Questions from Operations Management

Q: Rachel is making T-shirts that she hopes to sell at

Rachel is making T-shirts that she hopes to sell at the upcoming “War on War” concert. The T-shirts cost $6 each to produce, and she will price them at $20 each. She expects that she can donate any un...

Q: Suppose that in problem 35, Rachel can spend $1,

Suppose that in problem 35, Rachel can spend $1,000 to buy a well-placed booth at the concert. Doing so would raise the expected sales of T-shirts from 1,000 to 1,200 and lower the standard deviation...

Q: Thor industries operates 10 warehouses around the country. Each facility operates

Thor industries operates 10 warehouses around the country. Each facility operates independently, placing its own replenishment orders from the corporate manufacturing plant. To improve delivery lead t...

Q: McCain Inc. is considering a move toward completely on-line

McCain Inc. is considering a move toward completely on-line retailing. This would mean closing its eight independent brick and mortar stores, and replacing them with a single fulfillment center. Curre...

Q: Akers Inc. maintains average inventory of $1,000,

Akers Inc. maintains average inventory of $1,000,000 (at cost). Last year, Akers’s sales volume was $10,000,000 and cost of goods sold was $7,000,000. Akers has determined that its inventory carrying...

Q: The injection-molded caps of disposable ballpoint pens must meet tight

The injection-molded caps of disposable ballpoint pens must meet tight specifications to fit snugly on the pen. One specification that is tracked is the cap’s weight, which should be...

Q: A sporting goods company has a distribution center that maintains inventory of

A sporting goods company has a distribution center that maintains inventory of fishing rods. The fishing rods have the following demand, lead time, and cost characteristics: Average demand = 100 units...

Q: A company experiences annual demand of 1,000 units for an

A company experiences annual demand of 1,000 units for an item that it purchases. The rate of demand per day is very stable, with very little variation from day to day. The item costs $50 when purchas...

Q: Meyer Stores carries a specialty line of flavored syrups. On average

Meyer Stores carries a specialty line of flavored syrups. On average, Meyer sells 30 bottles per week of its popular raspberry syrup. Meyer’s cost is $8 per bottle. Meyer has determined its order cost...

Q: Talbot Industries is evaluating its service level policy for a product that

Talbot Industries is evaluating its service level policy for a product that is considered critical to customers. Demand for the item averages 100 units per day and the lead time from the supplier of t...