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operations management
Operations Management A Supply Chain Process Approach 1st edition Joel D. Wisner - Solutions
What is the optimal order quantity?
What is the annual order cost?
What is the annual inventory carrying costand the relevant total annual inventory cost?
How many orders per year will Kathy make? How many days will there be, between orders?
What is the reorder point? What is Kathy’s optimal order policy?
Using the information in Problem 1, if Kathy’s carrying cost rate dropped by half, to 20 percent per year, how would this impact Problems 1 through 5?
Using the information in Problem 1, if Kathy’s order cost increased to $100, how does this impact Problems 1 through 5?
Find the economic order quantity and the reorder point for the following information: annual demand is 22,500 units, order cost is $70 per order, annual inventory carrying cost is $5 per unit, the order lead time is 10 days, and the business operates 300 days per year.
Calculate the EOQ for each of the three purchase prices. Which EOQs are valid?
Which purchasing alternative should Grebby take? What are the total annual inventory costs for the valid alternatives?
The Big Cheese Pizza Parlor buys lots of pizza boxes. They normally pay $1 per box when ordering from their supplier. Based on their annual forecast for pizza demand, their demand for boxes is estimated to be 10,000 units for the year. It costs $25 to place an order and their holding cost for boxes
Average demand is 2500 units per year, order cost is $50 per order, holding cost rate is 20 % of the purchase cost per unit per year, and the cost of one unit is $42. What is the total inventory cost per year? If a cost reduction per unit of $1 can be achieved by buying 1000 at a time, should the
The average demand is equal to 10 units per day, the order lead time is 7 days, and the standard deviation of the lead time demand is 4 units. If a 95 percent service level is desired, what is the reorder point?
Roy and Gayle€™s Fix-It Shop purchased a new automated inventory control software application, and they wanted to put ROPs on all of their purchased tools and supplies. After forecasting the demand for items for the upcoming year, they were ready to start calculating ROPs. Three of the
Phyllis was just hired as the new purchasing manager at Rich Furniture, and she decided to recalculate all of their ROPs, since she noticed that many of the suppliers’ delivery times varied substantially from one order to the next. Phyllis asked Mary Jane, her buyer, to recalculate the first one
What is the EOQ?
What is the optimal review period?
What is the target quantity or order-up-to-level? If there were 225 cat treats in inventory when the supplier visited, what would be the order size?
Tom uses a fixed review period inventory system in his store. He counts his inventory every 30 days and then makes an order. Ten days later his order shows up from the supplier. On one ordering occasion, he counts and finds 81 units in inventory. If the average daily demand is 10 units, the
Mennitt’s Bowlarama wants to determine their inventory management performance during their past year of operations. Calculate their inventory days of supply, days receivables outstanding, days payables outstanding, and cash-to-cash cycle time, and then assess their performance. Use the following
Use the Clark and Wright savings heuristic to determine an acceptable delivery route for the following network of customers, starting from location 1. Assume that any diagonal trip must pass through location 5. 40 25 mi. 22 mi. 27 mi. 20 mi. 23 mi. 23 mi. 35 mi.
Change the arrival rate at Josh’s Hot Dogs in question 9 above, to 14 customers per hour. What impact does this have on the queuing characteristics? What is the probability that there is more than one customer in the system, at any given time? Do you think he has an acceptable queuing system?Data
A company currently has produced 1,425,000 units, with a total defect level of 4,280. Each unit has a potential of 294 defects.a. What is his company’s DPMO?b. What is their Six Sigma operating level?c. The company’s goal is to reach a Six Sigma operating level of 6 for the next 1,000,000
A weighted supplier scorecard is shown below. Determine the total weighted score for the supplier. Use a 10-point scale. Note that excellent = 10, good = 8, fair = 6, poor = 4. Supplier Name:The Naylor Co. Item: Office supplies Weighted Rating (0- 10) Performance Weight Actual Ideal Criteria Score
Calculate the upper and lower control limits for the C chart. Plot the data on a C chart. Does the manufacturing process appear to be in control? Why/why not?
Calculate cÌ… and the sample standard deviation for the C chart. Over a 10-day period, a manufacturing company has counted the number of units not meeting design specifications. The findings are shown below. No. of No. of Rejects Rejects Day Day 5 10 4 10 2. 2. 6. 2.
Determine P̅ and σP. Error-checkers at the Whole Life Insurance Company checked 100 online applications per day for errors in the applications. The number of defective applications are shown below, for a 10-day period. Number Number Defective Defective Day Day 4 4 10 10 2.
After collecting and measuring a number of pizza delivery time samples, Lindi’s Pizzeria finds the mean of all the samples to be 27.4 minutes, with an average sample range of 5.2 minutes. They tracked four deliveries per hour for 18 hours to obtain their samples. a. Is this an example of
Find the 3-sigmaUCL and LCL for the mean and range charts. Plot the data. Does the process look to be in statistical control.Why /why not?
Find the 3-sigma UCL and LCL for the mean and range charts. Plot the data. Does the deli wait time process look to be in statistical control? Why/why not?
A machine operator has produced 500 units of a particular part, and has stated he has only had 4 units fail to meet the company’s one design specification. Is this good from a Six Sigma standpoint?
Given the information shown below, complete the part records for all parts. Also:a. Determine the minimum lead time to make Part A starting with no current inventories.b. Determine the amounts of each part required to make 100 Part A’s, starting with no current inventories.
Given the information shown below, complete the part records for all four parts. Use LFL order quantities for all parts. No safety stocks are required and there are no scheduled receipts. Beginning Leadtime (days) Inventory Part 2 12 40 1. 65 30
Complete the following MRP part record (note the lot size, lead time, and safety stock).
Complete the following MRP part record (note the lot size, lead time, and safety stock).
Determine the quantities of all parts required to make 100 Part A.
Determine the quantities of Parts B, C, and D required to make 50 Part A. Part Leadtime (days) D 3 2. 3.
Determine the minimum number of days to make a complete Part A, starting with no current inventories. Part Leadtime (days) D 3 2. 3.
What are ERP system application add-ons, and which ones are the most popular?
Josh’s Hot Dogs is a one-person hot dog stand, and normally gets about 10 customers per hour. Assuming that Josh can serve one customer in about 3 minutes, calculate the stand’s queuing characteristics. What is the probability that there is more than one customer in the system, at any given
What is the probability that more than 2 customers will arrive in an hour, when the mean arrival rate is 2 customers per hour and interarrival times are exponentially distributed?
Peggy’s Car Wash can service an average of 12 cars per hour. Given an average arrival rate of 8 customers per hour, use the Poisson distribution to calculate the probability that the car wash can handle the demand. How often would the car wash demand exceed 10 cars per hour? 15 cars per hour?
Using the information in Problem 5, what is the probability that less than 5 customers will arrive in an hour?Data from 5What is the probability that exactly 10 customers will arrive in an hour when the mean arrival rate is 20 customers per hour and interarrival times are exponentially distributed?
What is the probability that exactly 10 customers will arrive in an hour when the mean arrival rate is 20 customers per hour and interarrival times are exponentially distributed?
Given the following information, determine the optimal overbooking policy. The restaurant€™s capacity is 24 tables. The historic number of no-shows for a typical day along with the probability of occurrence is shown in the table below. The average profitability per table is $125 and the
Determine a consecutive days off schedule using the following daily worker requirement, and use part-time workers if needed. Th Su 9 6 Requirement 12 13 15 10 17 Answer: Th Su Requirement 12 13 15 10 17 Worker1 12 13 15 10 17 Worker 2 11 12 14 16 Worker 3 10 11 13 8. 15 10 Worker4 12 14 Worker5 10
Do you think the “office of the future” has any validity?
Using the work flow visualized video, describe the work flow you use when doing your homework assignments.
Explain why customers wait in line less time, when a snake line is used, instead of multiple queues.
A manufacturing assembly line has a demand for a specific part of 1200 parts per eight-hour day. It wants to design a lean system using containers. It takes about four hours to round-trip a container from one work center to the next and back again. They also want to hold 10 percent safety stock of
A lean system uses 22 containers, each of which can hold 15 parts. The lead time required to round trip one container through the system is normally 4 hours. The usual safety stock level is 10 percent.a) What is the maximum demand rate this system can accommodate?b) If demand is expected to be
A lean system has the following characteristics:Demand rate = 20 parts per hour; safety stock required = 5 percent; number of containers used = 14; lead time to replenish an order = 6 hours.a) Calculate the container size for the 14 containers.b) Calculate the maximum system inventories.c) If the
Boehm Compressors uses a lean production assembly line to make its compressors. In one assembly area, the demand is 100 parts per eight-hour day. It uses a container that holds eight parts. It typically takes about six hours to round-trip a container from one work center to the next and back again.
A listing of deliveries to be completed for the day are shown below. Assuming that the customers are ranked in proximity to one another (i.e., customer 4 is closer to customer 3 than customer 5 is), use the concurrent scheduler approach to assign deliveries to vehicles such that no deliveries are
Nikolai€™s Furniture Delivery business delivers to a set of customers as demand dictates. The current list of deliveries for the day is shown below. Assuming that the customers are ranked in proximity to one another (i.e., customer 4 is closer to customer 3 than customer 5 is), use the
Use the Cluster-first-route-second heuristic to determine acceptable total mileage delivery routes for two trucks (6 ton and 10 ton capacities) and the following network of customers with their shipping requirements, starting from location 1.Start with two tours: Tour 1€”1-5-4-1 and Tour
Using the following information and assuming that all of the automobiles arrived at the same time, use a Gantt chart and the critical ratio (CR) rule to prioritize jobs for processing. Determine the makespan , average flowtime , average queue time, average lateness, and average tardiness. Also
Using the job information in Problem 3, Construct a Gantt chart using the minimum slack per operation (MINSOP) rule to determine the job priority ranking at each machine as the jobs progress through the shop. Assume all jobs arrived simultaneously. Determine the makespan , average flowtime ,
Using the job information in Problem 3, Construct a Gantt chart using the critical ratio (CR) rule to determine the job priority ranking. Assume all jobs arrived simultaneously. Determine the makespan , average flowtime , average queue time, average lateness, and average tardiness. Also assume that
General Motors has a takt time of 8 minutes per unit—explain what this means? If the GM plant operated 24/7, how many units would be produced in one year?
How fast is the CNC milling machine for most of the tools featured in the video? How many different tools were featured?
During which years did Ford make their Model T? How many did they make?
Use the tasks shown and their precedence relationships to create the flow diagram. Determine the takt time and the minimum number of workstations, assuming and 8-hour workday and a required output of 50 units per day. Time Task Task (min.) Follows a 1.5 a d. a b, c, d f total 14.5 2. 3.
Assume that all of the jobs below arrived at the same time. Use a Gantt chart and the earliest due date (EDD) rule to prioritize the jobs. Determine the makespan , average flowtime , average queue time, average lateness, and average tardiness. Also assume that transfer times are zero. Due Dates
Using the information from Problem 1, balance the line and determine the efficiency, the total labor time per day, total work time per day, and the total idle time per day.Data from 1 Time Task Task (min.) Follows a 1.5 a d. a b, c, d f total 14.5 2. 3.
Using the information from Problem 1, and assuming that all of the automobiles arrived at the same time, use a Gantt chart and the shortest-process-time (SPT) rule to prioritize the jobs. Determine the due dates, the makespan , average flowtime , and average queue time. Assume that transfer times
Also using the information from Problem 1, calculate minimum takt time and the corresponding output per day. What is the efficiency, total labor time, total work time, and total idle time per day?
If the company runs two shifts and operates 16 hours per day, determine the takt time in seconds per unit if the required output is 4000 units per day.
The Grebski Auto Repair Shop uses a shop floor control system based on forward scheduling to determine auto completion dates for their customers, and to determine when to release a car to the shop for repairing. The control system generates a Gantt chart on a daily basis, along with a number of
For the following parts, determine part families and designate manufacturing cells for the part families. How many machines are required for your layout? Lathe Drill Mill Planer Sander Grinder Buffer Part Paint Saw 001 х 002 003 х х 004 х х х х 005 006 007 х х 008 х 009 х х 010
For the office layout shown in problem 13, assume a vertical move is 40 feet and horizontal move is 60 feet between adjacent departments. No diagonal movements are allowed. Using the daily trip information shown below, determine the current total footage traveled per day. Find a layout that is good
The Mary Kay Bakery has decided to arrange their processes such that an assembly operation can be used to increase their baked goods output. The processing activities are shown below, with the arrows indicating the activity sequence and precedence. The desired output per day is 120 units. The
Determine the closeness desirability for the office layout and the desirability matrix shown below. The desirability scale is: -3 = undesirable, 0 = unimportant, 1 = slightly important, 2 = important, and 3 = very important. Assume that the department sides must overlap to count. Additionally, see
Using the information in Problem 5, determine the minimum takt time and the corresponding output per day. What is the new efficiency and the new work time and idle time per day?
Given a total task time of 48 minutes, a desired output of 80 units per day and 2-eight hour shifts per day, what is the takt time in minutes per unit? What is the minimum number of workcenters ? If the assembly line is balanced with six workcenters , what is the efficiency?
For the office layout shown below, determine the closeness desirability rating using the closeness desirability matrix below. Treat the hallway as if it doesn€™t exist (i.e., the Production and Accounting Departments touch each other). The desirability scale used is: -1 = undesirable, 0 =
Using the following assembly line information, construct a flow diagram using arrows to indicate sequence and precedence, calculate the takt time, calculate the minimum number of workcenters , balance the line, and finally, calculate the line efficiency. What is the total worker idle time per day?
For the information given in problem 8, what would be the minimum takt time, if the firm put one worker at each machine (i.e., used 6 workcenters )? What would be the corresponding output per day? What would be the efficiency? What would be the total worker idle time per day?Data from 8 Task Time
The Iarussi Real Estate Agency has decided to analyze the flow of employees in their office to see if a more effective layout can be designed to reduce total daily walking distance. They have five departments in the office, positioned as shown below. Determine the total distance traveled per day
Determine the total movement cost per day, for the given process-focused facility, and then find a better layout. Each vertical or horizontal move between adjacent departments is $1, while a diagonal move is $2 as shown above. For a typical day, the number of material movements from one
The manager at Tram€™s Candy Shop wants to determine a consecutive days off schedule for its workforce. Use the following daily worker requirement, and use part-time workers if needed. м т Th Su F Requirement б 4 4 3 2 Answer: Th Su Requirement 6. 4 4 3. 2 Worker1 6 2 Worker 2 5 3 2
Given the following information, determine the optimal overbooking policy for a beauty salon. The salon€™s capacity is 8 patrons. The historic number of no-shows for a typical day along with the probability of occurrence is shown in the table. The average profitability per patron is $100
Why is information considered an intellectual asset?
Define the three key informational flows in most organizations.
Define information velocity and describe its importance to, and impact on the firm.
Define information volatility and describe its importance to, and impact on the firm.
What is information flow mapping used for, and what role do information audits play in flow mapping?
What did Lennox gain by integrating their WMS, TMS, and labor management systems?
Determine the minimum number of days to make Part A, starting with no current inventories. Part Leadtime (days) D 3 2. 3.
Using the product structure diagram and the other information shown below, complete the part records for each of the six items. Note that Part D appears in two places, but must be combined into one part record, and also note there are no scheduled receipts. Also, list the purchase and production
Using the information in problem 11, determine the minimum lead time to make Parts A, B, and C, assuming no current inventories. If 100 Part A’s are required, how many of each of the other parts are required, assuming no current inventories?
Try creating a Gantt chart of the park maintenance project using Excel.
Do you think a Six Sigma level of 4 is good? Explain.
Do you think Six Sigma training is necessary? Explain.
Does Jack Welch think Six Sigma will increase profits? Why/why not?
According to the video, will the use of Deming’s 14 points reduce costs?
What did Philip Crosby think quality management was all about?
Joseph Juran refers to “Big Q” in his interview—what was he referring to?
What are some of the training exercises discussed in the Six Sigma training video?
In the crash course on fishbone diagrams, how do they recommend picking something to fix?
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