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operations management

Questions and Answers of Operations Management

What does moving the objective function line to the boundaries of the feasible solution space mean in a maximization linear programming problem?
A copper extraction company in South Africa extracts copper from two sources: P and N. For optimum capacity utilization, the extraction company’s plant should process at least four tons of copper
What does the term shadow price mean in the linear programming sensitivity analysis output obtained using Excel Solver?
A fertilizer manufacturer has orders for 900 tons of a certain fertilizer from Chicago, Illinois, and 600 tons from Omaha, Nebraska. The company has 1,050 tons of this fertilizer in a warehouse in
What do the terms allowable increase and allowable decrease refer to in the linear programming sensitivity analysis output obtained using Excel Solver?
What are some possible effects that adding an additional constraint can have on the feasible solution space and the optimal values of a linear programming solution?
A cattle rancher in Australia wants to determine a least-cost diet to feed the cattle on his ranch. The diet, however, must contain certain minimum amounts of the following four essential nutrients:
A furniture manufacturer produces high-quality end tables and chairs using mahogany wood. An end table produced by the furniture manufacturer yields a profit of $15 per table, and each chair yields a
Duke Manufacturing produces both baseballs and cricket balls on a weekly basis. The resources needed to produce baseballs and cricket balls are leather, cutting, and dyeing time, as well as sewing
A gold mining company extracts gold from mine A and mine B. Both mines produce three grades of gold: high, medium, and low. The cost to mine a ton of gold from mine A is $300, and from mine B, it is
Deluxe Chemicals produces two types of photo developing chemicals—D78 and R45. The cost to produce D78 is $2, and for R45, it is $1. Based on next month’s forecasts of demand for these chemicals,
Karen Stanley, the fictional superintendent of education of Erie County, Pennsylvania, has the responsibility of assigning students to three high schools in her county and to provide bus
Asean Aromatics, a manufacturer of perfumes and aromatic oils in India, has three manufacturing plants in Trichy, Vijayawada, and Mysore, and warehouses in Chennai, Cochin, and Vizag. The following
Filbeck Investments manages the money invested by several wealthy clients. The company tailors its investment strategy based on the client’s risk tolerance and desire for the return on investment.
Tasty Eateries is a restaurant that is open 24 hours a day. Restaurant employees report for work at 2 a.m., 6 a.m., 10 a.m., 2 p.m., 6 p.m., and 10 p.m. The employees work on eight-hour shifts, and
You are a supply chain expert hired by Tru-Blade to help its managers make this location decision. For the alternative plant locations, determine the shipping patterns that will minimize total
For the following transportation problem, use the northwest corner rule to find an initial feasible solution and then the stepping stone method to find an optimum solution: To A Capacity From $5 $7
What are the three pieces of information required to formulate a transportation model?
For the following transportation problem, use the matrix least cost method to find an initial feasible solution and then the stepping stone method to find an optimum solution: To Capacity A. From $3
What are the five major assumptions required for transportation modeling?
For the following transportation problem, use the northwest corner rule to find an initial feasible solution and then the stepping stone method to find an optimum solution: To Capacity A From $4 $4
What is the difference between a balanced and an unbalanced transportation problem?
An electronics company has manufacturing plants at locations A, B, and C. The company ships a computer component manufactured in these plants to warehouses at locations X, Y, and Z. Unit shipping
List the four “steps” of the northwest corner rule.
J & K Timber Supply Company ships oak flooring from three of its mills in Jodhpur, Bhopal, and Nagpur to three warehouses in Chennai, New Delhi, and Chandigarh. Shipping costs in $ per ton, mill
List the four “steps” of the matrix least cost method.
A trucking company has to move 120 tons of concrete from three supply sources (A, B, and C) to three road construction project sites (X, Y, and Z). Shipping costs in $ per truck load, supply
Why does the matrix least cost method gives a better initial solution than the northwest corner rule does?
The following transportation matrix provides an initial feasible solution to a transportation problem. Perform one iteration of the stepping stone method to find an improved solution. What is the
What is the implication of getting a negative value of improvement index for a closed path?
The following transportation matrix provides an initial feasible solution to a transportation problem. Perform one iteration of the stepping stone method to find an improved solution. What is the
For a balanced transportation problem, what are the two criteria for a nondegenerate optimum solution?
Refer to Example B.1. Reformulate the Orion Electronics Company transportation problem as a linear programming model.
What does the term degeneracy mean in the context of transportation modeling, and what problems does it create in applying the stepping stone method?
Refer to problem 5. Reformulate that transportation problem as a linear programming model.Data from problem 5J & K Timber Supply Company ships oak flooring from three of its mills in Jodhpur,
Cool Air Inc. currently manufactures room air conditioners in its Chicago and Baton Rouge plants. The company ships its air conditioners to three warehouses in Boston, Tucson, and Denver. As a result
In the stepping stone method, what is the rationale for placing alternate + and – signs around the closed path?
National Energy Inc. supplies natural gas to customers to three counties in Pennsylvania€”Erie, Franklin, and Venango. National Energy receives natural gas from three
Why do we create dummy supply sources or dummy demand destinations in transportation modeling problems?
Ranbaxy Chemicals produces a synthetic resin that is manufactured in two of the company€™s plants in Colorado Springs and Dayton. Four distributors from Buffalo, Atlanta, New Orleans, and
Pennington Hardwood Lumber Supplier has three lumber mills in San Jose, Dayton, and Boston that manufacture pre-cut hardwood. These pre-cut hardwood are shipped to building warehouses in Cleveland,
Refer to problem 14. Reformulate that transportation problem as a linear programming model.Data from problem 14Pennington Hardwood Lumber Supplier has three lumber mills in San Jose, Dayton, and
Neptune Enterprises manufactures central processing units (CPUs) for a line of personal computers. Currently, the CPUs are manufactured in three existing plants in Raleigh, Akron, and Cedar Rapids.
Consider the following transportation matrix that has an initial feasible solution obtained using the northwest corner rule. It is impossible to apply the stepping stone method to this matrix in its
The following transportation matrix provides a degenerate initial feasible solution to a transportation problem. Apply the necessary fix to overcome the degenerate condition, and perform one
You have been hired as a consultant by a refrigerator manufacturer to evaluate the freight costs of motors needed for assembly of the company€™s refrigerators. Relevant data on plant
Refer to problem 19. Reformulate that transportation problem as a linear programming model.Data from problem 19You have been hired as a consultant by a refrigerator manufacturer to evaluate the
List some reasons why waiting lines occur.
A grocery store in a small town has a single check-out counter to service its customers. Customers wait in a single line at the checkout counter and are served on a first-come, first-served basis. On
1. What does this case suggest about the way in which operations and queuing models must also address the psychology of waiting lines in formulating methods for minimizing wait?2. Think of a long
The Canara Bank drive-in teller window can serve a customer at an average of 4 minutes per customer. Service time has a negative exponential distribution. Customers arrive in their cars at a rate
Define in your own words “Little’s Law.” Why is it applicable to a wide variety of queuing systems?
A local department of motor vehicles has an automated photographic machine that imprints the photographic image on to the license card including the lamination of the complete card. Drivers arrive at
What are some of the undesirable consequences of a waiting line?
The student recreation center of a state university has only one coffee shop. Students arrive at the coffees shop at an average rate of 35 per hour according to a Poisson distribution. The only
For most waiting line systems, the first-come, first-served (FCFS) rule is the most frequent assumption of queue discipline. Give some examples of waiting line systems where this assumption would not
What are the cost implications of managing waiting lines?
List the four key features of a waiting line system.
The local driver license center uses a single-server, single-line, single-phase system when processing license renewals. Customers arrive at the facility according to a Poisson distribution at the
Refer to the data in Problem C.2. The owner of the coffee shop at the student recreation center, Amanda Murdock, is interested in computing the per day total cost of the waiting line system at the
The following are some real-world waiting line systems. Indicate whether it is a single- or multichannel, single-phase or multiphase, the queue discipline, and whether the calling populations is
An automatic roller coaster ride at an amusement park takes a constant 2 minutes to complete a ride. Customers arrive at the automatic roller coaster ride facility at the rate of 25 per hour. The
Amanda Murdock, the owner of the coffee shop at the student recreation center in Problem C.2, to reduce the student waiting time at the coffee shop has decided to install an automatic coffee vending
Give some examples of single-channel waiting line systems with constant service times.
Which of the two performance measures is larger: Ls or Lq? Explain.
Neptune Manufacturing Inc. makes soaps in an assembly line process. One of the machines on the line is an automatic soap press that has single assembly line feeding into it. Partially completed units
What are the common performance measures calculated for evaluating waiting line systems?
Jonathan Trott, the manager of the driver license center in Problem C.3, has decided to open another service counter to improve the license renewal processing service. The time to process a license
What does the term “steady state” mean in the context of a waiting line system?
Refer to the data in Problem C.3. Jonathan Trott, the manager of the driver license center, is interested in computing the per day total cost of the waiting line system at the center. He has
A local pharmacy has the following pertaining to prescription requests and service times on a typical Monday:1. Determine for each time period the probability that there are no customers in the
What are some factors you should consider (in addition to choosing a queuing model) in managing real-world waiting lines?
The Donghai Bridge of China is a 20.2-mile-long toll bridge stretching from Shanghai to the Yangshan offshore water port. Currently, there are six exact change toll booths, each staffed by an
The Gulf Shipping Company in Dubai, UAE, has four terminal docks in its warehouse. Arriving trucks form a single line and use one of the four available docks for loading and unloading of the cargo.
A large hotel receives telephone calls to its switchboard at an average rate of 50 calls per hour according to a Poisson distribution. The switchboard is staffed by three operators, and the service
A service technician for a laser printer manufacturer services five customers who have bought five large printers from the company. Each of these printers requires repair and maintenance work after
A drilling department Orion Manufacturing Inc. has five drill press machines and has one repair technician to service these machines. Each drill press operates for an average of 10 hours (negative
The registration desk at the exclusive Le Meridien Hotel has four staff agents to check in the hotel guests. Guests arrive at the registration desk at an average rate of 40 per hour (Poisson
Passengers at the Sahar International Airport arrive at a security gate at the rate of 40 passengers per hour (Poisson distributed) and form a single line waiting for a security check at one of the
Think of an example of a service failure that you experienced. It could be any of a variety of examples from retail, food and dining, health care, etc. Analyze and evaluate the situation. What were
How is demand forecasting similar to demand planning, and how is it different?
What are the strengths and weaknesses of a demand forecasting system? What limitations to the systems must we be aware of?
Imagine you are shopping for a new car. What are some customer service metrics that the auto dealer should be using to evaluate its performance? Based on your experience with buying a car, did you
What is collaborative forecasting, and why is it so important in demand management?
Imagine you were shopping for a new smartphone at a large wireless service provider. How do the metrics of customer service (time, dependability, communication, and convenience) determine how
How does global demand volatility affect an organization’s upstream and downstream suppliers? Use a grocery store as an example.
Why can postponement be an effective demand management strategy? How does it work for a service firm? A manufacturer?
How does services demand management operate? Why is it so critical for service organizations (Hint: use the concept of “capacity constrained” in your response)?
What are the four supply chain dimensions of customer service?
Service recovery success hinges on two elements. What are they?
Give some examples of a company’s operational planning activities that require demand forecasts.
1. This scenario shows how ethics can influence decision-making with forecasting. Put yourself in Katie’s position; how would you respond?2. Select either the “tell the truth” or the “fix the
When is it appropriate to use qualitative forecasting methods?
Discuss the qualitative forecasting technique of a historical life-cycle analysis.
What is a time series and the rationale for forecasting based on a time series analysis?
Discuss briefly the various components of a time series.
What are the advantages of the simple exponential smoothing method of forecasting over the moving average technique?
In exponential smoothing, what is the rationale for choosing a low versus a high value of α?
Under what circumstances is the trend-adjusted exponential smoothing method of forecasting superior to a linear trend analysis?
What is the difference between the linear trend equation and the linear regression equation for a causal model?

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