Questions from General Operations Management

Q: Alaska Airlines is unique among the nine major U.S.

Alaska Airlines is unique among the nine major U.S. carriers not only for its extensive flight coverage of remote towns throughout Alaska (it also covers the U.S., Hawaii, and Mexico from its primary...

Q: Meena Distributors has an annual demand for an airport metal detector of

Meena Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Meena is $400. Carrying cost is estimated to be 20% of the unit cost, and the or...

Q: The catering manager of La Vista Hotel, Lisa Ferguson, is

The catering manager of La Vista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet for 500 people,...

Q: Rocky Mountain Tire Centre sells 20,000 go-cart tires

Rocky Mountain Tire Centre sells 20,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year. The purchase price is...

Q: M. P. VanOyen Manufacturing has gone out on bid for

M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 700 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. The...

Q: Chris Sandvig Irrigation, Inc., has summarized the price list from

Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the accompanying table on the next page. Annual usage is 2,400 valves;...

Q: Emery Pharmaceutical uses an unstable chemical compound that must be kept in

Emery Pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. Emery uses 800 pounds per month of the chemical, esti...

Q: The oar maker Collars produces high-quality oars shipped all over

The oar maker Collars produces high-quality oars shipped all over the world. The oars are equipped with bronze oarlocks when sold to customers. Those oarlocks are purchased from an external supplier....

Q: Jean-Marie Bourjolly’s restaurant has the following inventory items that it

Jean-Marie Bourjolly’s restaurant has the following inventory items that it orders on a weekly basis: a) Which is the most expensive item, using annual dollar volume? b) Which are C...

Q: Emarpy Appliance is a company that produces all kinds of major appliances

Emarpy Appliance is a company that produces all kinds of major appliances. Bud Banis, the president of Emarpy, is concerned about the production policy for the company’s best-selling refrigerator. The...