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business
operations management

Questions and Answers of Operations Management

Suppose you were considering hiring a supplier for a critical good your firm needs to make its products. Your final choices came down to three companies: one in Nigeria, one in Venezuela, and one in
Give an example of a supply chain for a service.
Figure 1.5 presents the operations function as a system that transforms inputs into outputs. For the following scenarios, identify the inputs and outputs and the value created during the
Consider the operation management interfaces with other business functions shown in Figure 1.4. Read the Zara Operations Profile. What interfaces in Figure 1.4 does Zara manage well? Why?Figure 1.4
What are the key differences between goods and services?
Use the Internet to find examples of organizational transformation processes that are(a) Physical,(b) Locational,(c) Transactional,(d) Physiological,(e) Psychological, or(f) Informational?List a
After considering the various career options within supply chain and operations management, what underlying skills do you believe successful managers need to possess? Why?
Explain in some detail the critical role of the operations function in a company’s success and its supply chain.
Define global supply chains. What are the inherent challenges that companies face in managing them?
Why are companies setting up call centers and other service offices in India? If you were hiring Indian employees for such a call center, what characteristics would be critical for them to be hired?
1. Develop an argument either in favor of or against a deliberate shortage strategy, such as Nintendo has experienced in the past. What are the advantages and disadvantages of maintaining
Wal-Mart (Wal-Mart Stores Inc., Bentonville, AR) has been one of the most successful companies in the retail industry because of its ability to sell products at “everyday low prices.” What
What are some key reasons why a firm should consider offshoring or outsourcing its work? Imagine you are the head of operations for Nike. What functions would it make sense to offshore or outsource,
1. How do you respond to the view that China’s competitive advantage is based solely on a low-cost strategy that results from its workers’ low wages?2. Do you see dangers from over-reliance on
Toyota, known for its quality automobiles, had its reputation tarnished by having to recall millions of its vehicles due to defective accelerators and brakes. The following article discusses the
Compare and contrast outsourcing and offshoring. List some of the companies that have adopted these strategies in recent years and the reasons for them.
Give three examples of large firms that have international suppliers.
The Braykup China Company makes an assortment of gift and commemorative items with team and university logos, such as plates, bowls, and mugs. One popular item is a commemorative stein. The steins
Go to the Excellence Canada website at www.nqi.ca and research several companies that have won the different awards. Describe any common characteristics that the quality-management programs in those
What is your core competency? Make a list of the core competencies you will need to compete successfully in the job market. Design a strategy for developing the competencies that you do not have and
Kim Wakaruk, R.N., the charge nurse of the antepartum ward of Children€™s Hospital in Calgary, needs help in scheduling the nurse workforce for next week.a. Create an employee schedule that
University students always have a lot of work to do, but this semester, Katie Sirinyan is overwhelmed. The table below lists the assignments she faces, the estimated completion times (in days), and
Look for advanced planning and scheduling software on the Internet. Write a summary of the techniques presented.
Explain the drum-buffer-rope concept.
What is a poka-yoke? Give an example.
Why is uniform production important to lean production? How is it achieved?
Which elements of lean production are the most difficult to implement? Why?
Zakirul is asked to produce 250 squidgets an hour. It takes 30 minutes to receive the necessary material from the previous workstation. Each output container holds 25 squidgets. The factory currently
Soltar Manufacturing produces three types of trucks on one assembly line: the long-haul (L), the short-haul (S), and the vocational truck (V). Next month the company has orders for 500 long-haul
What are some typical benefits from implementing lean production?
Discuss the problems Toyota has had with quality. What has the company done to refurbish its reputation?
Access the website of an ERP vendor such as Oracle, SAP, Infor, i2 Technologies, or QAD. Make a list of the modules available. Choose one module to describe in detail.
Sitting on Maggie Klimchuk€™s desk is the latest planned order report from the company€™s MRP system. Maggie€™s job is to determine if there is enough capacity to handle
Kid€™s World sells outdoor play equipment for children. One of its most popular items is a 5-foot by 7-foot wooden sandbox shown below. General assembly instructions follow. Assembly
From articles in recent business magazines, describe the newest trends in e-business software.
Valley Electric Company generates electrical power at four coal-fired power plants in Nova Scotia, New Brunswick, Quebec, and Ontario. The company purchases coal from six producers in British
The Cascades Swim Club has 300 shareholders, each holding one share of stock in the club. A share of club stock allows the shareholder€™s family to use the club€™s heated outdoor
The daily demand for Iron coat paint at the Top Value Hardware Store in North Bay is normally distributed, with a mean of 30 liters and a standard deviation of 10 liters. The lead time for receiving
In Problem S13-11 discuss how you might assess the accuracy of the average rating for North-East University students based on only 20 simulated dates.Problem S13-11Northern University and North-East
Complete the available-to-promise table below. Period On-hand = 10 5 Forecast 50 50 50 50 50 50 Customer orders 56 17 75 50 16 14 Master production 100 100 100 schedule Available-to-promise 3. 2.
Complete the available-to-promise table below. Period 3 On-hand = 30 Forecast 100 50 100 50 100 50 Customer 75 50 116 73 45 23 orders Master 50 100 50 100 100 50 production schedule Available-to-
Calculate the available-to-promise row in the following matrix. Period 3 On-hand = 100 Forecast 50 100 50 100 50 100 15 Customer orders 50 125 75 175 45 200 Master production 200 schedule
The Mystic Coffee Shop blends coffee on the premises for its customers. It sells three basic blends in bulk in one-kilogram bags: Special, Mountain Dark, and Mill Regular. It uses four different
East Coast Airlines operates a hub at the Halifax International Airport. During the summer, the airline schedules seven flights daily from Halifax to Toronto and 10 flights daily from Toronto to
The Cross-Canada Trucking Company has expanded its shipping capacity by purchasing 120 trucks and trailers from a competitor that went bankrupt. The company subsequently located 40 of the purchased
The Tycron Company produces three electrical products€”clocks, radios, and toasters. These products have the following resource requirements:The manufacturer has a daily production budget
University Press publishes textbooks for the university market. The demand for university textbooks is high during the beginning of each semester and then tapers off during the semester. The
Calgary Airlines routinely overbooks its flight from Calgary to Vancouver. Overbooking discounted seats can be expensive because providing a bumped passenger with a last-minute flight on a competing
FlyUs Airlines is unhappy with the number of empty seats on its Sudbury to Toronto flight. To remedy the problem, the airline is offering a special discounted rate of $89 instead of the normal $169,
NorthStar Airlines runs daily flights from Halifax to Montreal. The planes hold 60 passengers and cater to the business traveler with comparable business rates. The recent economic downturn has
What constitutes the feasible solution area on the graph of a linear programming model?
Barrows Textile Mills produces two types of cotton cloth—denim and corduroy. Corduroy is a heavier grade of cotton cloth and, as such, requires 7.5 kilograms of raw cotton per meter, whereas denim
The Pinewood Cabinet and Furniture Company produces sofas, tables, and chairs at its plant in Montreal. The plant uses three main resources to make furniture€”wood, upholstery, and labour.
The Black Jack Distillery produces custom-blended whiskey. A particular blend consists of rye and bourbon whiskey. The company has received an order for a minimum of 400 liters of the custom blend.
The Star City Café at a U.S. campus student centre serves two coffee blends it brews daily, Morning Blend and Study Break. Each is a blend of three high-quality coffees from Brazil, Tanzania, and
Dr. Beth McKenzie, the head administrator at Victoria Hospital, must determine a schedule for nurses to make sure there are enough nurses on duty throughout the day. During the day, the demand for
The McCoy Family raises cattle on their farm in Alberta. They also have a large garden and green-houses, in which they grow ingredients for making two types of relish—cabbage and tomato.
The Big Max grocery store sells three brands of milk in half-liter cartons—its own brand, a local dairy brand, and a national brand. The profit from its own brand is $0.97 a carton, the profit from
John Davis owns Eastcoasters, a bicycle shop in Fredericton. Most of John’s bicycle sales are customer orders; however, he also stocks bicycles for walk-in customers. He stocks three types of
The Net Road Trucking Company participates in a North American Internet transportation exchange where customers advertise their shipments including load weight and volume, and trip origin and
From Problem S14-42, assume that the customers have the following truck capacity loads:Determine the optimal assignment of trucks to customers that will minimize total distance while also achieving
The NetRoad Trucking Company based in Edmonton has eight trucks located throughout the Prairies that have delivered their loads and are available for shipments. Through their Internet logistics site,
Mill Mountain Coffee Company currently operates 12 coffee shops in downtown Kelowna. The company has been losing money and wants to downsize by closing some stores. Its policy has been to saturate
In the event of a disaster situation at Tech University from weather or an accident, victims will be transported by emergency vehicles to three area hospitals: County General, Memorial, and All
Mary Itzkoff is a scholarship soccer player at Local University. During the summer she works at a youth all-sports camp that several of the university’s coaches operate. The sports camp runs for
Gilbert Hua and Angela Pasaic spent several summers during their university years working at archaeological sites in the American Southwest. While at these digs they learned from local artisans how
Describe the difference between independent and dependent demand and give an example of each for a pizza restaurant such as Domino’s or Pizza Pizza.
The Wallace Stationery Company purchases paper from the Seaboard Paper Company. Wallace produces stationery that require 1,415,000 sq. meters of stationery per year. The cost per order for the
The Chemco Company uses a highly toxic chemical in one of its manufacturing processes. It must have the product delivered by special cargo trucks designed for safe shipment of chemicals. As such,
Kroft Foods makes cheese to supply to stores in its area. The dairy can make 350 kilograms of cheese per day, and the demand at area stores is 205 kilograms per day. Each time the dairy makes cheese,
The Deer Valley Farm produces a natural organic fertilizer, which it sells mostly to gardeners and homeowners. The annual demand for fertilizer is 220,000 kilograms. The farm is able to produce
The Carpet Discount Store has annual demand of 10,000 metres of Super Shag carpet. The annual carrying cost for a metre of this carpet is $1.25, and the ordering cost is $300. The carpet manufacturer
The amount of denim used daily by the Southwest Apparel Company in its manufacturing process to make jeans is normally distributed with an average of 4000 metres of denim and a standard deviation of
In Problem 13-27, what level of service would a safety stock of 2000 metres provide?Problem 13-27The amount of denim used daily by the Southwest Apparel Company in its manufacturing process to make
The Paramount Paper company produces paper from wood pulp ordered from a lumber products firm. The paper company’s daily demand for wood pulp is normally distributed, with a mean of 9000 kilograms
Kelly’s Tavern serves Shamrock draft beer to its customers. The daily demand for beer is normally distributed, with an average of 20 liters and a standard deviation of 4 liters. The lead time
IM Systems (Problem 13-32) is considering purchasing monitors from a Canadian manufacturer instead of from a Taiwanese company that would guarantee a lead time of eight days. Determine the new
KVS Pharmacy fills prescriptions for a popular children’s antibiotic, amoxicillin. The daily demand for amoxicillin is normally distributed with a mean of 200 grams and a standard deviation of 80
Tara Kubiak is the office administrator for the Department of Management at Provincial University. The faculty uses a lot of printer paper and Tara is constantly reordering and frequently runs out.
The concession stand at the Minnewa High School stadium sells slices of pizza during boys’ and girls’ soccer games. Concession stand sales are a primary source of revenue for the high school
The Saki automobile dealer in the Ottawa area orders the Saki sport compact, which gets about 21 kilometers per liter of gasoline, from the manufacturer in Japan. However, the dealer never knows for
The emergency room of the community hospital in St. Gabriel has a receptionist, one doctor, and one nurse. The emergency room opens at time zero, and patients begin to arrive some time later.
Northern University and North-East University are located near each other, and the students at each university frequently date. The students at Northern University are debating how good their dates
A school board has instituted a series of standardized tests in math, history, English, and science that all high school students must pass with a grade of 70 before they are allowed to graduate and
The manager of the Medicine Hat police department motor pool wants to develop a forecast model for annual maintenance on police cars based on mileage in the past year and age of the cars. The
University administrators believe their first-year applications are influenced by two variables: tuition and the size of the applicant pool of eligible high school students in the province. The
The Pro Apparel company manufactures baseball-style caps with various team logos. The caps come in an assortment of designs and colours. The company has had monthly sales for the past 24 months as
The Dean of the College of Business at Tech University has initiated a fundraising campaign. One of the selling points she plans to use with potential donors is that increasing the
The Downtown Soccer Club has boys and girls travel soccer teams at all age levels up to 18 years old. The club has been successful and grown in popularity over the years; however, an obstacle to its
The Port of Halifax is considering an expansion of its container terminal. The port has experienced the following container throughput during the past 12 years, expressed as TEUs (i.e., 20 feet
Arrow Air is a regional airline that operates in Eastern Canada. It has collected data for the percentage of available seats occupied on its flights for four quarters€”(1)
Explain what the numerical value of the slope of the linear regression equation in Problem 12-30 means.Problem 12-30 Week Temperature (°C) (Litres Sold) 1 24 95 2 19 90 3 28 125 4 32 150 5 25 85 6.
Develop a linear trend line model for the first-year applications data at the university in Problem 12-32.a. Does this forecast appear to be more or less accurate than the linear regression forecast
The registrar at a local university believes that decreases in the number of first-year applications that have been experienced are directly related to tuition increases. They have collected the
Compute the coefficient of determination for the data in Problem 12-30 and explain its meaning.Problem 12-30 Temperature (°C) Week (Litres Sold) 24 95 19 90 28 125 4 32 150 25 85 27 115 7 29 110 33
The manager of Sarah€™s Ice Cream store needs an accurate forecast of the demand for ice cream. The store orders ice cream from a distributor a week ahead, and if too little is ordered the
A motorcycle dealer in the Ottawa area wants to be able to accurately forecast the demand for the Super Hog motorcycle during the next month. From sales records, the dealer has accumulated the data
The manager of the Trans-Canada Carpet outlet needs to be able to forecast accurately the demand for Soft Shag carpet (its biggest seller). If the manager does not order enough carpet from the carpet
During the past five months, the emergency room at the new Regional Hospital has observed the number of patients during two parts of every other week€”the weekend (Friday through Sunday)
The chairperson of the department of management at Tech University wants to forecast the number of students who will enroll in operations management next semester in order to determine how many

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