Note: to use Excel, the data below can be copy/pasted into a spread sheet, saving you the time and irritation of doing it all yourself. Usually (though it can depend on your spread sheet software and computer) you can select a table below, then go to a cell in a spread sheet, and do a "paste special" (or sometimes just "paste" will work). You might have to fiddle around, but you can get it to work and it will eventually save you time over the weeks to come.

Questions:

1. Briefly describe how the operations function of a business has evolved from the Industrial Revolution to the Internet Revolution.
2. What is the difference between an Order Winner and an Order Qualifier? Give some examples of how you have (probably unconsciously) used these classifications when making your own purchases.

Problems:

1. You have just been hired to manage internal resources for a business that makes use of complex, internal paper forms that MUST always be on hand. The forms are used daily at rates (depending on how busy the business is that day) ranging from 0 to 150 per day. Once a re-stocking order (for these forms) is placed, because of their complexity, it can take from 3 days to 10 days to get the re-supply of 3000 forms printed and delivered. The business must never run out of forms but because they are complex, expensive and can change, it is important that only a minimum number are in stock (to guarantee a supply). Assume that when you start your new job there are 1200 forms in stock.

• How good of a job was the previous holder of your position doing?
• What should you do about ordering new forms?
• Where should you place the Kanban to satisfy the internal business policy?

NOTE: in the tables below sometimes the rightmost columns are not visible so you'll need to scroll right to see them. It helps if you expand this window. In the banner with VIEW and EDIT for the page, to the right there is a little "arrow head" that allows you to expand and contract the page. It's best to expand the page when looking at these problems. Sometimes, on other pages, when you're editing it's useful to shrink the page so that you can see and use the menu to the right (which will show up again in EDIT mode).

2. Omar Industries maintains production facilities in several locations around the globe. Average monthly cost data and output levels are given in the tables below.

• Calculate the labor and energy productivities of each facility.
• Calculate the multi-factor (total) productivity of each facility.
• If Omar needed to close one of the plants, which one would you choose? Why?

Units (in 1000s)	Cincinnati	Frankfurt	Guadalajara	Beijing
Finished Goods	10K	12K	5K	8K
Work-in-Progress	1K	2.2K	3K	6K

Costs (in $1000000)	Cincinnati	Frankfurt	Guadalajara	Beijing
Labor	3.5	4.2	2.5	.8
Material	3.5	3	2	2.5
Energy	1	1.5	1.2	.8
Transportation	.25	2.5	2	5
Overhead	1.2	3	2.5	.5
Labor Productivity
Energy Productivity
Total Productivity

3. Emily and her friends sell newspaper ads for the Bronc to supplement their income each year. From the data below, determine which person is the most productive (ads per hour) and which person produces the greatest ROI ($profit per $labor) under each of the possible scenarios A and B?

	Emily (Freshman)	Yunjue (Junior)	Tianqi (Sophomore)	Lauren (Senior)
# ads sold	100	50	200	35
# hours spent	40	15	85	10
total $revenue	$400	$200	$700	$150
Productivity: (ads per hour)
Productivity: ROI ($profit per $labor)

Scenario A: Seniors get paid $12/hr, Juniors $10/hr, Sophomores $8/hr, and Freshmen $6/hr.

Scenario B: All are paid equally.

Note: it doesn't matter to the answer what the pay is since they are all getting the same wage. Extra Credit: Why is that?

Remember: profit = revenue - costs. In this case, revenue is $ brought in from the sale of ads and costs are the labor costs for the salesperson.

4. Brian is the facilities manager for the Green Rider Open Market. The store is remodeling and wants to determine which brand of freezer to use for its frozen goods section. The freezers vary by size, cabinet type, accessibility, refrigerant, and inter-liner. These variables affect both the purchase cost and the operating cost (e.g., energy consumption) of each freezer. Currently, the cost of energy per kWh (kilo watt hour) is $0.10. Green Rider Market expenses capital purchases over a 3 year period. Given the cost and capacity data in the table below, calculate the productivity (i.e., the cubic feet of freezer space per $ cost) for each freezer alternative. Which freezer brand would you recommend to Brian?

	Alaskan Seal	BrrFrost	Cold Case	Deep Freeze
Purchase price	$3270	$4000	$4452	$5450
Energy consumption per day (kWh/day)	3.61	3.88	6.68	29.07
Volume (cu.ft.)	25	35	49	72
Productivity (cu.ft./$total cost)
Productivity ($total cost/cu.ft.)

Hint: calculate daily energy consumption, daily energy cost, daily purchase cost (for 3 yr period), total cost (sum of daily energy and purchase costs)