Supply Chain Management problems

Problem 1: Management Ratios (10 points) You are CEO of a fast food restaurant and have just received the financial statements for the year. Use this data to calculate the values in parts a-e below. Total Revenue Annual Credit Sales Cost of Goods Sold Total Operating Expenses Interest Expense Income Tax Expense Net Income $21,025,200 $9,890,500 $10,027,700 $2,200,200 $981,200 $1,891,800 $5,924,300 Total Cash Average Accounts Receivable Average Inventory Total Assets Total Liabilities Total Stockholders' Equity $866,000 $2,441,500 $51,100 $32,811,200 $39,069,600 $6,258,400 Days Sales Outstanding Payables Period 33 days 30 days a) Calculate the receivables turnover ratio (2 points). b) Calculate the inventory turnover (2 points). c) Calculate the asset turnover (2 points). d) Calculate the days of supply (2 points). e) Calculate the cash conversion cycle (Hint: use your answer from part d for the Days inventory) (2 points). Problem 2: Line Balancing (6 points) A circuit board manufacturer has a production time of 10 hours per day. The plant manager needs the operation to make 300 circuit boards per day. The processes of the assembly line have the following dependencies: Task Predecessor none none E Average Time (in minutes) 2.0 1.5 1.5 1.0 1.0 2.0 A, C B, D a) Compute the required cycle time for the line (in minutes). (2 points) b) What is the theoretical minimum number of workstations? (2 points) c) Draw the precedence diagram. (2 points) Problem 3: Workstation Assignment (9 points) A product has a required cycle time of 100 seconds and the following precedence diagram. Task A 50 sec Task C 50 sec Task F 90 sec Task G 50 sec Task B 10 sec Task D 10 sec Task E 20 sec a) Assign tasks to workstations using the most following tasks" heuristic rule to break any ties. Show which tasks are assigned to each workstation (5 points). b) Calculate the efficiency of the assembly line (2 points). c) Calculate the idle time (in seconds) incurred for each unit produced on the assembly line (2 points)