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business
operations management

Questions and Answers of Operations Management

Your company supplies sterile syringes to a distributor of hospital supplies. The contract states that quality should be no worse than 0.1 percent defective, or 10 parts in 10,000. During
What is the lead time (in weeks) to respond to a customer order for product A, based on the BOM shown in Figure 11.34, assuming no existing inventories or scheduled receipts? FIGURE 11.34 ► A BOM
The town of Lexington purchases gasoline from three vendors to fuel its fleet of municipal vehicles. Eachvendor delivers gasoline in 6,000-gallon quantities. Since vendors must deliver the fuel, a
Amazing Dairy produces yogurt, sour cream, kefir, and cottage cheese in 10-pound containers for the food service industry. Each product is made in 10-pound batches and requires similar processing
Happy Dog Inc. produces three types of dog food. Puppy Blend is produced for dogs that are less than a year old, Adult Blend for dogs between 1 and 8 years old, and Geriatric Blend for dogs older
Memorial Hospital is a 265-bed regional health care facility located in the mountains of western North Carolina. The mission of the hospital is to provide quality health care to the people of Ashe
Business travel often means staying overnight in a hotel. Upon arrival, you may be greeted by a doorman or valet to assist you with your luggage. Front desk staff awaits your check-in. Behind the
The manager of Perrotti’s Pizza collects data concerning customer complaints about pizza delivery. Either the pizza arrives late, or the wrong pizza is delivered.a. Use a Pareto chart to identify
Recently, the Polish General Corporation, well-known for manufacturing appliances and automobile parts, initiated a $13 billion project to produce automobiles. A great deal of learning on the part of
Smith, Schroeder, and Torn (SST) is a short-haul household furniture moving company. SST’s labor force, selected from the local community college football team, is temporary and part time. SST is
In what ways does the triple bottom line affect how the strategies for a firm’s operations function are formulated and implemented?
Orion Inc., a fictional company, produces automotive parts, accessories, batteries, and maintenance items for a variety of vehicles, including cars and vans. Orders for the company€™s
Quasar Exports Ltd, a fictional Turkish manufacturer of glass, wants to use a c chart to monitor the number of defects in the sheets of glass it produces. The company wants to use the chart to
A local manufacturing plant has three work stations (as shown in the following figure) with two machines operating in parallel in workstation 1. In other words, before proceeding to station 2, the
An Italian restaurant chain is planning to open a distribution center to prepare and ship the food ingredients required by five of its restaurants in Germany. The map coordinates and the annual
What steps should a manager follow in using the simulation tool?
Discuss the reasons why businesses develop new products.
Why are SPI and CPI values important for the organization when determining a project’s status?
What are the flaws of using S-curves to determine the “true” status of an ongoing project?
Develop an argument for the triple bottom line when selecting among strategic alternatives; that is, how do the concepts of environmental, economic, and social value influence strategy?
While there are numerous ERP software vendors, the two largest are SAP and Oracle. Find out how these two companies compete, and compare their customers and product offerings.
Dale Computer Company accepts orders from customers for computers online through its website. The company configures and builds the computers to order at one of its distribution centers from
Jericho Vehicles is considering making a bid for a mobile rocket-launching system for the military. However, the company has almost no experience in producing this type of vehicle. In an effort to
Describe a job you have had in the past or a job you are very familiar with. Indicate the negative aspects of the job and how it could be improved with current human resource management techniques.
Look for layout software packages on the Internet. What do systems like Vis Factory do? Can you find any of the layout approaches discussed in the text?
Explore the sustainability requirements of production outsourced to different parts of the world and their connection to processes and technology. How can a supply chain enhance its sustainability
Search the Internet for two or more companies that design for environment. What are the main components of each company’s green design initiative? How do their approaches differ?
Metropolitan Hospital is a university-owned and operated hospital. Its emergency room is the largest and most prominent in the city. Approximately 70% of emergency cases in the city come or are sent
Access the website of a company that sells products to the general public on the Internet. Discuss the quality attributes of the site, and evaluate the quality of the website.
Dalton Pharmaceuticals enjoys a dominant position in most of Canada with over 800 discount retail outlets. These stores are served by twice-weekly deliveries from Dalton€™s 16 warehouses,
Gander University is contemplating opening a European campus where students from the main campus could go to take courses for one of the four college years. At the moment, it is considering five
Let’s return to the Romano Chocolates Boutique, which, as stated, orders chocolates from a supplier in Belgium. Demand for the chocolates is relatively constant at 20 boxes per day. The lead time
A grocery store uses a fixed order cycle policy for ordering the paper towels it sells to the store€™s customers. Demand for the paper towels is normally distributed with a mean of 50 rolls
Given the following forecast and cost information, determine the total cost of a chase plan that uses regular time production output of 400 units per month, overtime is used when needed up to a
Complete the master production schedule based on the following information:Additional Information:On-hand inventory: 160Schedule production whenever projected on-hand inventory drops below 30 MPS lot
The components needed to assemble an end product, their lead times, and the amount of their on-hand inventories are presented in the following table. The product structure tree of the end product is
What are some of the guidelines for effectively managing and controlling the performance of a master schedule?
Define backward loading and forward loading. What is the purpose of using each of these loading techniques?
What is sequencing? Explain how each of the five commonly used priority rules works in sequencing individual jobs.
The following jobs are waiting to be processed at a work center. Assume that the jobs arrived today and are listed in the order in which they have arrived.1. Sequence the jobs using the following
A machining center has the following small jobs from five of its customers. The jobs are listed in the order in which they were received. Each job requires a certain amount of setup time in addition
Why are transportation models treated as a special case of linear programming models?
What are the advantages of computer simulations (compared to manual simulations) in analyzing real-world problems?
Ayush Pharmaceuticals, an Indian manufacturer of health-care products, is planning to expand its capacity to produce a new line of ayurvedic and herbal products. Nevertheless, the president of the
What are the two key reasons for poor decisions?
1. Frame this situation as a decision. What are the strategic choices that Gerber faces as a result of these circumstances?2. Suppose you were a senior manager at Gerber when this issue came to
1. This case illustrates an example of the fact that sometimes the €œbest€ alternative is the one that minimizes costs; in other words, the optimal solution is the one that
List and explain briefly the steps in the decision-making process.
Refer to Problem 1. After examining the past history of sales for similar products, Girija was able to estimate the probabilities for the three demand scenarios as: P (low) = 0.3; P (medium) = 0.4;
List and explain the four elements of a decision.
Discuss the three decision-making categories.
Refer to Problem 3. After consulting with various fitness facilities in his state and examining demographic data, Miles was able to estimate the following demand probabilities: P (Low) = 0.2; P
Define the following decision-making criteria:1. Laplace criterion2. Maximin criterion3. Maximax criterion4. Hurwicz criterion5. Minimax regret
The Great Western University bookstore buys textbooks two months prior to the beginning of each semester. The store manager, Heidi Strong, uses departmental data and past student registration records
What is the expected value concept?
Sun Screen Inc., a U.S.-based manufacturer of solar panels, is planning to build a new manufacturing facility in one of five possible locations: Mexico, India, China, Greece, or Argentina.The cost of
Why is sensitivity analysis a useful tool for making decisions under uncertainty?
AMCO International, a major apparel retail company, has several stores in the United States and in countries throughout the globe. It imports most of its apparel products and garments from overseas
When are decision trees an appropriate tool to use in the decision making process?
Refer to Problem 7. After consulting with economists, government officials, and other supply chain experts, the vice president of supply chain for AMCO international was able to estimate the
What are some criticisms of the Hurwicz and the Laplace criteria?
Michael Brusco has inherited a large amount of money from his aunt. He wants to invest this money for two years and is considering several short-term investment alternatives. The returns on his
In evaluating several capacity planning alternatives using EV, a manager arrives at a virtual tie between two alternatives. What are some additional factors he should consider to break the tie?
Refer to Problem 9. After consulting with economic professors of his alma mater, Penn State University, Mike Brusco was able to estimate the following probabilities for the three different states of
When is it appropriate to use the expected value approach as a decision criterion? When is it not appropriate?
Scary Toys, Inc. must decide how to promote a new singing Zombie doll. Initially, the company must decide whether to market the doll or test market it first. Following the test marketing, the firm
List some ways by which the tools of decision analysis can be used to promote potentially unethical behavior?
Ozgun Demirag, the owner of a high-end U.S. apparel store, Feminine Fashions, is planning to open another facility in her hometown of Izmir, Turkey. Demirag can open a large store, a small store, or,
Kumar Electronics is planning to introduce a new line of electronic products it plans to market and sell in India. Sanjay Kumar, the owner, is trying to decide whether to build a small or large
Refer to Problem 12. Ozgun Demirag is now considering whether to conduct a test-marketing program before opening any type of store in Izmir, Turkey. The test-marketing program will cost $10,000. If
Medaas Oil Company located in Stavanger, Norway, is considering making a bid for an oil exploration contract to be awarded by the Norwegian government. Megan Medaas, the Chief Financial Officer of
Elite Shipping Inc., a third-party logistics provider, in Chennai, India, is planning to build a new warehouse to accommodate the increasing demand for its warehousing services. Mr. Venkatesh, the
Refer to Problem 17. Although Mr. Venkatesh of Elite Shipping has estimated the payoffs associated with the various warehouse options, he is not willing to assign probabilities to the two states of
Refer to Problem 13. Sanjay Kumar of Kumar Electronics is reluctant to assign probabilities to the different states of nature (demand). He asks for your help in determining which alternative among
Asean Aromatics, a manufacturer of perfumes and aromatic oils, is planning to introduce three new perfumes: Lavender Mist, Jasmine Dreams, and Sandalwood Delight. Nevertheless, the president of the
Refer to Problem 21. After extensive discussion with an economics professor from his alma mater, Capt. Muralidharan has decided that reasonable probabilities for the various demand scenarios are 0.10
Patagonia, designer of outdoor clothing and sports equipment, is planning to introduce a new brand of ski jackets: Ultra lite and Feather lite. The probabilities for the various possible states of
Sunshine Health Club is planning to build a new athletics and recreation facility and is debating which of the service feature alternatives (shown in Table F.29) to include in addition to the usual
Refer to Problem C.13. The management of the shipping company wants to reduce the average service time per terminal dock to 15 minutes per truck by adding a fifth terminal dock. Assume the arrival
What is simulation, and why is it a widely used tool for solving real world problems?
The interarrival time of cars at a toll booth on an interstate expressway is defined by the following probability distribution:1. Simulate the arrival of cars at the toll booth for 15 arrivals, and
The Millers Ice Cream store in Bar Harbor, Maine, is one of the most popular tourist destinations in the downtown area. Bar Harbor is the definition of a seasonal attraction, with most of its crowds
Provide some examples of real-world problems that have been studied using simulation.
Refer to problem D.1. The service time for each car arriving at this toll booth is between 1 and 5 minutes. The probability distribution of service times is given in the following table. Using the
The time between emergency calls at the 9-1-1 emergency call service of a Pennsylvania township has the following probability distribution. The 91-1 service sends emergency responders 24 hours per
Refer to Example D.2. Ryan Smith, the Orion Electronics store manager, would like to try an alternative inventory policy of ordering 15 microwave units whenever the inventory level drops to 5. Also,
The Neptune Manufacturing Company has a process that requires four machines to manufacture a product. The number of machines that will break down in any given week varies and the time to repair a
Provide examples of how some companies use Monte Carlo simulation.
The Gulf Shipping Company in Dubai, UAE, unloads cargo from ships arriving daily on a first-come, first-served basis. Ships that are not unloaded on the day they arrive are unloaded the following
List the five basic steps of the Monte Carlo simulation technique.
The administrator of emergency ward of Trinity Hospital has to decide the number of doctors to be made available to treat patients arriving at the facility every night. The number of doctors required
To draw meaningful conclusions about the simulation study of a realworld system, a large number of simulation trials is required. Why?
Champion Electronics Warehouse sells a certain brand of headsets that it orders from Reliance Electronics in Japan. The probability distribution of demand per week for the headsets and the
A satellite TV network provider receives calls for technical assistance from customers at its call center. The interarrival time between calls is a random variable and varies between 1 and 5 minutes.
Why simulation may be the only choice (instead of other analytical tools) that a manager may have in studying inventory ordering policies and waiting line problems?
A grinding machine has two bearings that fail periodically. The probability distribution of the life of both bearings is identical and is shown in the following table:When a bearing fails, a repair
Spar Solutions, Inc. (SSI) is an engineering and fabrication firm that specializes in manufacturing drilling rigs for deep water oil exploration. SSI produces a special drilling platform called the
Explain the learning curve phenomenon.
Why are learning curve effects not particularly significant in mass production systems?
A software company hires a new programmer to write the coding sequences for a software project. It is estimated that the new programmer will take 30 hours to write the first coding sequence. Assuming

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