believes that
Security devices are becoming increasingly high-tech. Most offices and similar buildings have simple security devices such as ‘swipe cards’ that admit only authorized people to the premises. Other technologies are becoming more common (although perhaps more in movies than in reality) such as
Towards the end of the 1990s, much of the European retail banking industry was facing unprecedented levels of competition.This was partly the result of excess capacity (many towns had four or more bank branches within 100 metres of each other) and partly triggered by the presence of aggressive new
How would you evaluate the design of this book?
Look back at the worked example on page 131 which described the component structure and process for a new healthcare service.(a) Try to write down a statement which encapsulates the ‘concept’ of this new service (not the ‘idea’ that was described in the example). The ‘concept’ should be
Chatsworth House, the home of the 12th Duke and Duchess of Devonshire, is one of the finest and most palatial houses in the UK, set in over 1000 acres of parkland in the Peak District National Park, England. The original house was built over 400 years ago and rebuilt starting in the seventeenth
Re-examine the worked example that describes the new service being offered by the Activo Health Club and draw a quality function deployment (house of quality) diagram that links what the health club is trying to achieve with how the design tries to achieve this.
One product where a very wide range of product types is valued by customers is domestic paint. Most people like to express their creativity in the choice of paints and other home-decorating products. Clearly, offering a wide range of paint must have serious cost implications for the companies which
A company is developing a new website that will allow customers to track the progress of their orders. The web site developers charge €10,000 for every development week and it is estimated that the design will take ten weeks from the start of the design project to the launch of the website. Once
Design becomes particularly important at the interface between products or services and the people who use them. This is especially true for internet-based services. Consider two types of website:(a) Those which are trying to sell something such as Amazon.com, and(b) Those which are primarily
How can the concept of modularization be applied to package holidays sold through an on-line travel agent?
Visit the website of the UK's Design Council (www.design-council.org.uk). There you will find examples of how design has provided innovation in many fields. Look through these examples and find one which you think represents excellence in design and one which you don't like (for example, because it
Visit the websites of companies that are in the paper manufacturing/pulp production/packaging industries. Assess the extent to which the companies you have investigated are vertically integrated in the paper supply chain that stretches from foresting through to the production of packaging materials.
A company which assembles garden furniture obtains its components from three suppliers. Supplier A provides all the boxes and packaging material; supplier B provides all metal components; and supplier C provides all plastic components. Supplier A sends one truck load of the materials per week to
'I really can't decide whether it is worth moving from our current location. The lease still has many years to run, so staying where we are is a very real option. The last site that the agents offered us was better than the one we are in at the moment, but not so much better that it was worth the
Visit sites on the internet that offer (legal) downloadable music using MP3 or other compression formats. Consider the music business supply chain, (a) For the recordings of a well-known popular music artist and (b) For a less well-known (or even largely unknown) artist struggling to gain
Draw the component structure and process chart for a visit to the hairdressers.
How can the design of quick-service restaurant (fast-food) products and services be improved from the point of view of environmental sustainability? Visit two or three fast-food outlets and compare their approach to environmentally sensitive designs.
A company is deciding between two locations (Location A and Location B). It has six location criteria, the most important being the suitability of the buildings that are available in each location. About half as important as the suitability of the buildings are the access to the site and the supply
DSF is a small but technically successful company in the man-made fibre industry. The company is heavily dependent on the sales of Britlene, a product it developed itself, which accounted in 1996 for 95 per cent of total sales.Britlene is used mainly in heavy-duty clothing, although small
Revisit the short case on how locations in developing nations are challenging the dominance of more traditional Western locations for high-tech research and manufacturing, most notably Silicon Valley (page 160). The two examples in the short case are Bangalore in India and Shanghai in China. The
A rapid-response maintenance company serves its customers who are located on four industrial estates. Estate A has 15 customers and is located at grid reference (5,7). Estate B has 20 customers and is located at grid reference (6,3). Estate C has 15 customers and is located at grid reference (10,2)
Tesco.com is now the world's largest and by far the most profitable online grocery retailer. In 1996 Tesco.com was alone in developing a 'store-based' supply network strategy which entailed using its existing stores to assemble customer orders which were placed on-line. Tesco staff would simply be
An analytical laboratory has current revenues of £300,000 and its sales forecasts indicate that business is likely to grow by £100,000 per year for the next eight years. The laboratory's costs are stable at 60 per cent of its revenue and are likely to remain so. The optimum capacity level for a
Weldon Hand Tools, one of the most successful of the European hand tool manufacturers, decided to move into the 'woodworking' tools market. Previously its products had been confined to car maintenance, home decorating and general hand tools. One of the first products which it decided to manufacture
A laboratory has six departments (A to F). Trays of samples move between the departments according to the information in Figure 7.27. This also indicates the space required by each department. Devise a layout for the laboratory that will fit into a convenient rectangular building and that minimizes
A private healthcare clinic has been offered a leasing deal where it could lease a CAT scanner at a fixed charge of €2000 per month and a charge of €6 per patient scanned. The clinic currently charges €10 per patient for taking a scan.(a) At what level of demand (in number of patients per
A printer is considering purchasing some new high-tech machines. These machines have a capacity of 6000 units per week, a fixed cost of €2000 per week, and a variable cost of €0.5 per unit. The revenue earned for every unit produced is €1.(a) Over what range or ranges of volume of output
Sketch the layout of your local shop, coffee bar or sports hall reception area. Observe the area and draw onto your sketch the movements of people through the area over a sufficient period of time to get more than 20 observations. Assess the flow in terms of volume, variety and type of layout.
Visit a supermarket and observe the people who staff the checkouts.(a) What kind of skills do people who do this job need to have?(b) How many customers per hour are they capable of ‘processing’?(c) What opportunities exist for job enrichment in this activity?(d) How would you ensure motivation
Step 1 - Make a sandwich, any type of sandwich, preferably one that you enjoy and document the tasks you have to perform in order to complete the job. Make sure you include all the activities, not forgetting the movement of materials (bread etc.) to and from the work surface.Step 2 - So impressed
A hotel has two wings, an east wing and a west wing. Each wing has four 'room service maids' working sevenhour shifts to service the rooms each day. The east wing has 40 standard rooms, 12 deluxe rooms and 5 suites. The west wing has 50 standard rooms and 10 deluxe rooms. The standard times for
A little-known department of your local government authority has the responsibility for keeping the area's public lavatories clean. It employs ten people who each have a number of public lavatories that they visit, clean and report any necessary repairs every day. Draw up a list of ideas for how
An operation assembling PCs receives components from its suppliers and assembles their products according to customer demand. Although there are many different combinations of components, and although the components are always changing as new updated versions are supplied, the company wants to
You are employed by a public relations company to text messages to selected clients. You are given a list of names and have to text the following message. 'Hi there . . . (insert name here) . . . did you know that operations management is just the greatest subject on earth!' Unfortunately, the
Air traffic controllers have one of the most stressful jobs in the world. They are responsible for the lives of thousands of passengers who fly in and out of the world's airports every day. Over the last 15 years, the number of planes in the sky has doubled, leading to congestion at many airports
Visit a dance club, bar or pub that has live music or any other similar entertainment venue.(a) How would you manage the environment to ensure the wellbeing and safety of staff?(b) How would you manage the environment to ensure the wellbeing and safety of customers?
A new machine requires an investment of €500,000 and will generate profits of €100,000 for ten years. Will the investment have a positive net present value assuming that a realistic interest is 6 per cent?
Step 1 – Make a list of all the jobs you have to do in the next week. Include in this list jobs relating to your work and/or study, jobs relating to your domestic life, in fact all the things you have to do.Step 2 – Prioritize all these jobs on a ‘most important’ to ‘least important’
Revisit ‘Operations in practice’ at the beginning of the chapter which explained how one car dealership planned and controlled its workshop activities. Try to visit a local car servicing operation and talk to them about their approach to planning and control (note – it may be less
A sandwich manufacturer must order the food materials that make up the sandwiches three days before they are needed by the factory. When these raw materials arrive, they are in stock for, on average, half a day before they are used. The throughput time for a batch of sandwiches is, on average, one
From your experience of making appointments at your general practitioner’s surgery, or by visiting whoever provides you with primary medical care, reflect on how patients are scheduled to see a doctor or nurse.(a) What do you think planning and control objectives are for a general
In 2003, Charles and Gillian Giles decided to open up their farm to the paying public, in response to diminishing profits from their milk and cereals activities. They invested all their savings in building a 40-space car park and an area with spaces for six 40-seater buses, a safe viewing area for
A specialist sandwich retailer must order sandwiches at least eight hours before they are delivered. When they arrive in the shop, they are immediately displayed in a temperature-controlled cabinet. The average time that the sandwiches spend in the cabinet is six hours. What is the P:D ratio for
Step 1 - Read the following descriptions of two cinemas.Kinepolis in Brussels is one of the largest cinema complexes in the world, with 28 screens, a total of 8,000 seats and four showings of each film every day. It is equipped with the latest projection technology (large screens, THX sound, Dolby
The Dagenham Chow-Mein Pizza Company has a demand forecast for the next 12 months which is shown in Table 11.5.The current workforce of 100 staff can produce 1000 cases of pizzas per month.(a) Prepare a production plan which keeps the output level. How much warehouse space would the company need
A specialist gourmet sandwich chain (similar to the Prêt A Manger organization described in Chapter 1) places orders for the bread and filling materials for its sandwiches the day before they are needed. These materials are delivered early the following day. The shop staff make the sandwiches
Look again at the principles which govern customers’ perceptions of the queuing experience. For the following operations, apply the principles to minimize the perceived negative effects of queuing:(a) A cinema.(b) A doctor’s surgery.(c) Waiting to board an aircraft.
Trans-European Plastics (TEP) is one of Europe's largest manufacturers of plastic household items. Its French factory makes a range of over 500 products that are sold to wholesalers and large retailers throughout Europe.The company despatches orders within 24 hours of receipt using an international
Consider how airlines cope with balancing capacity and demand. In particular, consider the role of yield management. Do this by visiting the website of a low-cost airline and for a number of flights price the fare being charged from tomorrow onwards. In other words, how much would it cost if you
A local government office issues hunting licences. Demand for these licences is relatively slow in the first part of the year but then increases after the middle of the year before slowing down again towards the end of the year. The department works a 220-day year on a five-days-a-week basis.
Calculate the OEE of the following facilities by investigating their use:(a) A lecture theatre.(b) A cinema.(c) A coffee machine.Discuss whether it is worth trying to increase the OEE of these facilities and, if it is, how you would go about it..
A field service organization repairs and maintains printing equipment for a large number of customers. It offers one level of service to all its customers and employs 30 staff. The operation’s marketing vice president has decided that in future the company will offer three standards of service:
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