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Operations Management An Integrated Approach 7th Edition R. Dan Reid, Nada R. Sanders - Solutions
Which factor is most likely the best predictor of the health of a person?a) Level of preventative healthcare actionsb) Genetic codec) Zip coded) Waist size
Describe the data that is being used by CVS Health to forecast and to plan its strategy for the future.
CVS Health partnered with UPS to deliver prescriptions to your home using a drone. Which of the forecasting methods below would you recommend using to handle the demand for such a service?a) Executive opinionb) Linear trend linec) Delphi methodd) Linear regression
Lauren’s Beauty Boutique has experienced the following weekly sales:Forecast sales for week 6 using the naïve method, a simple average, and a three-period moving average. Week 1 2 3 4 5 Sales 420 382 425 465 395
1. How will you develop this forecasting process?2. Which methods will you use? What variables will be considered?3. Are there conditions under which the analytics models should be adjusted by your judgement?
The data analysis at CVS Health has resulted in an evolution of what the store has become and how it will be changing in the future.Describe the evolution of the store based on the changes referenced in the video.
Which type of forecasting model is the most complex to use?a) Seasonal indexesb) Trend-adjusted exponential smoothingc) Linear trend lined) Multiple regression
CVS Health partnered with UPS to deliver prescriptions to your home using a drone. Which types of forecasting method would you recommend using for planning to handle the demand for such a service and why?
If the data we are using in a time series analysis increases or decreases over time, which type of pattern is occurring?a) Level or horizontalb) Trendc) Seasonald) Cycle
In order to fulfill your graduation requirements for a bachelor’s degree, you must take one more course in communication. You have a choice of three courses to meet this requirement:WritingPublic SpeakingOrganization CommunicationsIt occurred to you that you could use factor rating for making
Which factor(s) have affected the types of facilities—and their locations—that this healthcare provider has opened in China?
Which factor has been most significant in affecting where this healthcare organization has chosen where to locate its facilities?a) Site considerationsb) Quality-of-life issuesc) Proximity to customersd) Proximity to source of labor
What are the ways that UHF measures its capacity? How have they been adding to their growth?
Which of the following methods enables managers to choose between capacity planning alternatives for sequential planning?a) Factor ratingb) Center of gravity approachc) Transportation methodd) Decision tree
Beth’s Bakery can comfortably produce 50 brownies in one day. If Beth takes some unusual measures, such as hiring her two aunts to help in the kitchen and work overtime, she can produce up to 100 brownies in one day.a) What are the design and effective capacities for Beth’s Bakery?b) If Beth is
In general, which method should be used for deciding where to locate facilities when the alternatives are not already selected in advance?
Which of the following procedures for evaluating location alternatives is the best choice for making a decision based on multiple characteristics of various levels of importance?a) Factor ratingb) Load-distance modelc) Center of gravity approachd) Decision tree
How would UHF use a decision tree to help make a decision about whether to build a small, medium, or large facility at a given location?
The design and effective capacities for a local paper manufacturer are 1300 and 800 pounds of paper per day, respectively. At present, the manufacturer is producing 700 pounds per day. Compute capacity utilization for both measures. What can you conclude?
The Steiner-Wallace Corporation has determined that it needs to expand in order to accommodate growing demand for its laptop computers. The decision has come down to either expanding now with a large facility, incurring additional costs and taking the risk that the demand will not materialize, or
Demand has grown at Dairy May Farms, and it is considering expanding. One option is to expand by purchasing a very large farm that will be able to meet expected future demand. Another option is to expand the current facility by a small amount now and take a wait-and-see attitude, with the
Jody of Jody’s Custom Tailoring is considering expanding her growing business. The question is whether to expand with a bigger facility than she needs or with a small facility, knowing that she will have to reconsider expanding in three years.Jody has estimated the following chances for
Which of the following is a possible disadvantage of a product layout?a) High unit costs of productionb) Increased movement of materialsc) Limited ability to specialize equipmentd) Inability to effectively handle disruptions to flow
1. What steps should Ms. Cook take to ensure efficient layout of her facility?2. Should she consider a drive-through pickup facility?3. What criteria should she consider in the layout of the kitchen and receiving dock/door?4. What other criteria should she consider that would impact her throughput
Discuss the differences between the “brand defining”store layout and the one shown in JCPenney about five years ago in the following article:https://www.businessinsider.com/photos-of-why-jcpenney-is-failing-2013-11
Which of the following is a potential disadvantage of a process layout?a) Difficult-to-manage complex flowsb) Higher capital costsc) Low product flexibilityd) Inability to effectively handle disruptions to flow
Evaluate the changes being tested in the “brand defining” store that are described in more detail in the following
Which of the following layouts is suitable for the intermittent manufacturing of similar products using the same production line?a) Cellularb) Productc) Processd) Fixed position
Gator Office Systems is comparing two layouts for the design of its office building. It has interviewed managers in order to develop the from–to matrix shown in Table 10-12. The two layouts considered are shown in Figure 10-14. Which layout do you think is better for Gator Office Systems, using
The ABC Corporation is designing its new assembly line. The line will produce 85 units per hour. The tasks, their times, and their immediate predecessors are shown in Table 10-19.a) Which task is the bottleneck?b) Compute the cycle time with a desired output of 85 units per hour.c) Use a cycle time
David’s Sport Supplies is a store that sells sports equipment and gear for teenagers and young adults. David’s is in the process of assigning the location of storage areas in its warehouse (Figure 10-16) to minimize the number of trips made to retrieve needed items. Given here in Table 10-14
Explain the reasons why the layout at JCPenney is considered a hybrid.
Which type of layout is commonly used by a retail store such as JCPenney’s?a) Processb) Productc) Hybridd) Fixed position
Which of the following procedures for evaluating location alternatives is the best choice for selecting sites based on evaluating distances to identify a new location not currently under consideration?a) Factor ratingb) Load-distance modelc) Center of gravity approachd) Transportation method
The following data are monthly sales of jeans at a local department store. The buyer would like to forecast sales of jeans for the next month, July.a) Forecast sales of jeans for March through June using the naïve method, a two-period moving average, and exponential smoothing with an α = 0.1.b)
What is your analysis of the retail store footprint in some detail based on what was presented toward the end of the video?
Which type of time series model is only good for a level pattern of data?a) Exponential smoothingb) Simple moving averagec) Naived) Weighted moving average
A manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. At the end of December, the company wishes to forecast sales for January. The estimate of trend through November has been 150 additional boards sold per month. Average sales
Rosa’s Italian restaurant wants to develop forecasts of daily demand for the next week. The restaurant is closed on Mondays and experiences a seasonal pattern for the other six days of the week. Mario, the manager, has collected information on the number of customers served each day for the past
Small Wonder, an amusement park, experiences seasonal attendance. It has collected two years of quarterly attendance data and made a forecast of annual attendance for the coming year. Compute the seasonal indexes for the four quarters and generate quarterly forecasts for the coming year, assuming
A company uses exponential smoothing with trend to forecast monthly sales of its product, which show a trend pattern. At the end of week 5, the company wants to forecast sales for week 6. The trend through week 4 has been 25 additional cases sold per week. Average sales have been 95 cases per week.
Given the following data, use exponential smoothing with α = 0.1 and α = 0.6 to generate forecasts for periods 2 through 6. Use MAD and MSE to decide which of the two models produced a better forecast. Period 1 2 3 4 5 6 Actual 14 16 16 11 12 17 Forecast 17
Joe’s Tasty Burger has determined that its production facility has a design capacity of 375 hamburgers per day. The effective capacity, however, is 275 hamburgers per day. Lately Joe has noticed that output has been 250 hamburgers per day. Compute both design and effective capacity utilization
Which factor is most significant affecting the need for growth of capacity in the healthcare industry?a) Changes in government regulationsb) Demographic changesc) Increase in incomed) A reduced focus on preventative healthcare
Which factors are causing the level of growth that UHFis planning for in China?
A company has used three different methods to forecast sales for the past five months. Use MAD and MSE to evaluate the performance of the three methods.a) Which forecasting method performed best? Do MAD and MSE give the same results?b) Which of these is actually the naïve method?
Shoeless Joe is a specialty retailer that is deciding where to locate a new facility. The annual fixed and variable costs for each possible site have been estimated as follows:If demand is expected to be 2,500 units, which location is best? Location A B C D Fixed
Jenny Chu can comfortably produce 3 specialty industrial signs in one month. Assume a 20-day work month. If Jenny brings on an apprentice from the design department of the local engineering college, she can produce 4 signs in one month.a) What are the design and effective capacities for Jenny
Raj Venkaraman is a specialty retailer and is deciding where to locate his new auto manufacturing plant. The annual fixed and variable costs for each possible site have been estimated as follows:If demand is expected to be 175,000 units, which location is best? Location A B с D Fixed
1. From the following “from-to” matrix and the layout, calculate the load–distance score. Next, using logic, propose a better layout and calculate the load–distance score of your proposed layout.The current load–distance score is ______________The proposed load–distance score is
Describe how JCPenney is utilizing their “brand defining”store.
Which of the following best describes the layout changes being tested at the “brand defining”store of JCPenney?a) They have used sophisticated software to design the layout of the test store.b) The floor plan design uses multiple types of design along with the added feature of
Fresh Foods Grocery is considering redoing its facility layout. The from–to matrix showing daily customer trips between departments is shown in Table 10-10, and their current layout is shown in Figure 10-12. Fresh Foods is considering exchanging the locations of the dry groceries department (A)
What was important to the customers in terms of store design?
Use the longest task time rule to balance the assembly line described in Table 10-21; the line can produce 50 units per hour.a) What is the cycle time?b) What is the theoretical minimum number of stations?c) Which work elements are assigned to which workstations?d) What are the resulting efficiency
Table 10-23 shows the tasks required to assemble an aluminum storm door and the length of time needed to complete each task.a) Calculate the cycle time needed to produce 320 doors in an eight-hour work day.b) What is the minimum number of workstations that can be used on the line and still achieve
Use the data from Problem 19 to rebalance the line with a cycle time of 75 seconds. How does the number of workstations change? What happens to the output and the line’s efficiency?Data from problem 19Table 10-23 shows the tasks required to assemble an aluminum storm door and the length of time
Select a job that you have experience with, such as cashier or restaurant server. Answer the following questions for that job.1. What job did you select?2. Define and/or map the key processes for that job (list tasks in sequence).3. Identify the specific skills needed in order to perform the
Why are companies investing in the ability to manufacture using microgravity?
Which type of work measurement technique would we need to currently use for manufacturing in space?a) Work samplingb) Predetermined time data approachc) Elemental time data approachd) Time study
Which people and organizations are investing in microgravity manufacturing and what are they focusing on making?
Which of the following is a limitation of using predetermined time data?a) The level of skill needed to accurately determine the difficulty of a work elementb) The need to disrupt the workplace to collect datac) We can’t calculate standard times before the job beginsd) The necessity of rating
1. How will you go about this assignment?2. What steps will you take to arrive at a numerical estimate of cost per delivery?3. What other factors should be considered in addition to those from the numerical computation?
In general, what are the advantages and disadvantages of work sampling?
Tameka has decided that the BackPack Company must have very good customer service. She has asked you to develop a level aggregate plan using inventories but not back orders. All demand must be met each period. You must:a) Calculate the aggregate production rate.b) Calculate the appropriate
Richard Haslett owns three bars in Santa Cruz located on the boardwalk. In September 1995, Richard hired Kelly Warton as the business manager to take care of accounting and inventory. Her salary is $40,000, which works out to about $20 per hour.After her first six months at work, Richard is
What are the steps for successfully managing inventory in retail?
Which inventory performance measure did they discuss regarding fast fashion retail?a) Inventory turnsb) Safety stock levelsc) Percentage on time in full of ordersd) Inventory backlog
Janice is in charge of scheduling the operating rooms (OR) at Community Hospital. Not all types of surgeries can be performed in the same operating room because of differing required equipment and environment. For example, cardiac surgeries must be performed in a sterile OR. Janice has collected
Zara was an example of a fast fashion retail that we should benchmark. After reading the following article, explain and analyze Zara’s approach to inventory management.https://wwd.com/business-news/business-features/l2-report-fast-fashion-success-zara-10725214/
Which of the following is an assumption made by the economic order quantity (EOQ) model?a) Backorders are permitted.b) Quantity discounts are considered.c) Lead times can be variable.d) Demand is known with certainty.
Yasuko’s Art Emporium (YAE) ships art from its studio located in the Far East to its distribution center located on the West Coast of the United States. YAE can send the art either via transoceanic ship freight service (20 days transit) or by air freight (3 days transit time). YAE ships 20,000
1. What will you do? What do you think is the root cause of non production?2. Offer suggestions on how you can rectify this issue.3. Identify some challenges of automatically relying on this algorithm.
Why is it beneficial to utilize software to manage inventory?
Although the BackPack Company has always used a level aggregate plan, Tameka is interested in evaluating chase aggregate plans also. She has asked you to calculate how many hires and fires would be necessary to adjust capacity to meet demand exactly each period. If necessary, incur some undertime.
Which of the following is an advantage of using a periodic review system as opposed to a continuous review system?a) Less inventory is needed to protect again stockouts.b) It has a smaller average inventory investment.c) It requires less work for managing inventory.d) It is a more effective method
Why does excess inventory occur in the retail industry and how do we address this issue?
Which method for ordering inventory should we use when the demand in the organization is lumpy?a) Economic order quantity (EOQ)b) Period-order quantityc) Lot-for-lotd) Min-max
Genuine Reproductions (GR) plans on increasing next year’s sales by 30 percent but expects to increase average inventory in dollars to $300,000.a) Calculate the expected inventory turnover for next year.b) Calculate the expected weeks of supply.
In general, which factors should we evaluate when deciding whether to use a continuous review system (CRS) or a periodic review system (PRS)?
Which type of inventory cost includes the interest paid on money borrowed?a) Item costb) Holding costc) Capital costd) Storage cost
Frederick’s Farm Factory (FFF) currently maintains an average inventory valued at $2,900,000. The company estimates its capital cost at 8 percent, its storage cost at 4 percent, and its risk cost at 3 percent.a) Calculate the annual holding cost rate for FFF.b) Calculate the total annual holding
A local nursery, Greens, uses 1780 bags of plant food annually. Greens works 50 weeks per year. It costs $12 to place an order for plant food. The annual holding cost rate is $6 per bag. Lead time is one week.a) Calculate the economic order quantity.b) Calculate the total annual costs.c) Determine
Tax Preparers, Inc. works 280 days per year. The company uses adding machine tape at a rate of six rolls per day. Usage is believed to be normally distributed with a standard deviation of three rolls during lead time. The cost of ordering the tape is $15, and holding costs are $0.25 per roll per
Healthy Plants Ltd. (HP) produces its premium plant food in 60-pound bags. Demand for the product is 150,000 pounds per week. HP operates 50 weeks per year and can produce 250,000 pounds per week. The setup cost is $200 and the annual holding cost rate is $0.55 per bag. Currently, HP produces its
If the cost of equipment is very expensive, which type of aggregate plan is the best choice (and is used by Airbus)?a) Levelb) Hybridc) Chased) More information is needed.
What did you glean from the video about how Airbus creates its aggregate plan?
Which of the following is a method used for a capacity-based aggregate plan?a) Inventoriesb) Subcontractingc) Offering price incentivesd) Backorders
Review the following article to explain what type of aggregate planning Airbus does.https://www.reuters.com/article/us-airbus-production/airbus-confirms-plans-to-raise-a320-output-to-63-a-month-idUSKBN1HW1Z2
Which plan is an input into sales and operations planning?a) Marketing planb) Strategic business planc) Aggregate pland) Master production schedule
1. Which option should Ramesh choose? Why?2. Do you see any difficulties in executing the option you chose?3. Are there any other factors Ramesh should consider, beyond what is determined in the analytical aggregate plan?
What is the output of aggregate planning?a) Material requirements planb) Production planc) Rough-cut capacity pland) Marketing plan
Now that you have calculated the number of workers needed each period in Problem 3, Tameka wants to see how the plan would actually work. You need to:a) Show what would happen if this plan were implemented.b) Calculate the costs associated with this plan.c) Evaluate the plan in terms of cost,
What is the typical time frame for the aggregate plan?a) 0 to 6 monthsb) 6 to 18 monthsc) 0 to 2 yearsd) 2 to 5 years
Tameka Nicholas is concerned about BackPack’s corporate image and has decided against using hires and fires. Instead, she has asked you to consider a chase aggregate plan using the current workforce supplemented by either overtime or undertime to change capacity to match demand exactly. She has
In general, briefly explain how sales and operations planning is conducted?
In general, which type of situation is a chase aggregate plan more effective?
In which type of situation is a level aggregate plan more effective in general and what are the advantages for Airbus to use this strategy?
Which of the following is a disadvantage of using standard elemental times?a) More time studies are needed.b) Further disruption happens in the workplace.c) New process development may be discouraged.d) Using standard times is very labor intensive.
In general, what factors should be considered when designing worker compensation?
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