Questions from General Operations Management

Q: Regional Supermarket is open 360 days per year. Daily use of

Regional Supermarket is open 360 days per year. Daily use of cash register tape averages 10 rolls. Usage appears normally distributed with a standard deviation of 2 rolls per day. The cost of ordering...

Q: The county sheriff’s department responded to an unusually large number of vehicular

The county sheriff’s department responded to an unusually large number of vehicular accidents along a quarter-mile stretch of highway in recent months. Prepare a cause-and-effect diagram for this prob...

Q: A service station uses 1,200 cases of oil a year

A service station uses 1,200 cases of oil a year. Ordering cost is $40, and annual carrying cost is $3 per case. The station owner has specified a service level of 99 percent. a. What is the optimal o...

Q: Caring Hospital’s dispensary reorders doses of a drug when the supply on

Caring Hospital’s dispensary reorders doses of a drug when the supply on hand falls to 18 units. Lead time for resupply is three days. Given the typical usage over the last 10 days,...

Q: A drugstore uses fixed-order cycles for many of the items

A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service level of .98. The order interval is 14 days, and lead time is 2 days. Average demand for one item is 40...

Q: A manager must set up inventory ordering systems for two new production

A manager must set up inventory ordering systems for two new production items, P34 and P35. P34 can be ordered at any time, but P35 can be ordered only once every four weeks. The company operates 50 w...

Q: Given the following list of items, a. Classify the

Given the following list of items, a. Classify the items as A, B, or C. b. Determine the economic order quantity for each item (round to the nearest whole unit).

Q: Demand for jelly doughnuts on Saturdays at Don’s Doughnut Shoppe is shown

Demand for jelly doughnuts on Saturdays at Don’s Doughnut Shoppe is shown in the following table. Determine the optimal number of doughnuts, in dozens, to stock if labor, materials,...

Q: A public utility intends to buy a turbine as part of an

A public utility intends to buy a turbine as part of an expansion plan and must now decide on the number of spare parts to order. One part, no. X135, can be purchased for $100 each. Carrying and dispo...

Q: Skinner’s Fish Market buys fresh Boston bluefish daily for $4.

Skinner’s Fish Market buys fresh Boston bluefish daily for $4.20 per pound and sells it for $5.70 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food f...