Purchasing And Supply Management 15th Edition P. Fraser Johnson, Anna Flynn - Solutions

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Would you expect the exponential distribution to be a good approximation of service times fora. Buying an airline ticket at the airport?b. Riding a merry-go-round at a carnival?c. Checking out of a hotel?d. Completing a midterm exam in your OSM class?
Define, in a practical sense, what is meant by an exponential service time.
In what way might the first-come, first-served rule be unfair to the customer waiting for service in a bank or hospital?
Which assumptions are necessary to employ the formulas given for Model 1?
What is the major cost trade-off that must be made in managing waiting line situations?
Distinguish between a channel and a phase.
How many waiting lines did you encounter during your last airline flight?
Cultural factors affect waiting lines. For example, fast checkout lines (e.g., 10 items or less)are uncommon in Japan. Why do you think this is so?
What other issues might Toshihiro consider when bringing the new assembly line up to speed?
How should the line be redesigned to operate at the target 300 units per day, assuming that no overtime will be used? What is the efficiency of your new design?-//
When it is running at maximum capacity, what is the efficiency of the line?
What is the daily capacity of the assembly line designed by the engineers?
The last two operations are the hardware and shock tests. To prepare for the hardware test, an operator inserts a memory card into the USB port containing software designed to test different components of the?
The next six steps of the assembly process involve a large number of simple operations performed by hand or with simple tools, such as electric screwdrivers.Typical operations involve snapping connectors together or attaching parts with small screws. All tools are hung by a cable above the
The second operator enters the bar codes on those components into a centralized computer system by scanning the bar codes with a hand-held scanning wand. On a shelf above the conveyor, portable computers display the operations that are performed at each station.
The first operator lays out the major components of a computer between two white lines on the conveyor.
A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25 and bar stools $20. Fixed cost for the firm is $20,000.a. If the sales mix is 1:1 (one chair sold for every bar stool sold), what is the break-even point in dollars of sales? In units of
Aldo Redondo drives his own car on company business. His employer reimburses him for such travel at the rate of 36 cents per mile. Aldo estimates that his fixed costs per year such as taxes, insurance, and depreciation are $2,052. The direct or variable costs such as gas, oil, and maintenance
Assume a fixed cost of $900, a variable cost of $4.50, and a selling price of $5.50.a. What is the break-even point?b. How many units must be sold to make a profit of $500.00?c. How many units must be sold to average $0.25 profit per unit? $0.50 profit per unit?$1.50 profit per unit?
A manufacturing process has a fixed cost of $150,000 per month. Each unit of product being produced contains $25 worth of material and takes $45 of labor. How many units are needed to break even if each completed unit has a value of $90?
A book publisher has fixed costs of $300,000 and variable costs per book of $8.00. The book sells for $23.00 per copy.a. How many books must be sold to break even?b. If the fixed cost increased, would the new break-even point be higher or lower?c. If the variable cost per unit decreased, would the
How would you characterize the most important difference for the following issues when comparing a facility organized with workcenters versus a continuous process?
Why might it be difficult to develop a manufacturing cell?
What is the essential requirement for mixed-model lines to be practical?
How do you determine the idle time percentage from a specific assembly-line balance?
What is the objective of assembly-line balancing? How would you deal with a situation in which one worker, although trying hard, is 20 percent slower than the other 10 people on a line?
What kind of layout is used in a physical fitness center?
Although financial data are sketchy, an estimate from a construction company indicates that adding bed capacity would cost about $100,000 per bed. In addition, the rate charged for the hernia surgery varies between about $900 and $2,000 (U.S. dollars), with an average rate of $1,300 per operation.
Now look at the effect of increasing the number of beds by 50 percent. How many operations could the hospital perform per day before running out of bed capacity? (Assume operations are performed five days per week, with the same number performed on each day.) How well would the new resources be
Develop a similar table to show the effects of adding operations on Saturday. (Assume that 30 operations would still be performed each day.) How would this affect the utilization of the bed capacity? Is this capacity sufficient for the additional patients?
How well is the hospital currently utilizing its beds?
A builder has located a piece of property that she would like to buy and eventually build on.The land is currently zoned for four homes per acre, but she is planning to request new zoning. What she builds depends on approval of zoning requests and your analysis of this problem to advise her. With
Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to their product line. The company is currently considering two options.The first is a small facility that it could build at a cost of $6 million. If demand for new products is low, the
Suppose that operators have enough training to operate both the bronze machines and the injection molding machine for the plastic sprinklers. Currently AlwaysRain has 10 such employees. In anticipation of the ad campaign described in Problem 11, management approved the purchase of two additional
In anticipation of the ad campaign, AlwaysRain bought an additional bronze machine. Will this be enough to ensure that enough capacity is available?
Suppose that AlwaysRain Irrigation’s marketing department will undertake an intense ad campaign for the bronze sprinklers, which are more expensive but also more durable than the plastic ones. Forecast demand for the next four years is YEARLY DEMAND 1 (IN 000S) 2 (IN 000S) 3 (IN 000S) 4 (IN
AlwaysRain Irrigation, Inc., would like to determine capacity requirements for the next four years. Currently two production lines are in place for bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle
United Research Associates (URA) had received a contract to produce two units of a new cruise missile guidance control. The first unit took 4,000 hours to complete and cost $30,000 in materials and equipment usage. The second took 3,200 hours and cost $21,000 in materials and equipment usage. Labor
Honda Motor Company has discovered a problem in the exhaust system of one of its automobile lines and has voluntarily agreed to make the necessary modifications to conform with government safety requirements. Standard procedure is for the firm to pay a flat fee to dealers for each modification
Jack Simpson, contract negotiator for Nebula Airframe Company, is currently involved in bidding on a follow-up government contract. In gathering cost data from the first three units, which Nebula produced under a research and development contract, he found that the first unit took 2,000 labor
Lazer Technologies Inc. (LTI) has produced a total of 20 high-power laser systems that could be used to destroy any approaching enemy missiles or aircraft. The 20 units have been produced, funded in part as private research within the research and development arm of LTI, but the bulk of the funding
You’ve just completed a pilot run of 10 units of a major product and found the processing time for each unit was as follows:a. According to the pilot run, what would you estimate the learning rate to be?b. Based ona, how much time would it take for the next 190 units, assuming no loss of
Lambda Computer Products competed for and won a contract to produce two prototype units of a new type of computer that is based on laser optics rather than on electronic binary bits.The first unit produced by Lambda took 5,000 hours to produce and required $250,000 worth of material, equipment
Johnson Industries received a contract to develop and produce four high-intensity longdistance receiver/transmitters for cellular telephones. The first took 2,000 labor hours and$39,000 worth of purchased and manufactured parts; the second took 1,500 labor hours and$37,050 in parts; the third took
You have just received 10 units of a special subassembly from an electronics manufacturer at a price of $250 per unit. A new order has also just come in for your company’s product that uses these subassemblies, and you wish to purchase 40 more to be shipped in lots of 10 units each. (The
A time standard was set as 0.20 hour per unit based on the 50th unit produced. If the task has a 90 percent learning curve, what would be the expected time of the 100th, 200th, and 400th units?
At first glance, the concepts of the focused factory and capacity flexibility may seem to contradict each other. Do they really?
What are some reasons for a plant to maintain a capacity cushion? How about a negative capacity cushion?
What is capacity balance? Why is it hard to achieve? What methods are used to deal with capacity imbalances?
Management may choose to build up capacity in anticipation of demand or in response to developing demand. Cite the advantages and disadvantages of both approaches.
What are some major capacity considerations in a hospital? How do they differ from those of a factory?
What are some capacity balance problems faced by the following organizations or facilities?a. An airline terminal.b. A university computing lab.c. A clothing manufacturer.
List some practical limits to economies of scale; that is, when should a plant stop growing?
What capacity problems are encountered when a new drug is introduced to the market?
Your boss would like you to suggest changes that could be made to the project that would significantly shorten it. What would you suggest?
Identify slack in the activities not on the project critical path.
Calculate the start and finish times for each activity and determine how many weeks is the minimum for completing the project. Find the critical set of activities for the project.
Draw a project network that includes all the activities.
Assume the network and data that follow:a. Construct the network diagram.b. Indicate the critical path when normal activity times are used.c. Compute the minimum total direct cost for each project duration based on the cost associated with each activity. Consider durations of 13, 14, 15, 16, 17,
Bragg’s Bakery is building a new automated bakery in downtown Sandusky. Here are the activities that need to be completed to get the new bakery built and the equipment installed.NORMAL CRASH EXPEDITING ACTIVITY PREDECESSOR TIME (WEEKS) TIME (WEEKS) COST/WEEK A — 9 6 $3,000 B A 8 5 $3,500 C A 15
The following CPM network has estimates of the normal time in weeks listed for the activities:a. Identify the critical path.b. What is the length of time to complete the project?c. Which activities have slack, and how much?d. Here is a table of normal and crash times and costs. Which activities
For the network shown:a. Determine the critical path and the early completion time in weeks for the project.b. For the data shown, reduce the project completion time by three weeks. Assume a linear cost per week shortened, and show, step by step, how you arrived at your schedule.
The home office billing department of a chain of department stores prepares monthly inventory reports for use by the stores’ purchasing agents. Given the following information, use the critical path method to determine
Here is a network with the activity times shown in days:a. Find the critical path.b. The following table shows the normal times and the crash times, along with the associated costs for each activity.If the project is to be shortened by four days, show which activities, in order of reduction, would
Here is a CPM network with activity times in weeks:
can be shortened to a minimum of one week each at a cost of $10,000 per week, which activities would you shorten to cut the project by four weeks?
through
cannot be shortened, but activities
and
activities:a. Draw the network diagram.b. Find the critical path.c. If activities
A construction project is broken down into the following
The R&D department is planning to bid on a large project for the development of a new communication system for commercial planes. The accompanying table shows the activities, times, and sequences required:a. Draw the network diagram.b. What is the critical path?c. Suppose you want to shorten the
Schedule the following activities using CPM:a. Draw the network.b. What is the critical path?c. How many weeks will it take to complete the project?d. Which activities have slack, and how much?
The following activities are part of a project to be scheduled using CPMa. Draw the network.b. What is the critical path?c. How many weeks will it take to complete the project?d. How much slack does activity B have?
Why would subcontractors for a government project want their activities on the critical path?Under what conditions would they try to avoid being on the critical path?
“Project control should always focus on the critical path.” Comment.
What are the underlying assumptions of minimum-cost scheduling? Are they equally realistic?
Which characteristics must a project have for critical path scheduling to be applicable? What types of projects have been subjected to critical path analysis?
Discuss the graphic presentations in Exhibit 2.4. Are there any other graphic outputs you would like to see if you were project manager?
What are some reasons project scheduling is not done well?
What was the most complex project that you have been involved in? Give examples of the following as they pertain to the project: the work breakdown structure, tasks, subtasks, and work package. Were you on the critical path? Did it have a good project manager?
How important is this customization to HD’s marketing strategy? What are HD’s order winner and qualifiers? Concisely describe HD’s operations and supply strategy
To keep things simple, HD has the dealer install virtually all these options. What would be the trade-off involved if HD installed these options at the factory instead of having the dealers install the options?
How many different bike configurations do you think are possible? Could every customer have a different bike? To make this a little simpler, what if HD had only two types of bikes, three handle bar choices, four saddlebag combinations, and two exhaust pipe choices? How many combinations are
What is meant by the expressions order winners and order qualifiers? What was the order winner for your last major purchase of a product or service?
Why does the “proper” operations and supply strategy keep changing for companies that are world-class competitors?
What are the major priorities associated with operations and supply strategy? How do you think their relationship to one another has changed over the years? It might be best to think about this relative to a specific industry. Personal computers would be a good industry to think about.
Can a factory be fast, dependable, and flexible; produce high-quality products; and still provide poor service from a customer’s perspective?
What factors account for the current resurgence of interest in OSM?
Look at the want ads in The Wall Street Journal and evaluate the opportunities for an OSM major with several years of experience.
11. What is the triple bottom line? How can supply influence sustainability performance in the organization?
10. What is the difference between performance benchmarking and process benchmarking?
9. Why would an organization want to “benchmark” its supply function? How would it do this?
7. What are the key metrics of supply performance?
1. How does value analysis differ from value engineering?
26. Is anyone buying it for less?
25. Will another dependable supplier provide it for less?
24. Do material, reasonable labor, overhead, and profit total its cost?
23. Are suppliers of the item being asked for suggestions to reduce cost?
22. Can cost of packaging be reduced?

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Purchasing And Supply Management 15th Edition P. Fraser Johnson, Anna Flynn - Solutions

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