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supply chain management 2nd

Supply Chain Management 2nd Edition Nada R. Sanders - Solutions

What are the z-values for service levels of 80, 85, 90, 95, and 99 percent, assuming demand is normally distributed?
Alice opens an aquarium store in a lively shopping mall and finds business to be booming, but she often stocks out of key items customers want.She decides to experiment with inventory-control methods, such as using a fixed-order quantity(FQS) and/or fixed-order period (FPS) systems.The FLUVAL 303
Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items customers want. She decides to experiment with inventory control methods, such as using a continuous review (fixed-order quantity) and/or periodic review (fixed-order
TV Galore is a new specialty store that sells television sets, video games, and other television-related products. A new Japanese-manufactured game sells cost $400. Because such games have a short life cycle and can be considered somewhat perishable, inventory-carrying cost is high. It is at an
JAZ Medical Supplies is implementing a new economic order quality (EOQ) inventory-control system and needs a good estimate of the cost to process a purchase order (PO); i.e, the order cost Co. It takes four total labor hours to process a PO.The average number of SKUs on a PO is four. The average
Bishop Manufacturing is implementing an economic order quality (EOQ) inventory-control system and needs a good estimate of the cost to process a purchase order (PO). It takes five total labor hours to process a PO. The average number of stock keeping units (SKUs) on a PO is 2.2. The average wage
The XYZ Company purchases a component used in the manufacture of automobile generators directly from the supplier. XYZ’s generator production, which is operated at a constant rate, will require 1,200 components per month throughout the year.Assume ordering costs are $25 per order, item cost is
The maternity ward of a hospital sends one baby blanket home with each newborn baby. The following information is available for the baby blankets:a. As the new maternity ward manager, you decide to improve the current ordering methods used for items which are stocked in the maternity ward.
Nation-Wide Bus Lines is proud of the six-week driver-training program it conducts for all new Nation-Wide drivers. The program costs Nation-Wide $22,000 for instructors, equipment, and so on, and is independent of the number of new drivers in the class as long as the class size remains less than
A product with an annual demand of 1,000 SKUs has Co = $30 and Ch = $8. The demand exhibits some variability such that the lead-time demand follows a normal distribution, with a mean of 25 and a standard deviation of five.a. What is the recommended order quantity?b. What is the reorder point and
The B&S Novelty and Craft Shop in Bennington, Vermont, sells a variety of quality, handmade items to tourists. It will sell 300 hand-carved miniature replicas of a colonial soldier each year, but the demand pattern during the year is uncertain.The replicas sell for $20 each, and B&S uses a
Apply the EOQ model to the quantity-discount situation shown in the data below:Assume that D = 500 units per year, Co = $40, and the annual inventory-holding cost is 20 percent. What order quantity do you recommend? Discount Order Category Size 0 to 99 100 or more 1 www 2 Discount 0 percent 3
Allen’s Shoe Stores carries a basic black dress shoe for men that sells at an approximate constant rate of 500 pairs of shoes every three months. Allen’s current buying policy is to order 500 pairs each time an order is placed. It costs $30 to place an order, and inventory-carrying costs have
For the data given in Exhibit 12.26 for problem 50, illustrate the operation of a fixed-period-inventory system with a replenishment (M) level of 40, a review period of five days, a lead time of 3 days, and use Equation 12.1. Assume that orders are placed at the end of the day and that they arrive
Crew Soccer Shoes Company is considering a change of their current inventory-control system for soccer shoes. The information regarding the shoes is given below:a. The company decides to use a fixed-order quantity system. What would be the reorder point and the economic order quantity?b. In this
Wildcat Tools is a distributor of hardware and electronics equipment. Their socket wrench inventory needs better management. The information regarding the wrenches is given below.a. The company decides to use a continuous review system. What is the recommended reorder point, safety stock, and the
Use the ABC Excel template in MindTap to perform an ABC analysis for the data provided in the worksheet C12 Excel P64 Data in MindTap. Clearly explain why you classified items as A, B, or C.
Use the ABC Excel template in MindTap to perform an ABC analysis for the data provided in the worksheet C12 Excel P65 Data in MindTap. Clearly explain why you classified items as A, B, or C.
A&M Industrial Products purchases a variety of parts used in small industrial tools. Inventory has not been tightly controlled, and managers think that costs can be substantially reduced. The items in the worksheet C12 Excel P66 in MindTap comprise the inventory of one product line. Use the ABC
Mama Mia’s Pizza purchases its pizza delivery boxes from a printing supplier. Mama Mia’s delivers on-average 225 pizzas each month (assume deterministic demand). Boxes cost 43 cents each, and each order costs $12.50 to process. Because of limited storage space, the manager wants to charge
Refer to the situation in problem 67. Suppose the manager of Mama Mia’s current order quantity is 400 boxes. How much can be saved by adopting an EOQ versus their current Q = 400? Use the EOQ Model Excel template in MindTap to find your answer.Problem 67Mama Mia’s Pizza purchases its pizza
Environmental considerations, material losses, and waste disposal can be included in the EOQ model to improve inventory-management decisions.Assume that the annual demand for an industrial chemical is 1,200 lb, item cost is $5/lb, order cost is $40, inventory-holding cost rate (percent of item
For Suzie’s Sweetshop scenario in problem 77, suppose that demand is normally distributed with a mean of 75 and a standard deviation of eight. How will her optimal order quantity change? Use the Single Period Inventory Excel template in MindTap to find your answer.Problem 77 Suzie’s Sweetshop
Use the Inventory Simulation Excel template in MindTap for the Scott Audio Systems example in section 12-7 to determine the best order quantityreorder point combination with the smallest average cost/day for all combinations of reorder points five, seven, and nine, and order quantities 10, 20, and
Daniel’s Auto Parts is a small wholesale distributor of automobile after-market items. For one particular part, an analysis of historical sales resulted in the distribution of daily demand shown below:When a new supply of the part is ordered, the lead-time distribution is shown below (for
Rapido Burrito is a small, regional chain of quick service restaurants. Rather than wait in a cafeteria-style line, customers check boxes for their choice of ingredients, sauce, and so on paper menus at their table. The food is prepared quickly and then delivered to the tables.Lately, one of the
Greyhound Bank operates in the United States and provides a full range of financial services for individuals and business. The credit card division is a profit center that has experienced a 10 percent annual growth rate over the last five years. These credit card services include producing and
The Hudson Jewelers case study available in MindTap integrates material found in each chapter of this book.Case Questions for Discussion:1. What is the value of a loyal customer to Hudson Jewelers for a wealthy individual who visits Naples every February and buys jewelry for her extended family
Describe how customers evaluate goods and services.
What are the five competitive priorities? Cite an example of an organization that demonstrates the competitive priority.
How does Dr. Hill’s strategy framework tie corporate strategy to marketing and operations strategy?
What might the competitive advantage be for each of the following companies?a. eBayb. Southwest Airlinesc. Starbucksd. Applee. Facebookf. Uber g. 3M h. Amazon i. Bentley automobiles j. Nordstrom
Select a business with which you are familiar and identify examples of customers using search, experience, and credence quality to evaluate the good or service. You might also research the businesses on the Internet or visit the library.
Compare Lyft (www.lyft.com) and Uber (www.uber.com) strategies. Explain the similarities and differences in their missions, strategies, and competitive priorities, and how their operations strategies might differ. Use the Internet or business magazines to research the information you need. Report
Identify two competing organizations (e.g., AT&T and Verizon, TaylorMade and Callaway golf club manufacturers, or Starbucks and Panera). Explain the differences in their missions, strategies, and competitive priorities, and how their operations strategies might differ. Use the Internet or business
Founded in 1839 to facilitate the growth and ease of commerce, the Greater Cincinnati Chamber of Commerce (www.cincinnatichamber.com) is a membership organization of approximately over 7,000 businesses and organizations in the region that surrounds Cincinnati, Ohio.The Chamber's stated purpose is
"Chris, we make the highest-quality grass seed and fertilizer in the world. Our brands are known everywhere!" stated Caroline Ebelhar, the vice president of manufacturing for The Lawn Care Company. "Yeah! But the customer doesn't have a Ph.D. in organic chemistry to understand the difference
The Hudson Jewelers case study found in MindTap integrates material found in each chapter of this book.Case Questions for Discussion:1. Define and draw the customer benefit package and state Hudson Jewelers's strategy; rank order its competitive priorities, order qualifiers, and order winners; and
What is CAD/CAE? Provide one non-textbook example.
What types of technology might a major hotel chain use to enhance the customer experience?
How can break-even analysis help managers make decisions?
Bloomberg Businessweek published an article titled “This Economic Model Organized Asia for Decades. Now It’s Broken” (June 21, 2017; https://www.bloomberg.com/news/features/2017-06-21/this-economic-model-organized-asia-for-decadesnow-it-s-broken). Research and explain the concept of the
Research and write a short paper (maximum of two typed pages) on the advantages and disadvantages of “technology transfer” when a firm partners with a firm in another country.
You need to expand your small business, Paddle Incorporated, that manufactures paddle board rackets. The fixed cost for the new technologically advanced equipment is $15,000. The variable cost to produce each unit using the new equipment is $10, and the selling price for the finished product is
The Vera Molding company has two alternatives for meeting a customer requirement for 9,000 units of a specialty molding. If done in-house, fixed cost would be $350,000 with variable cost at $30 per unit.Alternative two is to outsource for a total cost of $80 per unit.a. What is the break-even
Meyers Window Company introduced a new window design but sales were below expectations.Sales in units last year were 800 units. Variable cost per unit averaged $105.72, the fixed cost was$42,000, and the selling price was $149.99.a. What is the break-even quantity for this new window?b. If sales
Pesto Restaurant must decide between two types of technology in its kitchen. Option A is to use an induction oven process with a fixed cost of$20,000 and a variable cost of $6.51 per meal.Option B is to use a gas-fired oven process with a fixed cost of $12,000 and a variable cost of$7.86 per meal.
The selling price per box for Cynthia’s Cookies is$19.95. Fixed costs are $65,000 and the variable cost per box is $9.88.a. What is the break-even quantity?b. If sales last year were 8,200 boxes, what was the net profit?
In Problem 35, Cynthia’s Cookies must decide between two improvement options. Option 1 is spending $10,000 on a new online marketing campaign that is expected to increase last year’s sales (units) by 20 percent. Option 2 is to reduce variable costs by 10 percent by spending$10,000 on equipment
Suppose that in Problem 37 a forecasting study determines that the probabilities of demand volume are Low = 0.2, Medium = 0.2, and High = 0.6. Use the Excel template Decision Analysis to determine the expected value decision.How appropriate is it to use this criterion?Interpret EVPI, the expected
A company is considering three vendors for purchasing a CRM system: Delphi Inc., CRM International, and Murray Analytics. The costs of the system are expected to depend on the length of time required to implement the system, which depends on such factors as the amount of customization required,
Suzy’s Temporary Employee (STE) business, located in a big city, can do an online criminal background check in-house for $1.29 per search with a fixed cost of $29,000. A third-party online security firm offered to do a similar security search for $8.00 per person with an annual service contract
A manager of Paris Manufacturing that produces computer hard drives is planning to lease a new automated inspection system. The manager believes the new system will be more accurate than the current manual inspection process. The firm has had problems with hard drive defects in the past and the
Assume the cost factors given in Problem 42 have not changed. A marketing representative of NEW-SPEC, a firm that specializes in providing manual inspection processes for other firms, approached Paris Manufacturing and offered to inspect parts for $19 each with no fixed cost. They assured Paris
Drew Ebel was contemplating buying an automated car wash franchise as a family business. His wife Caroline, their two kids, Jasmine and Luke, and their dog, Lilly, were a close-knit family that were tired of the bureaucracy of corporate and government jobs. The dualcareer family had saved $200,000
Jack Bracket, the CEO of Bracket International (BI), has grown his business to sales last year of $78 million, with a cost of goods sold of $61 million. Average inventory levels are about $14 million. As a small manufacturer of steel shelving and brackets, the firm operates three small factories in
The Hudson Jewelers case study found in MindTap integrates material found in each chapter of this book.Case Questions for Discussion:1. What are the advantages and disadvantages from the service provider’s (jeweler’s) perspective of using “design your own ring” 3-D/CAD technology at the
Explain the importance of new product design and development.
What are the six major steps in designing goods and services?
Explain the concept and application of quality function deployment.
Explain how goods and service design concepts are integrated at LensCrafters.
In building a House of Quality, what departments or functions should be involved in each step of the process?
Is it easier to management a high- or low-customer-contact business? Explain.
Characterize the following goods and services on the low–high-customer-contact continuum and justify your answer in a sentence or two.a. participating in a case study classroom discussionb. listening and taking notes in a classroom lecturec. machining an aluminum part in a factoryd. taking your
How would you rate the following service-encounter experience?You are going on a trip to see a play in New York City. Your airline flight sits at the gate awaiting the pilot and co-pilot at 8 am in the morning.You sit and you sit. After one hour, all passengers are ask to leave the plane, take all
Develop a House of Quality for a manufactured good or service based on current or past work experience or something else you are familiar with. Some ideas might be a quick service oil change, a fast-food restaurant, a new car, or a fitness club.
The following exhibit shows a partially completed House of Quality for a proposed fitness center.a. Examine the relationships in the roof of the House of Quality. Explain why they make sense (or if you think they do not, explain why). How would this assessment help in the design activity?b.
Build a House of Quality (showing only the Voice of the customer, Technical features, Interrelationships, and Relationship matrix from Exhibit 5.2) for designing and producing chocolate chip cookies. The voice of the customer consists of the following:a. Softb. Freshc. Bittersweetd. Not burnede.
Suppose that the specifications for a part (in inches) are 6.00 ± 0.02 and that the Taguchi loss function for some part is estimated to be L(x) = 6,800 (x - T). Determine the economic loss if x = 6.05 inches.
A quality characteristic has a specification (in inches) of 0.200 ± 0.020. If the value of the quality characteristic exceeds 0.200 by the tolerance of 0.020 on either side, the product will require a repair of $150. Develop the appropriate Taguchi loss function.
Vehicle transmission repairs for part number TAC45123 are costly to replace. A highly skilled mechanic must disassemble the transmission. If the part fails while it is in warranty, the manufacturer pays the full cost of the repair to the garage or dealer that did the repair. The manufacturer uses
The service center for a brokerage company provides three functions to callers: account status, order confirmations, and stock quotes. The reliability was measured for each of these services over one month with these results: 90%, 80%, and 96%, respectively.What is the overall reliability of the
A mortgage loan approval process consists of three steps in series performed by clerks A, B, and C. Errors are often made, and a study found that clerks A and B had an average reliability of only 0.85, which results in the paperwork having errors, missing information, and so on. Clerk C who
A simple electronic assembly consists of two components in a series configuration with reliabilities as shown in the figure below.Engineers would like to increase the reliability by adding additional components in one of the two proposed designs shown below:a. Find the reliability of the original
Assume the specifications for a part (in inches) are 5.00 ± 0.37, and the Taguchi loss function is estimated to be L(x) = 9,300 (x − T)2. Use the Excel template Taguchi to determine the estimated loss if the quality characteristic under study takes on a value of 5.50 inches.
Assume the specifications for a television remote control part (in inches) are 5.00 ± 0.10, and the Taguchi loss function is estimated to be L(x) =5,500 (x − T)2. Determine the estimated loss per part if the quality characteristic (i.e., actual process performance) under study takes on a value
A quality characteristic has a design specification(in cm.) of 0.200 ± 0.02. If the actual process value of the quality characteristic is at the boundary of the tolerance on either side, the product will require a repair of $30. Use the Excel template Taguchi to find the value of k and state the
For the situation in problem 51, what are the economic design specifications if the cost of inspection and adjustment is $7.50?Data from in problem 51A quality characteristic has a design specification(in cm.) of 0.200 ± 0.02. If the actual process value of the quality characteristic is at the
Suppose that the design specifications for a hydraulic cylinder are 10.00 ± 0.10 centimeters and that the Taguchi loss function is estimated to be L(x) = 1,400 (x - T)2. Use the Excel template Taguchi to answer the following questions:a. Determine the estimated loss for a production order if the
An electronic missile guidance system at Mguide Inc. consists of components A, B, C, and D, which have reliabilities of 0.98, 0.97, 0.91, and 0.95, respectively (see the following diagram).a. Use the Excel template Systems Reliability to compute the reliability of the entire system.b. Suppose the
Magnaplex Inc. has a complex manufacturing process, with three operations that are performed in series. Because of the nature of the process, machines frequently fall out of adjustment and must be repaired. To keep the system going, two identical machines are used at each stage; thus, if one fails,
MegaMart, a large department store, has a very successful and profitable package wrapping department.The department uses two very complex bow-making machines that work inline to make the bows for the packages. Bow-making machine#1 has a reliability of 0.97. Machine #2 is old and has a reliability
“I know what we can do next; everything has been so successful so far,” said Kay Ebelhar, marketing services division manager. “How about designing and offering a courtesy service guarantee? We will promise to greet customers, give them our undivided attention, and then thank them when they
Tom’s Auto Service (TAS) is a regional quick-service vehicle oil-change and lubricant-change service somewhat similar to Jiffy Lube and Tuffy Tire & Auto Service. TAS seeks to differentiate its 32 stores from competition by focusing on peripheral goods and services, the servicescape, and
The Hudson Jewelers case study found in MindTap integrates material found in each chapter of this book.Case Questions for Discussion:1. Hudson Jewelers’ current layout displays jewelry designs from the CAD system on a screen in the front of the store. However, customers have little privacy when
How can break-even analysis be used to help managers make outsourcing decisions?
Industrial Products, Inc. has two alternatives for manufacturing 12,000 industrial 100-horse power electric motors per year. If done in-house, fixed cost would be $2,100,000 with variable cost at $6,800 per unit. Alternative two is to outsource for a total cost of $7,300 per unit.a. What is the
Microserve provides computer repair service on a contract basis to customers in five sections of the city. The five sections, the number of service contracts in each section, and the x and y coordinates of each section are as follows:Use the center-of-gravity method to determine an ideal location
Using the following information about material volume shipped from a factory to four retail outlets, find the best location for the factory using the center of gravity method.Use the center-of-gravity method to determine an ideal location for a service center. Retail Outlet 1 2 3 20 4 Location
Describe a customer benefit package.
Explain the difference between value chains and supply chains.
Contrast the three different frameworks for describing value chains.
Define sustainability and explain its threedimensions.
What percent of U.S. economy jobs are in the service sector?
Describe the importance of data and business analytics in operations and supply chain management.
Evaluate how the activities described in the box “What Do Operations Managers Do?” can be applied to a student organization or fraternity to improve its effectiveness.
When Walt Disney created the Disney empire in the 1950s, he forbid its star characters such as Mickey Mouse and Pluto to talk. Mr. Disney thought it would be too difficult to control the service encounters between customers and the Disney characters, and it would ruin the “magic” of Disney.
Zappos (www.zappos.com) is a Las Vegas–based online retailer that has been cited in Fortune’s list of the Best Companies to Work For and Fast Company’s list of the world’s most innovative companies. In fact, its remarkable success resulted in Zappos being bought by Amazon for $850 million
The Hudson Jewelers case study in MindTap integrates material found in each chapter of this book.Case Questions for Discussion:1. Use one of the three value chain frameworks discussed in this chapter to characterize the diamond value chain. How does this value chain gain a customer? How does it
What is a customer-satisfaction system?

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