$.$ OM Reasoning $/$ Basics $/$ NCC Case $($Max $50$ points$)$: Questions can require independent thinking.

$1.$ Operations Reasoning: $(15$ points$)$ Answer ONLY TWO of the following Agree$/$Disagree questions,

provide at least one rationale supporting the statement and one rational opposing it$.$ Also, whenever

applicable, highlight specifically where in OM$7011($lecture content, assignments$)$ or on the web were

your supporting or opposing rationales discussed.

a$.$ With NO $($zero$)$ variability, OM$7011$ supported the notion that Average Waiting Line in Queue Tq

will be zero.

b$.$ The problem of quoting a fixed delivery lead time $($or project completion time$)$ to customers can be

modeled as a Newsvendor decision when the actual delivery lead time $($or project completion time$)$ is

uncertain and there are costs for either overquoting or underquoting the delivery lead $($project

completion$)$ time.

c$.$ Process Capability is always best defined using Upper Specification Limit USL, the Lower

Specification Limit LSL$,$ and the estimated process standard deviation, $.$

d$.$ TPS Lean and Six Sigma are quite similar because they both focus on achieving high quality and on

improving operations systems.

$2.(10$ points$)$ OM Intro: In the How OM Can Help submodule, we mentioned three things: $1.$ Balancing

trade$-$offs between performance measures, $2.$ Moving to Pareto Frontier by Eliminating Inefficiencies,

and $3.$ Process Redesign $/$ Improvement. Give specific examples from this OM$7011$ course where we

applied or illustrated each of these three things. If you find that we did not illustrate any of these things,

explain how we might do so in future versions of OM$7011?$

Page $2$ of $4$

$3.(*15$ points$)$ Little$$s Law: Val d$$OM is a legendary village for winter sports in the French Alps. Given

its enormous popularity among French, Swiss, German, Austrian, and Italian skiers, the $1,200$ beds in

the village are always booked in the winter season. On average, skiers stay in Val d$$OM for $10$ days.

A study done by the French office of A$.$ D$.$ Little has shown that skiers spend on average $$110$ per

person on the first day and $$88$ per person on each additional day in local restaurants. The study also

forecasts that $$ due to increased hotel prices and other issues $$ the average length of stay for an

upcoming season will be reduced to $5$ days. If the ski lodge remains at full capacity throughout the

season, what will be the percentage change in the amount that all the skiers spend in a typical day in

local restaurants compared to the last year $($when skiers still stayed for $10$ days$)?$ Show you work $/$

calculations to support your choice; these supporting calculations are required.

a$)$ Spending would decrease by $10\%$

b$)$ Spending would remain unchanged

c$)$ Spending would increase by $10\%$

d$)$ Spending would increase by $>20\%$

e$)$ None of the above

$4.(*10$ points$)$ NCC case: Consider the image alongside

$->$ of a slide from a presentation on the National

Cranberry Cooperative case. What do you think the

slide seeks to communicate? Mention $/$ explain at least

three key ideas from this slide, each of which are

conceptually distinct.

II$.$ Process Analysis$($Max $25$ Points$)$: Comfy Shoes Inc. builds shoes tailored to meet each individual

customer$$s needs. Customers who visit the downtown offices of Comfy Shoes in Cincinnati can choose

one or more of the following four custom$-$tailoring services. Customers receive their shoes in the mail

within a week of their initial visit.

Service Description Time Resource used

A$.$ Walking Basics Take measurements for basic

walking shoes.

$12$ min. $1$ attendant

B$.$ Walking Plus Choose specific design $($e$.$g$.$ material,

color selection$)$

$12$ min. $1$ attendant

C$.$ Running Basics Take measurements for tailor$-$made

running shoes

$10$ min. $1$ attendant

D$.$ Running Adv Consult physical therapist and obtain

precise needs for running shoes.

Also choose specific design.

$40$ min. $1$ attendant

The company offers the following packages to their customers:

$1.$ Package $1$: Includes only Walking Basics $($Service A$)$

$2.$ Package $2$: Includes Walking Basics and Walking Plus $($Services A and B$).$

$3.$ Package $3$: Walking Basics, Walking Plus and Running Basics $($Services A$,$ B and C$).$

$4.$ Package $4$: All four services $($A$,$ B$,$ C$,$ and D$)$

Customers of Comfy Shoes visit the store at a constant rate $($you can ignore any effects of variability$)$ of $20$

customers per day. Of these customers, $45\%$ buy Package $1,10\%$ buy Package $2,20\%$ buy Package $3$ and

$25\%$ buy Package $4.$ The mix does not change over the course of the day. The store operates $12$ hours a day.

$1.$ Implied Utilization: $(10$ points$)$ In order to know how busy each attendant is and determine which

resource $/$ service will have the highest utilization, calculate the implied utilization of each resource in the

table below; use empty space in the right$-$side of the table to show any intermediate calculations.

Page $3$ of $4$

Resource $/$ Service Implied

Utilization

Supporting Notes, if any, for Implied Utilization Calculation

A$.$