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business
supply chain management 2nd
ISE Operations And Supply Chain Management 16th International Edition F. Robert Jacobs, Richard B. Chase - Solutions
Rent’R Cars is a multisite car rental company in the city. It is trying out a new “return the car to the location most convenient for you”policy to improve customer service. But this means that the company has to constantly move cars around the city to maintain required levels of vehicle
Sycamore Plastics (SP) is a manufacturer of polyethylene plastic pellets used as a raw material by manufacturers of plastic goods around the U.S. SP currently operates four manufacturing centers in Philadelphia, PA; Atlanta, GA; St. Louis, MO; and Salt Lake City, UT. The plants have different
A small manufacturing facility is being planned that will feed parts to three heavy manufacturing facilities. The locations of the current plants with their coordinates and volume requirements are given in the following table:Plant Location Coordinates (x, y) Volume (Parts per Year)Peoria 300, 320
DM Office Products (DMOP) is a wholesale supplier of office products with one facility in Pennsylvania. It has decided to build a new distribution warehouse in the state of New York to help serve the growing demand in that market. It has four major customers located in Buffalo, Syracuse, Albany,
Santa Cruz Bottling is a manufacturer of organic soft drinks on the coast of central California. Its products are enjoying a growing reputation and increased demand throughout the American Southwest. Because of the high cost of transporting soft drinks, it is considering a new plant to serve the
Relative to the U.S. distribution network, calculate the cost associated with running the existing system. Assume that 40 percent of the volume arrives in Seattle and 60 percent in Los Angeles and that the port processing fee for federal processing at both locations is $5.00 per CBM. Assume that
Consider the idea of upgrading the Los Angeles warehouse to include a distribution center capable of processing all the volume coming into the United States. Assume that containers coming into Seattle would be inspected by federal officials (this needs to be done at all port locations) and then
What should be done based on your analytics analysis of the U.S.distribution system? Should the new Los Angeles distribution center be added? Is there any obvious change that Grainger might make to have this option be more attractive?LO15-2
Is this strategically something that Grainger should do? What has the company not considered that may be important?LO15-2
Explain what strategic sourcing is.LO16-2
Explain why companies outsource processes.LO16-2
Analyze the total cost of ownership.LO16-2
Evaluate sourcing performance.LO16-2
What are characteristics of efficient, responsive, risk-hedging, and agile supply chains? Can a supply chain be both efficient and responsive? Risk-hedging and agile? Why or why not?LO16-2
With so much productive capacity and room for expansion in the United States, why would a company based in the United States choose to purchase items from a foreign firm? Discuss the pros and cons.LO16-2
As a supplier, which factors about a buyer (your potential customer)would you consider to be important in setting up a long-term relationship?LO16-2
Describe how outsourcing works. Why would a firm want to outsource?LO16-3
Have you ever purchased a product based on purchase price alone and were surprised by the eventual total cost of ownership (TCO), either in money or in time? Describe the situation.LO16-2
Why might managers resist buying a more expensive piece of equipment, known to have a lower TCO, than a less expensive item?LO16-4
Why is it desirable to increase a company’s inventory turnover ratio?LO16-2
Research and compare the inventory turnover ratios of three large retailers: Walmart, Target, and Nordstrom. Use the same financial website for all three, and compare numbers from the same time frame. What do these ratios tell you? Are you surprised by what you found?LO16-2
Sony Electronics produces a wide variety of electronic products for the consumer marketplace, such as laptop computers, PlayStation game consoles, and tablet computers. What type of products would these be considered in the Supply Chain Uncertainty Framework?LO16-2
One product that Staples sells a lot of is copy paper. According to the Supply Chain Uncertainty Framework, what supply chain strategy is appropriate for this product?LO16-2
What is the term used for a company moving management of the complete cycle of material flow to an outside provider?LO16-2
Many bottled water manufacturers have recently worked with their suppliers to switch over to bottles using much less plastic than before, reducing the amount of plastic that needs to be transported, recycled, and/or disposed of. What sourcing practice is this an example of?LO16-2
What term is used to refer to those activities that are the key source of competitive advantage?LO16-3
What three main categories of costs are considered in figuring the total cost of ownership?LO16-2
Which category of lifetime product costs are sometimes overemphasized, leading to a failure to fully recognize the total cost of ownership?LO16-2
One of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently being assembled at your plant. The supplier has bid $0.10 per part, given a forecast you provided of 200,000 parts in year 1; 300,000 in year 2; and 500,000 in year 3.Shipping and handling of parts from
Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year. Due to the size of your
Which supply chain efficiency measure is more appropriate when the majority of inventory is held in distribution channels?LO16-2
What do you call the average total value of all items held in inventory for a firm, at cost?LO16-2
The McDonald’s fast-food restaurant on campus sells an average of 4,000 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 350 pounds of hamburger in stock. Assume that the hamburger patties cost $1.00 a pound. What is the inventory
Evaluate an alternative that involves consolidating all 20-foot container volumes and using only a single consolidation center in Shanghai/Ningbo. Assume that all the existing 20-foot container volumes and the existing consolidation center volumes are sent to this single consolidation center by
What should be done based on your analytics analysis? What have you not considered that may make your analysis invalid or that may strategically limit success? What do you think Grainger management should do?LO16-2
Refers to how common an item is or how many substitutes might be available.LO16-2
When a customer allows the supplier to manage inventory policy for an item or group of items.LO16-2
A phenomenon characterized by increased variation in ordering as we move from the customer to the manufacturer in the supply chain.LO16-2
Products that satisfy basic needs and do not change much over time.LO16-2
In order to cope with high levels of supply uncertainty, a firm would use this strategy to reduce risk.LO16-2
Used to describe functions related to the flow of material in a supply chain.LO16-2
When a firm works with suppliers to look for opportunities to save money and benefit the environment.LO16-2
Refers to an estimate of the cost of an item that includes all costs related to the procurement and use of an item, including the costs of disposal after its useful life.LO16-2
Analyze the common types of manufacturing layouts.LO8-2
Illustrate layouts used in nonmanufacturing setting.LO8-2
What kind of layout is used in a physical fitness center?LO8-2
What is the objective of assembly-line balancing? How would you deal with the situation where one worker, although trying hard, is 20 percent slower than the other 10 people on a line?LO8-2
How do you determine the idle time percentage from a given assembly-line balance?LO8-2
What is the essential requirement for mixed-model lines to be practical?LO8-2
Why might it be difficult to develop a manufacturing cell?LO8-2
In what respects is facility layout a marketing problem in services?Give an example of a service system layout designed to maximize the amount of time the customer is in the system.LO8-2
Consider a department store. Which departments probably should not be located near each other? Would any departments benefit from close proximity?LO8-2
Cyprus Citrus Cooperative ships a high volume of individual orders for oranges to northern Europe. The paperwork for the shipping notices is done in the accompanying layout. Revise the layout to improve the flow and conserve space if possible.LO8-2
The Dorton University president has asked the OSCM department to assign eight biology professors (A, B, C, D, E, F, G, and H) to eight offices (numbered 1 to 8 in the diagram) in the new biology building.The following distances and two-way flows are given:LO8-2a. If there are no restrictions
An assembly line is to operate eight hours per day with a desired output of 240 units per day. The following table contains information on this product’s task times and precedence relationships:Task Task Time(Seconds)Immediate Predecessor A 60 –B 80 A C 20 A D 50 A E 90 B, C F 30 C, D G 30 E, F
The desired daily output for an assembly line is 360 units. This assembly line will operate 450 minutes per day. The following table contains information on this product’s task times and precedence relationships.Task Task Time(Seconds)Immediate Predecessor A 30 –B 35 A C 30 A D 35 B E 15 C F 65
Some tasks and the order in which they must be performed according to their assembly requirements are shown in the following table.These are to be combined into workstations to create an assembly line. The assembly line operates 7½ hours per day. The output requirement is 1,000 units per day.Task
An assembly line is to be designed to operate 7½ hours per day and supply a steady demand of 300 units per day. Here are the tasks and their performance times:Task Preceding Tasks Performance Time(Seconds)a – 70 b – 40 c – 45 d a 10 e b 30 f c 20 g d 60 h e 50 i f 15 j g 25 k h, i 20 l j, k
The following tasks are to be performed on an assembly line:Task Seconds Tasks That Must Precede It A 20 –B 7 A Task Seconds Tasks That Must Precede It C 20 B D 22 B E 15 C F 10 D G 16 E, F H 8 G The workday is seven hours long. The demand for the completed product is 750 per day. (Answers in
The flow of materials through eight departments is shown as follows. Even though the table shows flows into and out of the different departments, assume that the direction of flow is not important. In addition, assume that the cost of moving material depends only on the distance moved.a. Construct
The Sun River beverage company is a regional producer of teas, exotic juices, and energy drinks. With an interest in healthier lifestyles, there has been an increase in demand for its sugar-free formulation.The final packing operation requires 13 tasks. Sun River bottles its sugar-free product 5
Consider the following tasks, times, and predecessors for an assembly of set-top cable converter boxes:Task Element Time(Minutes)Preceding Tasks A 1 –B 1 A C 2 B D 1 B E 3 C, D F 1 A G 1 F H 2 G I 1 E, H Given a cycle time of four minutes, develop two alternative layouts.Use the longest task time
Francis Johnson’s plant needs to design an efficient assembly line to make a new product. The assembly line needs to produce 15 units per hour, and there is room for only four workstations. The tasks and the order in which they must be performed are shown in the following table. Tasks cannot be
In manufacturing layout design, the key concern is the resulting efficiency of the operation. In retail service operations, what is the primary concern or objective?LO8-2
What is the term used to refer to the physical surroundings in which service operations occur and how these surroundings affect customers and employees?LO8-2
What are the three terms used to describe the parts of a service operation that have social significance?LO8-2
What is the daily capacity of the assembly line designed by the engineers? Assume that the assembly line has a computer at every position when it is started at the beginning of the day.LO8-2
The line designed by the engineers is running at maximum capacity.What is the efficiency of the line relative to its use of labor? Assume that the supporter is not included in efficiency calculations.LO8-2
How should the line be redesigned to operate at the initial 250 units per day target, assuming that no overtime will be used? What is the efficiency of your new design relative to its use of labor?LO8-2
What about running the line at 300 units per day? If overtime were used with the engineers’ initial design, how much time would the line need to be run each day?LO8-2
Design an assembly line that can produce 300 units per day without using overtime (specify the tasks at each position in the line as done in Exhibit 8.16)?LO8-2
What other issues might the manager consider when bringing the new assembly line up to speed?LO8-2
Illustrate process variation and explain how to measure it.LO13-2
Analyze process quality using statistics.LO13-2
Analyze the quality of batches of items using statistics.LO13-2
The capability index allows for some drifting of the process mean. Discuss what this means in terms of product quality output.LO13-2
In an agreement between a supplier and a customer, the supplier must ensure that all parts are within specification before shipment to the customer. What is the effect on the cost of quality to the customer?LO13-2
In the situation described in question 2, what would be the effect on the cost of quality to the supplier?LO13-2
Discuss the purposes of and differences between -charts and R-charts.LO13-2
Discuss the trade-off between achieving a zero AQL(acceptable quality level) and a positive AQL (such as an AQL of 2 percent).LO13-2
A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position tests material that has a defective content on the average of 0.04.By
A metal fabricator produces connecting rods with an outer diameter that has a 1 ± .01-inch specification. A machine operator takes several sample measurements over time and determines the sample mean outer diameter to be 1.002 inches with a standard deviation of .003 inch.a. Calculate the process
C-Spec, Inc., is attempting to determine whether an existing machine is capable of milling an engine part that has a key specification of 4 ± .003 inches. After a trial run on this machine, C-Spec has determined that the machine has a sample mean of 4.001 inches with a standard deviation of.002
Ten samples of 15 parts each were taken from an ongoing process to establish a p-chart for control. The samples and the number of defectives in each are shown in the following table:Sample n Number of Defective Items in the Sample 1 15 3 2 15 1 3 15 0 4 15 0 5 15 0 6 15 2 7 15 0 8 15 3 9 15 1 10 15
A shirt manufacturer buys cloth by the 100-yard roll from a supplier. For setting up a control chart to manage the irregularities (e.g., loose threads and tears), the following data were collected from a sample provided by the supplier:Sample 1 2 3 4 5 6 7 8 9 10 Irregularities 3 5 2 6 5 4 6 3 4
Resistors for electronic circuits are manufactured on a highspeed automated machine. The machine is set up to produce a large run of resistors of 1,000 ohms each.To set up the machine and to create a control chart to be used throughout the run, 15 samples were taken with four resistors in each
You are the newly appointed assistant administrator at a local hospital, and your first project is to investigate the quality of the patient meals put out by the food-service department. You conducted a 10-day survey by submitting a simple questionnaire to the 400 patients with each meal, asking
The state and local police departments are trying to analyze crime rates so they can shift their patrols from decreasing-rate areas to areas where rates are increasing. The city and county have been geographically segmented into areas containing 5,000 residences. The police recognize that not all
Some citizens complained to city council members that there should be equal protection under the law against the occurrence of crimes. The citizens argued that this equal protection should be interpreted as indicating that high-crime areas should have more police protection than low-crime areas.
The following table contains the measurements of the key length dimension from a fuel injector. These samples of size five were taken at one-hour intervals.Construct a three-sigma - chart and R-chart (use Exhibit 13.7) for the length of the fuel injector. What can you say about this process?LO13-3
Prepare - and R-charts using these data with the method described in the chapter.LO13-2
Analyze the charts and comment on whether the process appears to be in control and stable.LO13-2
Twelve additional samples of curetime data from the molding process were collected from an actual production run.The data from these new samples are shown as follows. Update your control charts and compare the results with the previous data. The - and R-charts are drawn with the new data using the
If the specification is such that no washer should be greater than 2.4 millimeters, assuming that the thicknesses are distributed normally, what fraction of the output is expected to be greater than this thickness?LO13-2
If there are upper and lower specifications, where the upper thickness limit is 2.4 and the lower thickness limit is 1.4, what fraction of the output is expected to be out of tolerance?LO13-2
What is the Cpk for the process?LO13-2
What would be the Cpk for the process if it were centered between the specification limits (assume the process standard deviation is the same)?LO13-2
What percentage of output would be expected to be out of tolerance if the process were centered?LO13-2
Set up and range control charts for the current process. Assume the operators will take samples of 10 washers at a time.LO13-2
Plot the data on your control charts. Does the current process appear to be in control?LO13-2
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