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operations management
Operations Management Creating Value Along the Supply Chain 1st Canadian Edition Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi - Solutions
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 destination. Net Road then computes the cost and time of the trip and determines the bid it should make for
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 at least an average truck load capacity of 85%. Does this load capacity requirement significantly
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, NetRoad has received shipping requests from 12 customers. The following table shows the distance
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 the downtown area with stores so that one is virtually always in sight of a potential or current
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 Souls. County General is (on average) 10 minutes away from Tech, Memorial is 20 minutes away, 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 eight weeks during July and August. Campers come for a one-week period, during which time they live in
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 to make ceramic tiles. After university they started a tile manufacturing firm called Mosaic Tiles,
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 company is $2200; the cost of holding 1 meter of paper in inventory is $0.08 per year. Determine 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, ordering (and delivery) costs are relatively high, at $3600 per order. The chemical product is packaged
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, it costs $175 to set up the production process. The annual cost of carrying a kilogram of cheese in
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 305,000 kilograms annually. The cost to transport the fertilizer from the plant to the farm is $620 per
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 normally charges the store $8 per metre for the carpet. However, the manufacturer has offered a
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 600 metres. The lead time required to receive an order of denim from the textile mill is a constant
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 jeans is normally distributed with an average of 4000 metres of denim and a standard deviation of 600
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 and a standard deviation of 1900 kilograms. Lead time is eight days. Determine the reorder point if
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 required to receive an order of beer from the local distributor is 12 days. Determine the safety stock
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 reorder point given this lead time and identify the factors that would enter into the decision to change
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 grams. The vendor for the pharmaceutical firm that supplies the drug calls the drugstore’s
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. She orders the paper from the university central stores. Several faculty have determined that the
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 athletic programs, so the athletic director wants to sell as much food as possible. Any pizza not sold
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 sure how many months it will take to receive an order once it is placed. It can take one, two, or
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. Patients arrive at the emergency room according to the following probability distribution:Time Between
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 are at North-East University. The Northern students have sampled several hundred of their fellow
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 receive their diploma. One school administrator believes the tests are unfair because they are
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 following data have been collected for eight different cars:a. Using Excel, develop a multiple regression
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 following data for an eight-year period show the tuition rates (per semester) and the sizes of 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 follows:Month
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 college€™s private endowment will improve its ranking among international business schools as published in
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 continued growth is a shortage of practice and game soccer fields in the area. The club has tried to
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 equivalent units, a standard unit of measure for containers).Year
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) January€“March, (2) April€“June, (3) July€“September, and (4)
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. 27 115 29 110 33 145 32 130 10 18 100
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 developed in Problem 12-32? Justify your answer.b. Compute the correlation coefficient for the
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 following enrollment and tuition data for the past decade:a. Develop a linear regression model for these
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 33 145 32 130 10 18 100
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 store loses business. If it orders too much, it must be thrown away. The manager believes that a
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 in the following table for the past year.Month
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 mill, customers will buy their carpets from one of the outlet ’s many competitors. The manager
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) and weekdays (Monday through Thursday). They typically experience greater patient traffic on weekends
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 sections to schedule. The chair has accumulated the following enrollment data for the past eight
The manager of the Excom Service Station wants to forecast the demand for unleaded gasoline next month so that the proper number of litres can be ordered from the distributor. The owner has accumulated the following data on demand for unleaded gasoline from sales during the past 10 months:
The University Bookstore is owned and operated by Tech University through an independent corporation with its own board of directors. The bookstore has three locations on or near the Tech University campus. It stocks a range of items, including textbooks, trade books, logo apparel, drawing and
In Exhibit S11.4, shipments are prohibited from Kansas City to Chicago because of railroad construction. Once the rail construction is completed, what will be the effect on the optimal shipping routes?Exhibit S11.4 Insert Formulas Data Home Page Layout Review View Acrobat * Cut a Copy Format
Systems Unlimited sells personal computers to universities and colleges on the West Coast and ships them from three distribution warehouses. The firm is able to supply the following numbers of computers to the universities by the beginning of the academic year:Distribution Warehouse
In Problem S11-8, the Samuel McGregor Brewing Company management has negotiated a new shipping contract with a trucking firm between its Moncton brewery and its distributor in Ontario that reduces the shipping cost per barrel from $0.80 per barrel to $0.55 per barrel. How will this cost change
The Samuel McGregor Brewing Company has breweries in three cities; the breweries can supply the following numbers of barrels of draft beer to the company€™s distributors each month:Brewery
In Problem S11-6, what would be the effect on the optimal solution if there were no shortage of rental trucks at the North Bay outlet?Problem S11-6The Carry-Haul Truck Rental firm has accumulated extra trucks at three of its truck leasing outlets, as shown:Leasing Outlet
The Carry-Haul Truck Rental firm has accumulated extra trucks at three of its truck leasing outlets, as shown:Leasing Outlet Extra Trucks1. Toronto ..............................................
A manufacturing firm produces diesel engines in four cities€”Hamilton, Oshawa, Oakville, and Windsor. The company is able to produce the following numbers of engines per month:Plant
Apples are grown, picked, and then processed and packaged at distribution centres in Mississauga, Niagara Falls, and Simcoe. These centres supply apples to markets in Toronto, Hamilton, Montreal, and Windsor. The following table shows the shipping costs per truckload ($100s), supply, and
In Problem S11-1, what would be the effect of a reduction in production capacity at the Hamilton location from 310 tons to 260 tons per week?Problem S11-1Steel mills in three cities produce the following amounts of steel:Location
Steel mills in three cities produce the following amounts of steel:Location Weekly Production (tons)A. Richmond ...................................... 180B. Longueuil
Discuss some of the disadvantages of North American companies using Chinese suppliers that might drive them to near-shore their supply chains.
Describe the global supply and distribution channels of retail companies like Hudson’s Bay and Sears. What are some of their problems?
Solve Problem 3-9 in Chapter 3 to construct a c-chart to monitor late order deliveries at the Victoria Bread Company.Problem 3-9The Victoria Bread Company daily delivers multiple orders by truck from its regional distribution centre to stores in the T&T Supermarket chain. One measure of its
The Ashton Furniture Company manufactures coffee tables and chests of drawers. Last year the company€™s cost of goods sold was $3.7 million, and it carried inventory of oak, pine, stains, joiners, and brass fixtures; work-in-process of furniture frames, drawers, and wood panels; and
The RX Drug Company manufactures over-the-counter and prescription drugs. Last year the company’s cost of goods sold was $470 million. It carried average raw material inventory of $17.5 million, average work-in-process of $9.3 million, and average finished goods inventory of $6.4 million. The
The Farmer€™s Bank of Medicine Hat is planning to install a new computerized accounts system. Bank management has determined the activities required to complete the project, the precedence relationships of the activities, and activity time estimates as shown in the following
The following table shows the probabilistic activity time estimates for the CPM/PERT network in Problem 9-9.Determine the following:a. Expected activity timesb. Earliest start and finish timesc. Latest start and finish timesd. Activity slacke. Critical pathf. Expected project duration and standard
The following table provides the information necessary to construct a project network and project crash data.a. Construct the project network.b. Determine the maximum possible crash time for the net-work, and crash the network the maximum amount possible.c. Compute the normal project cost and the
The Centre for Information Technology at Provincial University has outgrown its office in Bates (B) Hall and is moving to Allen (A) Hall, which has more space. The move will take place during the three-week break between the end of summer semester and the beginning of fall semester. Movers will be
The Ontario Ministry of Transportation is undertaking a construction project to widen a large section of high-way near Ottawa, which includes the construction of a number of new bridges, interchanges, and overpasses. The first step in the project is the appointment of a project manager and the
The Carriage Auto Parts Company near Halifax, Nova Scotia, is a direct supplier for the nearby Sigma auto manufacturing plant. In order to gain a competitive advantage and meet quality requirements by its customer, Carriage has undertaken a project to achieve ISO/TS 16949 registration. TS 16949
Nite-Site, Inc., manufactures image intensification devices used in products such as night-vision goggles and aviator’s night-vision imaging systems. The primary customer for these products is the Canadian military. The military requires that learning curves be employed in the bid process for
Jericho Vehicles manufactures special-purpose all-terrain vehicles primarily for the military and government agencies in Canada and for foreign governments. The company is planning to bid on a new all-terrain vehicle specially equipped for desert military action. The company has experienced an 87%
How has the increased emphasis on quality improvement affected human resources management in Canada?
How successful have companies in Canada been in adapting new trends in job design that mostly have originated in Japan?
When conducting a work sampling study, how can the number of observations required by the study be reduced?
Puff €˜n€™ Stuff Services is a small company that assembles mailings for clients in the Vancouver area. Different-size envelopes are stuffed with various items such as coupons, advertisements, political messages, and so on, by a staff of workers, who are paid on a piece-rate
When is work sampling a more appropriate work-measurement technique than time study?
The Konishi Electronics Company manufactures computer microchips. A particular job that has been under analysis as part of a quality-improvement program was the subject of a time study. The time study encompassed 20 job cycles, and the results include the following cumulative times and performance
Data Products, Inc., packages and distributes a variety of personal computer-related products. A time study has been conducted for a job packaging CD-Rs for shipment to customers. The job requires a packager to place 20 disks in a plastic bag, close the bag with a twist tie, and place the filled
The associate dean of the college of business at Poly has succumbed to faculty pressure to purchase a new fax machine, although she has always contended that the machine would have minimal use. She has estimated that the machine will be used only 20% of the time. Now that the machine has been
The head of the department of management at Local University has noticed that the four secretaries in the departmental office seem to spend a lot of time answering questions from students that could better be answered by the university advising office, by faculty advisors, or simply from the
Sweats and Sweaters is a small chain of stores specializing in casual cotton clothing. The company currently has five stores in British Columbia and Alberta, and it wants to open a new store in one of four new mall locations in the Greater Vancouver area. The company has hired a consulting firm to
Maureen Desjardins is designing the layout for a new business in town, The Collegiate Spa. From visiting spas in neighbouring towns, she has compiled the following data on movement between spa activities. Help Maureen determine where to locate each activity on a 2 × 3 grid so that
Marillion Hospital is building a satellite clinic in the Lakeview area of Regina, Saskatchewan. The design committee has collected data on patient movement from similar facilities in hopes of making the new facility more efficient and customer-friendly.a. Calculate the non-adjacent loads for the
Flying Flags is opening a new theme park in southern Alberta. The park will have seven main attractions: (a) Animal kingdom, (b) Broadway shows, (c) Carousel and other kiddie rides, (d) Daredevil roller coasters, (e) Eating places, (f) Flying machines, and (g)
What factors make the southern Alberta region an attractive location for service and manufacturing businesses?
What location factors make small cities and towns in southern Ontario attractive to companies?
Exotech Computers manufactures computer components such as chips, circuit boards, motherboards, keyboards, LCD panels, and the like and sells them around the world. It wants to construct a new warehouse/distribution center in Asia to serve emerging Asian markets. It has identified sites in
Local University is going to construct a new student center and athletic complex that will include a bookstore, post office, theaters, market, mini-mall, meeting rooms, swimming pool, and weight and exercise rooms. The university administration has hired a site selection specialist to identify the
Arsenal Electronics is going to construct a new $1.2-billion semiconductor plant and has selected four cities in Ontario as potential sites. The important location factors and ratings for each town are as follows.Recommend a site based on these location factors and ratings. Scores (0 to 100)
Herriott Hotels, Inc. wants to develop a new beach front resort along the coast of Nova Scotia. A number of sites are available, and the hotel chain has narrowed the choice to five locations. They have graded their choices according to the weighted criteria shown as follows.Recommend a resort site
Robin Ayanso has recently accepted a new job in Montreal and has been hunting for a condominium to purchase. She has compiled a list of five possible condominium complexes that she could move into. The following table indicates the weighted criteria that Robin intends to use in her decision-making
The city of London, Ontario, operates three hospitals and a number of clinics in its network. It is planning to open a new wellness center and clinic facility that focuses on geriatric clients in one of four suburbs. The following table shows the weighted criteria for each location.Recommend a site
Local University in Problem S7-3 is attempting to locate the best site for a new student center and athletic complex. The university administration would like to know what the best location is relative to the four main concentrations of student housing and classroom activity on campus. The
Purolator wants to build a new distribution center in Regina, Saskatchewan. The center needs to be in the vicinity of uncongested Trans Canada Highway and Ring Road interchanges, and the Regina International Airport. The coordinates of these three sites and the number of weekly packages that flow
Mega-Mart, a discount store chain, wants to build a new superstore in the southwest area of the province near four small towns with populations between 8000 and 42,000. The coordinates (in kilometres) of these four towns and the market population in each are as follows:Determine the best site using
Home-Base, a home improvement/building supply chain, is going to build a new warehouse facility to serve its six stores. The coordinates of the stores (in kilometres), using the headquarters of the company as the origin (0, 0) of a set of coordinates, and the annual truckloads that supply each
An army division in Afghanistan has five troop encampments in the desert. The division leaders want to determine the best location for a supply depot to serve the camps. The (x, y) coordinates (in kilometres) of the camps, A, B, C, D, and E, and the daily amount of supplies (in tonnes) required at
The principles of scientific management were not adopted in Japan during the first half of the 20th century as they were in North America and other Western nations. Speculate as to why this occurred.
How do service layouts differ from manufacturing layouts? Give an example of a well-designed service layout and an example of a poorly-designed layout.
Visit a local McDonald’s, Harvey’s, and Taco Bell (or similar establishments). How do their layouts differ? Which appears to be most efficient? Why?
In Problem S7-17, suppose the division commanders are limited to three possible sites for the supply depot because of airfield locations and enemy troop concentrations. The coordinates (in kilometres) of these three potential sites are Site 1 (400, 250), Site 2 (100, 200), and Site 3 (200, 500).
An alternative airplane design is given here. Follow the assembly instructions and test the airplane. Are the instructions clear? Compare the performance of this airplane design with the one described in Problem 4.1. Which plane was easier to construct? How would you improve the design of this
Read about issues in outsourcing from a search on the Web. Then, look at the website of a company that you buy from to see where their products are made.
Construct a process flowchart of a process with which you are familiar. Identify bottlenecks, potential failure points, and opportunities for improvement.
Patricia Zell, a dollmaker from Regina, SK, is interested in the mass marketing and production of a ceramic doll of her own design called Tiny Trisha. The initial investment required for plant and equipment is estimated at $25,000. Labour and material costs are approximately $10 per doll. If the
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