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operations management
Operations Management Processes And Supply Chains 13th Edition Lee J. Krajewski, Manoj Malhotra - Solutions
The senior management at Canine Kernels Company (CKC) mentioned in Problem 4 is concerned with the existing capacity limitation, so senior management wants to accept the mix of orders that maximizes the company's profits. Traditionally, CKC has utilized a method whereby decisions are made to
Remarkable and Co. manufactures and assembles bicycles using six distinct work elements. Each workstation is managed by one employee. Remarkable would like to assemble eight bikes in each 10-hour shift.Figure 6.17 details each work element and its associated durations in minutes as well as their
A bespoke furniture manufacturer requires a production line to manufacture 25 chairs with engravings per week, while operating only 40 hours per week. There are only four steps required to produce a single engraved chair with respective processing times of 10 minutes for cutting the wood, 10
Consider the following data for a project to install a new server at the Northland Pines High School.a. Draw the network diagram.b. Calculate the critical path for this project.c. How much slack is in each of the activities G, H, and I? Activity A B C D E LL G H I J Activity Time
Choice Hotels International is the company behind well-known hotel brands that range from budget-friendly EconoLodge and Rodeway Inns to Quality, Comfort Inns and its luxury brands, Ascend and Cambria. Over 6,400 properties are part of the franchisor's offerings both domestically and abroad. This
Roberts Auto Sales and Service (RASAS) consists of three car dealerships that sell and service several makes of American and Japanese cars, two auto parts stores, a large body shop and car painting business, and an auto salvage yard. Vicky Roberts, owner of RASAS, went into the car business when
The following information is known about a project to upgrade a point-of-sale system at Kids and Tots Apparel.a. Draw the network diagram for this project.b. Determine the critical path and project duration.c. Calculate the slack for each activity. Activity A B C D E F G Activity Time
Consider the following data for a project to reorganize the office space at Platinum Financial Advisors.a. Draw the network diagram for this project.b. Identify the critical path and estimate the project’s duration.c. Calculate the slack for each activity. Activity A B C D LU E F LL Expected Time
Risk is a measure of the probability and consequence of not reaching a defined project goal. Assume you are the project manager for a construction project. Identify the major risks to the project’s success and prescribe ways to circumvent them.
Good Souls, a charitable organization, is embarking on a new project aimed at rehabilitating prisoners by providing them with education, occupational skills, and financial support. The following data are available for the project.a. Draw the network diagram for the project.b. Determine the
Table 7.4 provides information about a refurbishment project of a residential property.a. How many weeks will it take to complete this project and what is the total slack?b. As the project manager, you are interested in completing your project as soon as possible by allocating additional resources.
Computer Systems Limited is currently deploying a nationwide CRM software system across all its retail outlets. Upon examination, the company realized it can reduce project duration by deploying additional resources. However, this involves additional costs. Table 7.5 contains information about cost
Table 7.8 contains data for the installation of imported generators from Germany in your office premises in Nigeria. The indirect costs are €200 per week, and a penalty cost of €900 per week will be incurred by your company for every week the project is delayed beyond week 50 days.a. What is
Nova Limited is a well-known manufacturer of coldpressed olive oil in Cyprus. The company's unique value proposition is that olives are crushed into a paste by using stone grinders and then pressed to extract oil from the pulp. Olives are harvested during autumn, and oil is extracted at the
A certain food item at P&Q Supermarkets has the demand pattern shown in the following 24-period table.a. Use the combination forecasting method of the Time Series Forecasting Solver of OM Explorer. Let error analysis begin in month 6, and include (1) a fiveperiod moving average (with a
Marianne Schwartz, the owner of Handy Man Rentals, rents carpet cleaners to contractors and walk-in customers.She is interested in arriving at a forecast of rentals so that she can order the correct quantities of supplies that go with the cleaners. Data for the past 10 weeks are shown here.a.
Parts Emporium, Inc., is a wholesale distributor of automobile parts formed by two disenchanted auto mechanics, Dan Block and Liya Kimathi. Originally located in Block's garage, the firm showed slow but steady growth for 7 years before it relocated to an old, abandoned meat-packing warehouse on
Managing inventory at Crayola is a fine balancing act. With the back-to-school period driving 42 percent of company demand for crayons, markers, paints, modeling compounds, and other products, production starts in February so enough finished goods are in the 800,000-square-foot warehouse in time to
A distribution center experiences an average weekly demand of 50 units for one of its items.The product is valued at $650 per unit. Inbound shipments from the factory warehouse average 350 units. Average lead time (including ordering delays and transit time) is 2 weeks. The distribution center
Sam's Pet Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.70 per bag. The following information is available about these bags.Current on-hand inventory is 320 bags, with no open orders or backorders.a. What is the
Consider again the kitty litter ordering policy for Sam's Pet Hotel in Problem 13.a. Suppose that the weekly demand forecast of 90 bags is incorrect and actual demand averages only 60 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error?b.
A supermarket in London sells 750 kg of rice per month from Thailand. The ordering cost is £250 and the holding cost is £0.75 per kg per year.a. How much rice should the supermarket order at a time?b. What is the time between orders?
Big Builder (BB) sells construction equipment such as concrete mixer, wheelbarrow, and angle grinders to highway agencies who use them for road construction. BB receives orders from multiple agencies via email and post. It costs BB £25 to process an order and the combined demand from multiple
You are a manufacturer of precision components for the automotive industry. Your supplier reviews stock every 4 weeks and replenishes it instantaneously. The standard deviation of demand during the lead time is 130 units. The supplier has streamlined its operations and promised a cycle-service
In a two-bin inventory system, the demand for 3-inch lag bolts during the 2-week lead time is normally distributed, with an average of 53 units per week. The standard deviation of weekly demand is 5 units.a. What is the probability of demand exceeding the reorder point when the normal level in the
An e-commerce retailer is trading a successful haircare product imported from overseas suppliers. It takes 6 weeks for the item to reach the warehouse from suppliers. Due to various import documentation requirements, placing an order costs £45 per unit. Weekly demand for this item varies, with an
Roland provides custom-made coffee mugs, saucers, keychains, magnets, and other souvenirs sought after by tourists visiting the Eiffel Tower. It purchases plain coffee mugs from a wholesaler in Germany and customizes them to suit customer needs. The cost to place orders with the supplier is
Northwoods Living is a country store specializing in knick-knacks suitable for a farmhouse décor. One item experiencing a considerable buying frenzy is a miniature Holstein cow. Average weekly demand is 30 cows, with a standard deviation of 5 cows. The cost to place a replenishment order is $15
Suppose that Sam's Pet Hotel in Problem 13 uses a P system instead of a Q system. The average daily demanda. What P (in working days) and T should be used to approximate the cost trade-offs of the EOQ?b. How much more safety stock is needed than with a Q system?c. It is time for the periodic
A cricket specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy for its bats, which have the following characteristics: Demand (D) = 350,000 units/year Standard deviation of weekly demand = 65 units Ordering cost = £35/order Annual holding cost (H)
Bob Carlton's golf camp estimates the following staff requirements for its services over the next 2 years.regular time and can work an additional 120 hours overtime. Regular-time wages and benefits cost Carlton $7,200 per employee per quarter for regular time worked up to 480 hours, with an
When Netflix releases a new season for a popular series, the number of its viewers is likely to increase substantially. Do you think the concepts of operations planning can be used for satisfying the demand for data?
Revisit Example 10.3, in which the consulting company has five jobs in its backlog. 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?Data from Example 10.3 Currently a consulting company has five jobs in its
Consider Managerial Practice 10.1 and the scheduling of Major League Baseball umpires. Relate the three levels in Figure 10.2 to the seasonal production of baseball games.Managerial Practice 10.1Figure 10.2 Operations Current machine capacities • Plans for future capacities Workforce
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.
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 jobs
Complete the MPS record in Figure 11.29 for a single item. Item: A Quantity on Hand: Forecast Customer orders (booked) Projected on-hand inventory MPS quantity MPS start 35 1 2 3 20 18 28 15 17 9 4 28 14 Week 5 23 9 Order Policy: 60 units Lead Time: 1 week 6 30 7 33 7 8 38
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
This Active Model is available online. It allows you to evaluate the relationship between the inventory record data and the planned order releases.QUESTIONS1. Suppose that the POQ for item B is changed from 3 weeks to 2 weeks. How does this change affect the order releases for items B, C, and D?2.
Complete the MPS record shown in Figure 11.30 for a single item. Item: A Quantity on Hand: Forecast Customer orders (booked) Projected on-hand inventory MPS quantity MPS start 75 1 65 January 2 65 40 10 3 4 65 45 85 5 50 Order Policy: 100 units Lead Time: 1 week February 6 50 35 70 7 50 8 50
Figure 11.31 shows a partially completed MPS record for ball bearings.a. Develop the MPS for ball bearings.b. Four customer orders arrived in the following sequence:Assume that you must commit to the orders in the sequence of arrival and cannot change the desired shipping dates or your MPS. Which
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 concluding with departure after a shampoo and trim at 5 p.m. on day 5.To adequately train a dog, the
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). As they arrive, you must decide whether to accept or reject them. Which orders would you accept for
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 applied to overcome the challenges faced by the surgery team?
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 through 10. The current on-hand inventory is 50 units. The order policy is to produce in lots of 75.
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 booked customer orders for the item, starting with week 1, are 12, 35, 5, 7, 5, 9, 3, 12, 0, 0,
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, and 15 units for delivery in the first (current), second, third, and fourth weeks. Currently, 25
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 product A have at all levels?c. How many intermediate items does product A have at all levels?d.
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 record by using the POQ rule with P = 2.c. Complete the last three rows of the record by using the POQ
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. Develop the material requirements plan for the next 6 weeks for items C, D, and E.a. Develop the
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 units in week 2 and 200 in week 4 and 50 in week 8. In the MPS for product B, the MPS start row has
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 inventory records are shown in Table 11.11. Product A Product B Product C An 80-unit order is to be
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 10.Derive an MRP plan for the components going into product A using the data in Table 11.16.What specific
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 goods. The following table contains last year's average inventory level for each item, along with its
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 house marketing, sales, operations and manufacturing, finance, R&D, Internet services, customer care
"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 turned over seven times. For the next year, Busy Bee plans to increase annual sales (at cost) by 30
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 costs Operating profit Total inventory Fixed assets Long-term
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 requests made by customers. Table 12.3 shows last year's average inventory levels for these items,
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, and
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
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 for Snoopy and a flak jacket for Wile E. Coyote.For many sales, the company relies upon the help of
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
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 only make
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 nearest week.b. What safety stock and target inventory level provide an 88 percent cycle-service
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 orders within the planning period in which they are received. Each worker puts in 600 hours of regular
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 to observe the need for checkout clerks on the first shift for a 1-month period. At the end of the
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 parts stores and several car dealers in its region. Johnny Bennett, who serves as the president,
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
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
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, equipment, and insurance) and average variable costs per shipment (labor, transportation, and utilities)
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
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 system 4. Proximity to markets 5. Proximity to materials 6. Taxes 7. Utilities Total Factor
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
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
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 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
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
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.
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 between all locations may be found in Table 15.3.a. The farmer travels from the farm (A) to (B) to (C)
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 energy bar that became the genesis of Clif Bar & Company. After consuming most of his supply of Power
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
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, Georgia. Due to the high cost of shipping, the company is considering shipping its products
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 probability
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 per day. Skiing normally occurs in the 14-week period from December to April, during which the lift
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 £160, the equipment cost is £175, and the overhead cost is £125. Daily demands, along with selling
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 students. Labor costs are $4,000 per class, materials costs are $20 per student per class, and
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). Seconds are sold for $90 each at Attire’s Factory Outlet Store. The remaining 80 garments are sold to
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