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Operations Management: Sustainability And Supply Chain Management 13th Edition Jay Heizer; Barry Render; Chuck Munson - Solutions
• • 12.47 Metro hypermarket in Kuwait supplies juice boxes from a manufacturer in Saudi Arabia. Daily demand is almost constant at 100 boxes per day. The lead time for boxes delivery is normally distributed with a mean of 5 days and a standard deviation of 2 days. The hypermarket has a 95%
• • 12.46 Chicago’s Hard Rock Hotel distributes a mean of 1,000 bath towels per day to guests at the pool and in their rooms.This demand is normally distributed with a standard deviation of 100 towels per day, based on occupancy. The laundry firm that has the linens contract requires a 2-day
• • 12.38 Given the following data on a hardware item stocked by Andreas Wieland’s paint store in Copenhagen, should the quantity discount be taken?• D = 2,000 units; S = $10; H = $1; P = $1• Discount price = $.75• Quantity needed to qualify for discount = 2,000 units
• • 12.35 Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual demand for this product is 5,000 units; carrying cost is $50 per unit per year; order costs for his company typically run nearly $30 per order; and lead time averages 10 days. (Assume
• 12.34 It takes approximately 2 weeks (14 days) for an order of steel bolts to arrive once the order has been placed. The demand for bolts is fairly constant; on the average, the manager, Michelle Wu, has observed that the hardware store sells 500 of these bolts each day. Because the demand is
• • 12.32 If the economic order quantity = 300, annual demand= 8,000 units, and order costs = $45 per order, what is the holding cost for P. S. Ravi Metalworks?
• 12.31 If D = 1,000 per year, S = $62.50 per order, and H = $.50 per unit per year, what is the economic order quantity for purchasing manager Soomin Park?
• • 12.25 Rocky Mountain Tire Center sells 20,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year.The purchase price is $20 per tire if fewer than 500 tires are ordered, $18 per tire if 500 or more—but
• 12.13 Atech Service sells professional cleaning machines and scouring agents. They deliver the scouring agents to customers on a fixed weekly schedule.The annual demand is 1,500 bottles, each with a value of $10.The fixed cost for each order placed at the supplier’s is $100. The lead time is
• 12.8 If D 5 8,000 per month, S 5 $45 per order, and H 5 $2 per unit per month,a) What is the economic order quantity?b) How does your answer change if the holding cost doubles?c) What if the holding cost drops in half?
The demand at Arnold Palmer Hospital for a specialized surgery pack is 60 per week, virtually every week. The lead time from McKesson, its main supplier, is normally distributed, with a mean of 6 weeks for this product and a standard deviation of 2 weeks. A 90% weekly service level is desired. Find
The daily demand for 52” flat-screen TVs at Sarah’s Discount Emporium is normally distributed, with an average of 5 and a standard deviation of 2 units. The lead time for receiving a shipment of new TVs is 10 days and is fairly constant. Determine the reorder point and safety stock for a 95%
Annual demand for notebook binders at Meyer’s Stationery Shop is 10,000 units. Brad Meyer operates his business 300 days per year and finds that deliveries from his supplier generally take 5 working days. Calculate the reorder point for the notebook binders.
18. Why would it be advantageous to supply a regional warehouse from the central warehouse using a fixed period system?
17. How are inventory levels monitored in retail stores?
16. When demand is not constant, the reorder point is a function of what four parameters?
15. What is “safety stock”? What does safety stock provide safety against?
13. Suggest how we can set the time between deliveries in a fixed period system.
11. What is meant by “service level”?
10. What should be considered if the order quantity is to be increased from the optimal to a discount point?
9. Even if we have substantial uncertainty in the parameters in the EOQ model, it is still quite a useful model. Discuss.
8. What are the advantages of cycle counting?
5. Explain the major assumptions of the basic EOQ model.
3. What is the implication of the Pareto principle?
1. Describe the four types of inventory.
Chris Ellis’s newsstand, just outside the Smithsonian subway station in Washington, DC, usually sells 120 copies of the Washington Post each day. Chris believes the sale of the Post is normally distributed, with a standard deviation of 15 papers. He pays 70 cents for each paper, which sells for
The Circuit Town store’s most popular item is six-packs of 9-volt batteries. About 150 packs are sold per day, following a normal distribution with a standard deviation of 16 packs. Batteries are ordered from an out-of-state distributor; lead time is normally distributed with an average of 5 days
The Circuit Town store in Example 12 sells about 10 digital cameras a day (almost a constant quantity).Lead time for camera delivery is normally distributed with a mean time of 6 days and a standard deviation of 1 day. A 98% service level is set. Find the ROP.APPROACH c Apply Equation (12-16) to
The average daily demand for Lenovo laptop computers at a Circuit Town store is 15, with a standard deviation of 5 units. The lead time is constant at 2 days. Find the reorder point if management wants a 90% service level (i.e., risk stockouts only 10% of the time). How much of this is safety
Chris Beehner Electronics stocks toy remote-control drones. Recently, the store has been offered a quantity discount schedule for these drones. This quantity schedule was shown in Table 12.2. Furthermore, setup cost is $200 per order, annual demand is 5,200 units, and annual inventory carrying
Nathan Manufacturing, Inc., makes and sells specialty wheels for the retail automobile aftermarket.Nathan’s forecast for its wire wheels is 1,000 units next year, with an average daily demand of 4 units.However, the production process is most efficient at 8 units per day. So the company produces
An Apple store has a demand (D) for 8,000 iPhones per year. The firm operates a 250-day working year.On average, delivery of an order takes 3 working days, but has been known to take as long as 4 days. The store wants to calculate the reorder point without a safety stock and then with a one-day
Management in the Sharp, Inc., examples underestimates total annual demand by 50% (say demand is actually 1,500 needles rather than 1,000 needles) while using the same Q. How will the annual inventory cost be impacted?APPROACH c We will solve for annual costs twice. First, we will apply the wrong
Sharp, Inc. (from Examples 3 and 4) wants to determine the combined annual ordering and holding costs.APPROACH c Apply Equation (12-5), using the data in Example 3.
Sharp, Inc. (in Example 3) has a 250-day working year and wants to find the number of orders (N) and the expected time between orders (T).APPROACH c Using Equations (12-2) and (12-3), Sharp enters the data given in Example 3.
Sharp, Inc., a company that markets painless hypodermic needles to hospitals, would like to reduce its inventory cost by determining the optimal number of hypodermic needles to obtain per order.APPROACH c The annual demand is 1,000 units; the setup or ordering cost is $10 per order; and the holding
Cole’s Trucks, Inc., a builder of high-quality refuse trucks, has about 5,000 items in its inventory. It wants to determine how many items to cycle count each day.APPROACH c After hiring Matt Clark, a bright young OM student, for the summer, the firm determined that it has 500 A items, 1,750 B
Silicon Chips, Inc., maker of superfast DRAM chips, wants to categorize its 10 major inventory items using ABC analysis.APPROACH c ABC analysis organizes the items on an annual dollar-volume basis. Shown below (in columns 1–4) are the 10 items (identified by stock numbers), their annual demands,
Explain and use the quantity discount model
Explain and use the EOQ model for independent inventory demand
Explain and use cycle counting
Discuss important issues in office layout
LO 9.2 Define the objectives of retail layout
LO 9.3 Discuss modern warehouse management and terms such as ASRS, cross-docking, and random stocking
LO 9.4 Identify when fixed-position layouts are appropriate
LO 9.5 Explain how to achieve a good process-oriented facility layout
LO 9.6 Define work cell and the requirements of a work cell
LO 9.7 Define product-oriented layout
LO 9.8 Explain how to balance production flow in a repetitive or product-oriented facility
Walters Company management wants to arrange the six departments of its factory in a way that will minimize interdepartmental material-handling costs. They make an initial assumption (to simplify the problem) that each department is 20 × 20 feet and that the building is 60 feet long and 40 feet
Boeing wants to develop a precedence diagram for an electrostatic wing component that requires a total assembly time of 65 minutes.APPROACH c Staff gather tasks, assembly times, and sequence requirements for the component in Table 9.2 TABLE 9.2 Precedence Data for Wing Component TASK A BCDEF HG I
On the basis of the precedence diagram and activity times given in Example 2, Boeing determines that there are 480 productive minutes of work available per day. Furthermore, the production schedule requires that 40 units of the wing component be completed as output from the assembly line each day.
Boeing wishes to calculate the efficiency and idle time for Example 3.APPROACH c Equation (9-4) and (9-5) are applied.
8. What are the advantages and disadvantages of work cells?
9. What are the main requirements of work cells?
10. What are the two major trends influencing office layout?
11. What are the key factors that should be considered when designing a hospital layout?
12. What layout innovations have you noticed recently in retail establishments?
13. What are the variables that a manager can manipulate in a retail layout?
15. How does automatic identification work in a warehousing system?
16. What information is necessary for random stocking to work?
17. Explain the concept of cross-docking.
18. What is a heuristic? Name several that can be used in assemblyline balancing.
Aero Maintenance is a small aircraft engine maintenance facility located in Wichita, Kansas. Its new administrator, Ann Daniel, decides to improve material flow in the facility, using the process layout method she studied at Wichita State University. The current layout of Aero Maintenance’s eight
• • 9.2 A manufacturing firm in Saudi Arabia has four work centers arranged in the following order:Plan A (Existing Layout).The number of workpieces moved between the four work centers are shown in the table below. The cost to move 1 work piece for 1 meter is Saudi Riyal 1.a) Compute the cost
• 9.3 Three departments—milling (M), drilling (D), and sawing (S)—are assigned to three work areas in Victor Berardis’s machine shop in Kent, Ohio. The number of workpieces moved per day and the distances between the centers of the work areas, in feet, followIt costs $2 to move 1 workpiece
• • 9.5 A job shop in the new industrial area of Six of October, Egypt, wants to arrange four work centers to minimize the interdepartmental material-handling cost. The flow and the current layout are shown below.a) What is the “load * distance,” or “movement cost,” of the current
• • • 9.7 Reid Chocolates (see Problem 9.6) is considering a third layout, as shown below. Evaluate its effectiveness in tripdistance feet. Kitchen layout #3 Walking distance in feet Refrig. Counter Sink 1 (2) (3) 8 Storage 12 10 8 14 Stove (5)
• • • 9.8 The National Library of China consists of four major sections, each occupying different floors of a seven-storey building. A study shows that the average total distance covered by visitors per day among different sections of the library is around 1,500 km. The following new layout
• • • 9.9 Reid Chocolates (see Problem 9.6) has yet another layout it wishes to consider. Layout 5, which follows, has what total trip distance? 12 Kitchen layout #5 Walking distance in feet Refrig. 4 Counter Stove (2) 3 4 5) 13 Sink Storage 3 4 12
• • 9.10 A large equipment manufacturer uses five adjacent work centers to manufacture its equipment. The distance between any two adjacent work centers is 100 meters. The number of daily trips between the different work centers is given below:Find the best layout that will minimize the total
• • 9.17 Tailwind, Inc., produces high-quality but expensive training shoes for runners. The Tailwind shoe, which sells for $210, contains both gas- and liquid-filled compartments to provide more stability and better protection against knee, foot, and back injuries.Manufacturing the shoes
• • 9.18 The Mach 10 is a one-person sailboat manufactured by Creative Leisure. The final assembly plant is in Cupertino, California. The assembly area is available for production of the Mach 10 for 200 minutes per day. (The rest of the time it is busy making other products.) The daily demand
• • 9.19 Because of the expected high demand for Mach 10, Creative Leisure has decided to increase manufacturing time available to produce the Mach 10 (see Problem 9.18).a) If demand remained the same but 300 minutes were available each day on the assembly line, how many workstations would be
• • 9.21 Suppose production requirements in Solved Problem 9.2 (see page 428) increase and require a reduction in cycle time from 8 minutes to 7 minutes. Balance the line once again, using the new cycle time. Note that it is not possible to combine task times so as to group tasks into the
• • • 9.25 An assembly plant for the Blood Pressure RX, a portable blood pressure device, has 400 minutes available daily in the plant for the device, and the average demand is 80 units per day Final assembly requires 6 separate tasks. Information concerning these tasks is given in the
a) Draw a precedence diagram of this operationb) Given the demand, what is the cycle time for this operation?c) What is the theoretical minimum number of workstations?d) Assign tasks to workstations.e) What is the overall actual efficiency of the assembly line?• • 9.26 Given the following task,
1. What is the maximum number of applications per hour that can be handled by the present configuration of the process?Henry Coupe, the manager of a metropolitan branch office of the state department of motor vehicles, attempted to analyze the driver’s license-renewal operations. He had to
2. How many applications can be processed per hour if a second clerk is added to check for violations?Henry Coupe, the manager of a metropolitan branch office of the state department of motor vehicles, attempted to analyze the driver’s license-renewal operations. He had to perform several steps.
3. If the second clerk could be added anywhere you choose (and not necessarily to check for violations, as in Question 2), what is the maximum number of applications the process can handle?What is the new configuration?Henry Coupe, the manager of a metropolitan branch office of the state department
4. How would you suggest modifying the process to accommodate 120 applications per hour? What is the cost per application of this new configuration?Henry Coupe, the manager of a metropolitan branch office of the state department of motor vehicles, attempted to analyze the driver’s license-renewal
1. Identify the many variables that a hospital needs to consider in layout design. When Orlando’s Arnold Palmer Hospital began plans to create a new 273-bed, 11-story hospital across the street from its existing facility, which was bursting at the seams in terms of capacity, a massive planning
2. What are the advantages of the circular pod design over the traditional linear hallway layout found in most hospitals? When Orlando’s Arnold Palmer Hospital began plans to create a new 273-bed, 11-story hospital across the street from its existing facility, which was bursting at the seams in
3. Figure 9.21 illustrates a sample linear hallway layout. During a period of random observation, nurse Thomas Smith’s day includes 6 trips from the nursing station to each of the 12 patient rooms (back and forth), 20 trips to the medical supply room, 5 trips to the break room, and 12 trips to
4. Figure 9.22 illustrates an architect’s drawing of Arnold Palmer Hospital’s new circular pod system. If nurse Susan Jones’s day includes 7 trips from the nursing pod to each of the 12 rooms(back and forth), 20 trips to central medical supply, 6 trips to the break room, and 12 trips to the
5. The concept of servicescapes is discussed in this chapter.Describe why this is so important at Arnold Palmer Hospital, and give examples of its use in layout design. When Orlando’s Arnold Palmer Hospital began plans to create a new 273-bed, 11-story hospital across the street from its existing
6. As technology and costs change, hospitals continue to innovate.The reduced cost of computers means some hospitals have moved from a central computer at the nurse’s station to computers in the room or on carts (see photo in the Global Company Profile for Chapter 6). What changes in overall
1. What analytical techniques are available to help a company like Wheeled Coach deal with layout problems? When President Bob Collins began his career at Wheeled Coach, the world’s largest manufacturer of ambulances, there were only a handful of employees. Now the firm’s Florida plant has a
2. What suggestions would you make to Bob Collins about his layout? When President Bob Collins began his career at Wheeled Coach, the world’s largest manufacturer of ambulances, there were only a handful of employees. Now the firm’s Florida plant has a workforce of 350. The physical plant has
3. How would you measure the “efficiency” of this layout? When President Bob Collins began his career at Wheeled Coach, the world’s largest manufacturer of ambulances, there were only a handful of employees. Now the firm’s Florida plant has a workforce of 350. The physical plant has also
LO 9.1 Which of the following statements best describes office layout?a) Groups workers, their equipment, and spaces/offices to provide for movement of information.b) Addresses the layout requirements of large, bulky projects such as ships and buildings.c) Seeks the best personnel and machine
LO 9.6 For a focused work center or focused factory to be appropriate, the following three factors are required:a)b)c)
LO 9.7 Before considering a product-oriented layout, it is important to be certain of:a)b)c)d)
Describe labor-planning policies
LO 10.2 Identify the major issues in job design
LO 10.3 Identify major ergonomic and work environment issues
LO 10.5 Identify four ways of establishing labor standards
The time study of a work operation at a Red Lobster restaurant yielded an average observed time of 4.0 minutes. The analyst rated the observed worker at 85%. This means the worker performed at 85% of normal when the study was made. The firm uses a 13% allowance factor. Red Lobster wants to compute
Management Science Associates promotes its management development seminars by mailing thousands of individually composed and typed letters to various firms. A time study has been conducted on the task of preparing letters for mailing. On the basis of the following observations, Management Science
Andy Johnson Mfg., in Orlando, has asked you to check a labor standard prepared by a recently terminated analyst. Your first task is to determine the correct sample size. Your accuracy is to be within {5%and your confidence level at 95%. The standard deviation of the sample is 1.0 and the mean
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