Question: A check-processing center uses exponential

> Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop its aggregate schedule. The cost accounting department has supplied you the costs relevant to the aggregate plan, and the marketing department has provided a four-

> The S&OP team at Kansas Furniture, has received the following estimates of demand requirements: a) Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending i

> Hill is now considering plan C: Keep a stable workforce by maintaining a constant production rate equal to the average requirements and allow varying inventory levels. Beginning inventory, stock out costs, and holding costs are provided in Problem 13.3.

> Using the information in Problem 13.3, develop plan B. Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Evaluate this plan by computin

> Mattress Wholesalers, Inc., is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7.5 million and inventory was $1.5 million. This year, cost of goods sold is $8.6 million and inventory investment is $1.6 millio

> The grocery industry has an annual inventory turnover of about 14 times. Organic Grocers, Inc. had a cost of goods sold last year of $10.5 million; its average inventory was $1.0 million. What was Organic Grocers’ inventory turnover, and how does that pe

> Baker Mfg. Inc. (see Table 11.9 ) wishes to compare its inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory. a) What is Baker’s inventory turnover? b

> Hokey Min’s Kleen Karpet cleaned 65 rugs in October, consuming the following resources: a) What is the labor productivity per dollar? b) What is the multifactor productivity? Labor: 520 hours at $13 per hour Solvent: 100 gallons a

> Kamal Fatehl, production manager of Kennesaw Manufacturing, finds his profit at $15,000 (as shown in the statement below)—inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a

> Reid Chocolates (see Problems 9.6 and 9.7) has yet two more layouts to consider. a) Layout 4 is shown below. What is the total trip distance? b) Layout 5, which also follows, has what total trip distance? Kitchen layout #4 Walking distance in feet C

> Reid Chocolates (see Problem 9.6) is considering a third layout, as shown below. Evaluate its effectiveness in trip distance feet. Kitchen layout #3 Walking distance in feet Refrig. Counter Sink (2) 3) 2 Storage 12 10 14 8. 4 Stove 5)

> Three departments—milling (M), drilling (D), and sawing (S)—are assigned to three work areas in Victor Berardis’s machine shop in Vent, Ohio. The number of work pieces moved per day and the distances

> Gordon Miller’s job shop has four work areas, A, B, C, and D. Distances in feet between centers of the work areas are: Work pieces moved, in hundreds of work pieces per week, between pairs of work areas, are: It costs Gordon $1 to m

> A small rural county has experienced unprecedented growth over the past 6 years, and as a result, the local school district built the new 500-student North Park Elementary School. The district has three older and smaller elementary schools: Washington, J

> Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified: Bonham and McKinney. Bonham would have fixed costs of $800,000 per year and variable costs of $14,000 per standard unit produce

> Peter Billington Stereo, Inc., supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas are lower due to cheaper land costs, but the variable co

> Northeastern Insurance Company is considering opening an office in the U.S. The two cities under consideration are Philadelphia and New York. The factor ratings (higher scores are better) for the two cities are given in the following table. In which city

> Subway, with more than 25,000 outlets in the U.S., is planning for a new restaurant in Buffalo, New York. Three locations are being considered. The following table gives the factors for each site. a) At which site should Subway open the new restaurant?

> George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is

> Refer to Problem 8.3. If the final destination is New Delhi, India, and there is a 30% import tax, which firm should you choose? Reference Problem 8.3: You have been asked to analyze the bids for 200 polished disks used in solar panels. These bids have

> You have been asked to analyze the bids for 200 polished disks used in solar panels. These bids have been submitted by three suppliers: Thailand Polishing, India Shine, and Sacramento Glow. Thailand Polishing has submitted a bid of 2,000 baht. India Shin

> Refer to Problem 8.1. Shipping cost from Myanmar to Denver, Colorado, the final destination, is $1.50 per unit. Shipping cost from China to Denver is $1 per unit, while the shipping cost from Billings to Denver is $.25 per unit. Considering both labor an

> Prepare a service blueprint for one of the activities in Problem 7.13. Reference from Problem 7.13: a) the registration process at a school b) the process at the local car wash c) a shoe shine d) some other process with the approval of the instructor

> Prepare a time-function map for one of the activities in Problem 7.13. Reference from Problem 7.13: a) the registration process at a school b) the process at the local car wash c) a shoe shine d) some other process with the approval of the instructor

> Prepare a process chart for one of the activities in Problem 7.13. Reference from Problem 7.13: a) the registration process at a school b) the process at the local car wash c) a shoe shine d) some other process with the approval of the instructor

> Stapleton Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000, and for proposal B, $34,000. The variable cost for A is $10, and for B, $14. The r

> Nagle Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $75,000 and a variable cost of $16, with a capacity of 18,000 units per year. Machine B is

> California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as “Clunker.” Hi-Speed will have a

> Matthew Bailey, as manager of Designs by Bailey, is upgrading his CAD software. The high-performance (HP) software rents for $3,000 per month per workstation. The standard-performance (SP) software rents for $2,000 per month per workstation. The producti

> Lori Cook produces “Final Exam Care Packages” for resale by her sorority. She is currently working a total of 5 hours per day to produce 100 care packages. a) What is Lori’s productivity? b) Lori thinks that by redesigning the package, she can increase h

> Refer to Problem 7.1. If a contract for the second and third years is pending, what are the implications for process selection? Reference Data Problem 7.1: GENERAL- PURPOSE EQUIPMENT MANUFACTURING (GPE) FLEXIBLE DEDICATED МАCHINE SYSTEM (FMS) (DM)

> Using the data in Problem 7.1, determine the best process for each of the following volumes: (1) 75,000, (2) 275,000, and (3) 375,000. Reference Data Problem 7.1: GENERAL- PURPOSE EQUIPMENT MANUFACTURING (GPE) FLEXIBLE DEDICATED МАCHINE SYSTEM (FMS

> Using the data in Problem 7.1, determine the most economical volume for each process. Reference of Data Problem 7.1: GENERAL- PURPOSE EQUIPMENT MANUFACTURING (GPE) FLEXIBLE DEDICATED МАCHINE SYSTEM (FMS) (DM) Annual contracted 200,000 200,000 200,0

> Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three altern

> A list of 16 issues that led to incorrect formulations in Tuncey Bayrak’s jam manufacturing unit in New England is provided below: List of Issues: Create a fish-bone diagram and categorize each of these issues correctly, using the &ac

> Kathleen McFadden’s restaurant in Boston has recorded the following data for eight recent customers: a) McFadden wants you to graph the eight points (x i, y i), i 5 1, 2, … 8. She has been concerned because custome

> Sox Engineering designs and constructs air conditioning and heating systems for hospitals and clinics. Currently, the company’s staff is overloaded with design work. There is a major design project due in 8 weeks. The penalty for comple

> Residents of Mill River have fond memories of ice skating at a local park. An artist has captured the experience in a drawing and is hoping to reproduce it and sell framed copies to current and former residents. He thinks that if the market is good he ca

> MacDonald Products, Inc., of Clarkson, New York, has the option of (a) proceeding immediately with production of a new top-of-the-line stereo TV that has just completed prototype testing or (b) having the value analysis team complete a study. If Ed Lusk,

> Draw a two-participant PCN diagram (similar to Figure 5.12) for one of the following processes: a) The process of having your computer repaired. b) The process of pizza preparation. c) The process of procuring tickets for a concert.

> This year, Druehl, Inc., will produce 57,600 hot water heaters at its plant in Delaware, in order to meet expected global demand. To accomplish this, each laborer at the plant will work 160 hours per month. If the labor productivity at the plant is 0.15

> Prepare an assembly chart for a table lamp.

> Draw an assembly chart for a pair of eyeglasses and its case.

> Using the house of quality sequence, as described in Figure 5.4 on page 169, determine how you might deploy resources to achieve the desired quality for a product or service whose production process you understand.

> Conduct an interview with a prospective purchaser of a new bicycle and translate the customer’s wants into the specific hows of the firm.

> Prepare a house of quality for a mousetrap.

> Using the house of quality, pick a real product (a good or service) and analyze how an existing organization satisfies customer requirements.

> The number of auto accidents in Athens, Ohio, is related to the regional number of registered automobiles in thousands (X1), alcoholic beverage sales in $10,000s (X2), and rainfall in inches (X3). Furthermore, the regression formula has been calculated a

> Lori Cook has developed the following forecasting model: y = 36 + 4.3x Where y = demand for Kool Air conditioners and x = the outside temperature (°F) a) Forecast demand for the Kool Air when the temperature is 70°F. b) What is demand when the temperatu

> The activities needed to build a prototype laser scanning machine at Dave Fletcher Corp. are listed in the following table. Construct an AON network for these activities. IMMEDIATE IMMEDIATE ACTIVITY PREDECESSOR(S) ACTIVITY PREDECESSOR(S) A E B F B

> Carbondale Casting produces cast bronze valves on a 10-person assembly line. On a recent day, 160 valves were produced during an 8-hour shift. a) Calculate the labor productivity of the line. b) John Goodale, the manager at Carbondale, changed the layout

> Using AOA, diagram the network described below for Lillian Fok’s construction project. Calculate its critical path. How long is the minimum duration of this network? TIME TIME АСTIVITY NODES (WEEKS) ACTIVITY NODES (WEEKS) 1-2 10 N

> Given the activities whose sequence is described by the following table, draw the appropriate activity-on-arrow (AOA) network diagram. a) Which activities are on the critical path? b) What is the length of the critical path? IMMEDIATE ACTIVITY PREDE

> Draw the activity-on-node (AON) project network associated with the following activities for Carl Betterton’s construction project. How long should it take Carl and his team to complete this project? What are the critical path activitie

> Refer to the table in Problem 3.3. a) Draw the AON network for the construction activity. b) Draw the AOA network for the construction activity. TIME (IN HOURS) PREDECESSOR(S) IMMEDIATE CODE ACTIVITY DESCRIPTION Planning Find location; determine re

> The City Commission of Nashville has decided to build a botanical garden and picnic area in the heart of the city for the recreation of its citizens. The precedence table for all the activities required to construct this area successfully is given. Draw

> Ranga Ramasesh is the operations manager for a firm that is trying to decide which one of four countries it should research for possible outsourcing providers. The first step is to select a country based on cultural risk factors, which are critical to ev

> Susan Williams runs a small Flagstaff job shop where garments are made. The job shop employs eight workers. Each worker is paid $10 per hour. During the first week of March, each worker worked 45 hours. Together, they produced a batch of 132 garments. Of

> In December, General Motors produced 6,600 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor-hour during that month. 300 laborers were employed at the plant that month. a) How many hou

> Refer to Problems 1.12 and 1.13. Problem 1.12: Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not

> Refer to Problem 1.12. The pay will be $8 per hour for employees. Charles Lackey can also improve the yield by purchasing a new blender. The new blender will mean an increase in his investment. This added investment has a cost of $100 per month, but he w

> Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hours per day making the 120 boxes. a) What is their productivity? b) Chuck and his employees have discussed redesigning the process to improve

> An avant-garde clothing manufacturer runs a series of high-profile, risqué ads on a billboard on Highway 101 and regularly collects protest calls from people who are offended by them. The company has no idea how many people in total see the

> What is the use of Gantt charts in project management?

> McBurger, Inc., wants to redesign its kitchens to improve productivity and quality. Three designs, called designs K1, K2, and K3, are under consideration. No matter which design is used, daily production of sandwiches at a typical McBurger restaurant is

> Use the data in Solved Problem 5.1 to examine what happens to the decision if Sarah King can increase all of Design B yields from 59,000 to 64,000 by applying an expensive phosphorus to the screen at an added manufacturing cost of $250,000. Prepare the m

> Ritz Products’s materials manager, Tej Dhakar, must determine whether to make or buy a new semiconductor for the wrist TV that the firm is about to produce. One million units are expected to be produced over the life cycle. If the product is made, start-

> The product design group of Iyengar Electric Supplies, Inc., has determined that it needs to design a new series of switches. It must decide on one of three design strategies. The market forecast is for 200,000 units. The better and more sophisticated th

> Select a service business that involves interaction between customers and service providers, and create a PCN diagram similar to Figure 5.12. Pick a key step that could be performed either by the service provider or by the customers. Show process positio

> Review strategic process positioning options for the regions in Figure 5.12, discussing the operational impact (in terms of the 10 strategic OM decisions) for: a) Manufacturing the sandwiches. b) Direct interaction. c) Establishing a sandwich buffet. Re

> Prepare a script for telephone callers at the university’s annual “phone-a-thon” fund raiser.

> Prepare a bill of material for (a) a pair of eyeglasses and its case or (b) a fast-food sandwich (visit a local sandwich shop like Subway, McDonald’s, Blimpie, Quizno’s; perhaps a clerk or the manager will provide you with details on the quantity or weig

> Based on the competitiveness ranking developed by the Global Competitiveness Index (www.weforum.org), rank the following countries from most competitive to least: Mexico, Switzerland, the U.S., and China.

> Construct a house of quality matrix for a wristwatch. Be sure to indicate specific customer wants that you think the general public desires. Then complete the matrix to show how an operations manager might identify specific attributes that can be measure

> Given the contribution made on each of the three products in the following table and their position in the life cycle, identify a reasonable operations strategy for each: COMPANY CONTRIBUTION PRODUCT CONTRIBUTION (%: TOTAL ANNUAL CONTRIBUTION DIVIDE

> Prepare a product-by-value analysis for the following products, and given the position in its life cycle, identify the issues likely to confront the operations manager and his or her possible actions. Product Alpha has annual sales of 1,000 units and a c

> What are some of the questions that can be answered with PERT and CPM?

> The following are monthly actual and forecast demand levels for May through December for units of a product manufactured by the D. Bishop Company in Des Moines: What is the value of the tracking signal as of the end of December? MONTH ACTUAL DEMAND

> Sales of tablet computers at Ted Glickman’s electronics store in Washington, D.C., over the past 10 weeks are shown in the table below: a) Forecast demand for each week, including week 10, using exponential smoothing with a 5 .5 (init

> Dave Fletcher, the general manager of North Carolina Engineering Corporation (NCEC), thinks that his firm’s engineering services contracted to highway construction firms are directly related to the volume of highway construction busines

> Thirteen students entered the business program at Sante Fe College 2 years ago. The following table indicates what each student scored on the high school SAT math exam and their grade-point averages (GPAs) after students were in the Sante Fe program for

> Bus and subway ridership for the summer months in London, England, is believed to be tied heavily to the number of tourists visiting the city. During the past 12 years, the data on the next page have been obtained: a) Plot these data and decide if a l

> Using the data in Problem 4.30, apply linear regression to study the relationship between the robbery rate and Dr. Fok’s patient load. If the robbery rate increases to 131.2 in year 11, how many phobic patients will Dr. Fok treat? If the robbery rate dro

> Based on the corruption perception index developed by Transparency International (www.transparency.org), rank the following countries from most corrupt to least: Venezuela, Denmark, the U.S., Switzerland, and China.

> City government has collected the following data on annual sales tax collections and new car registrations: Determine the following: a) The least-squares regression equation. b) Using the results of part (a), find the estimated sales tax collections if

> Accountants at the Tucson firm, Larry Youdelman, CPAs, believed that several traveling executives were submitting unusually high travel vouchers when they returned from business trips. First, they took a sample of 200 vouchers submitted from the past yea

> Rhonda Clark, a Slippery Rock, Pennsylvania, real estate developer, has devised a regression model to help determine residential housing prices in northwestern Pennsylvania. The model was developed using recent sales in a particular neighborhood. The pri

> The following data relate the sales figures of the bar in Mark Kaltenbach’s small bed-and-breakfast inn in Portand, to the number of guests registered that week: a) Perform a linear regression that relates bar sales to guests (not to

> Café Michigan’s manager, Gary Stark, suspects that demand for mocha latte coffees depends on the price being charged. Based on historical observations, Gary has gathered the following data, which show the numbers of these coffees sold over six different

> Mark Gershon, owner of a musical instrument distributorship, thinks that demand for guitars may be related to the number of television appearances by the popular group Maroon 5 during the previous month. Mark has collected the data shown in the following

> Boulanger Savings and Loan is proud of its long tradition in Winter Park, Florida. Begun by Michelle Boulanger 22 years after World War II, the S&L has bucked the trend of financial and liquidity problems that has repeatedly plagued the industry. Dep

> Storrs Cycles has just started selling the new Cyclone mountain bike, with monthly sales as shown in the table. First, co-owner Bob Day wants to forecast by exponential smoothing by initially setting February’s forecast equal to January

> Using the 911 call data in Problem 4.31, forecast calls for weeks 2 through 25 with a trend-adjusted exponential smoothing model. Assume an initial forecast for 50 calls for week 1 and an initial trend of zero. Use smoothing constants of a = .3 and b = .

> Emergency calls to the 911 system of Durham, North Carolina, for the past 24 weeks are shown in the following table: a) Compute the exponentially smoothed forecast of calls for each week. Assume an initial forecast of 50 calls in the first week, and us

> Match the product with the proper parent company and country in the table below: PRODUCT PARENT COMPANY COUNTRY Arrow Shirts a. Volkswagen 1. France Braun Household 2. Great b. Bidermann International Appliances Britain Volvo Autos c. Bridgestone 3.

> Dr. Lillian Fok, a New Orleans psychologist, specializes in treating patients who are agoraphobic (i.e., afraid to leave their homes). The following table indicates how many patients Dr. Fok has seen each year for the past 10 years. It also indicates wha

> The number of disk drives (in millions) made at a plant in Taiwan during the past 5 years follows: YEAR……………DISK DRIVES 1…………………………..140 2…………………………..160 3…………………………..190 4………………………….200 5…………………………..210 a) Forecast the number of disk drives to be made

> North Dakota Electric Company estimates its demand trend line (in millions of kilowatt hours) to be: D = 77 + 0.43Q Where Q refers to the sequential quarter number and Q 5 1 for winter of Year 1. In addition, the multiplicative seasonal factors are as f

> Attendance at Orlando’s newest Disney like attraction, Lego World, has been as follows: Compute seasonal indices using all of the data. GUESTS (IN THOUSANDS) QUARTER GUESTS QUARTER (IN THOUSANDS) Winter Year 1 73 Summer Year 2 124

> George Kyparisis owns a company that manufactures sailboats. Actual demand for George’s sailboats during each of the past four seasons was as follows: George has forecasted that annual demand for his sailboats in year 5 will equal 5,6