A company is investigating the make-or-buy decision for a new item with the following cost structure:
a) At what volumes would each decision be preferred?
b) What is the most economical decision for a volume of 15,000 units per year?
> Eagletrons are all-electric automobiles produced by Mogul Motors, Inc. One of the concerns of Mogul Motors is that the Eagletrons be capable of achieving appropriate maximum speeds. To monitor this, Mogul executives take samples of 8 Eagletrons at a time
> Twelve samples, each containing five parts, were taken from a process that produces steel rods at Emmanuel Kodzi’s factory. The length of each rod in the samples was determined. The results were tabulated and sample means and ranges wer
> A process that is considered to be in control measures an ingredient in ounces. Below are the last 10 samples (each of size n = 5) taken. The population process standard deviation, , is 1.36. a) What is x? b) If z = 3,
> Boxes of Honey-Nut Oatmeal are produced to contain 14 ounces, with a standard deviation of .1 ounces. Set up the 3-sigma x-chart for a sample size of 36 boxes.
> The Head of Department of your college is concerned about the poor outcomes. He has recorded data presented in the table below for 10 students. He first investigated the students’ attendance rate and their grade to understand if there i
> Develop a histogram of the transportation time you took the last ten times you travelled to college.
> Identify and explain six quality inspections in a service with which you have had some experience.
> Choose criteria for a checklist to identify the quality problems (possible defect issues) for manufacturing shirts and blouses.
> Draw a fish-bone chart showing why an assistant you paid to prepare a spreadsheet produced one with numerous errors.
> Alaska Airlines operates in a land of rugged beauty, crystal clear lakes, spectacular glaciers, majestic mountains, and bright blue skies. But equally awesome is its operating performance. Alaska Airlines consistently provides the industry’s number-one o
> Prepare a fish-bone chart explaining how a pizza delivery can arrive late on a Friday or Saturday.
> New World Theatre tracks customer satisfaction in their cinema. In a recent survey, they asked for feedback from the customers where each customer had the opportunity to mention one thing they were displeased with. The outcome was that 797 customers answ
> Your team has been hired by a wallets producer company called Middle Eastern Fine Leather Company (MEFL). MEFL makes wallets and supplies them through several retail outlets in the Middle Eastern region. Recently some problems have emerged: â€
> Your operations management professor is a dedicated professor. He is a perfectionist, and passionate about his job. He joined your university in the fall of 2016, and has since then taught more than 500 students. A committed pedagogue, your professor exp
> Develop an Ishikawa diagram to depict customer dissatisfaction at a pizza restaurant. You should use the four Ms approach.
> Mercedes is assessing which of two windshield suppliers provides a better environmental design for disassembly. Using the tables below, select between PG Glass and Glass Unlimited.
> In Problem S5.7, another alternative (Alternative Four) is investigated, where the city takes total responsibility for the program and employs a number of local people with a variable cost of €1,000 per month. Further, in the spirit of social responsibil
> In a municipality where a significant amount of recyclable waste is generated, the city has granted permits to waste collectors to take charge of the recyclables and generate additional income by selling them. Now the city wants to establish an environme
> Repeat Problem S5.4 but now with an average fuel price of $3.8 per mile. Data from Problem S5.4: A small commercial company wants to buy cars for its sales personnel. After extensive market research, the company is about to decide which one of the follo
> In Problem S5.4, fuel efficiency was determined based on using the cars in city traffic. Estimate the total life cycle cost of each alternative and the crossover point in both miles and years if the cars are used for motorway travelling where the average
> Whether it’s scheduling nurses at Mayo Clinic, pilots at Southwest Airlines, classrooms at UCLA, or servers at a Hard Rock Cafe, it’s clear that good scheduling is important. Proper schedules use an organization’s assets (1) more effectively, by serving
> A small commercial company wants to buy cars for its sales personnel. After extensive market research, the company is about to decide which one of the following two cars to choose from based on the information provided in the following table. Compare the
> Using the information in Problem S5.1, which design alternative is the better environmental choice if the Brew House decided to remove the timer from the Brew Master model? Data from Problem S5.1: The Brew House needs to decide which of two coffee maker
> The table below compares the accuracy of two forecasting methods used by company XYZ to forecast its monthly sales of one of its product. The data pertain to the forecast and actual sales levels over a period of 5 months. What is the value of the trackin
> Using the information in Problem S5.1, which design alternative is the better environmental choice if the Brew House decided to add a timer to the Brew Mini model? The timer revenue and costs are identical to those of the Brew Master. Data from Problem
> Given the following data, use least-squares regression to develop a relation between the number of rainy summer days and the number of games lost by the Boca Raton Cardinal baseball team.
> The accountant at Bintong Chen Coal Distributors, Inc., in Newark, Delaware, notes that the demand for coal seems to be tied to an index of weather severity developed by the U.S. Weather Bureau. When weather was extremely cold in the U.S. over the past 5
> A study to determine the correlation between bank deposits and consumer price indices in Birmingham, Alabama, revealed the following (which was based on n = 5 years of data): a) What is the equation of the least-squares regression line? b) Find the coeff
> The following multiple regression model was developed to predict job performance as measured by a company job performance evaluation index based on a pre-employment test score and college grade point average (GPA): a) Forecast the job performance index f
> Using the new crossover point in Problem S5.18, how many years does it take to reach that point? Data from Problem S5.18: Using the data from Problem S5.16, if gas prices rose to $3.00 per gallon, what would be the new crossover point in miles? Data fr
> Using the date in Problem 4.47, the company wants to find out how closely sales are related to the money spent on advertisements. a) Calculate the coefficient of correlation for the data given in Problem 4.47 and comment on the degree of the linear relat
> The massive 875,000-square-foot Amway Centre in Orlando, Florida, is a state-of-the-art sports entertainment centre. While it is the home of the Orlando Magic basketball team, it is a flexible? venue designed to accommodate a vast array of entertainment.
> Using the data from Problem S5.16, if gas prices rose to $3.00 per gallon, what would be the new crossover point in miles? Data from Problem S5.16: Given the data in Problem S5.15 and an alternative hybrid vehicle with the specifications shown below: a)
> Based the crossover point in miles found in Problem S5.16, what is this point in years? Data from Problem S5.16: Given the data in Problem S5.15 and an alternative hybrid vehicle with the specifications shown below: a) What is the crossover point in mil
> Given the data in Problem S5.15 and an alternative hybrid vehicle with the specifications shown below: a) What is the crossover point in miles? b) Which vehicle is having the lowest cost until the crossover point is reached? Data from Problem S5.15: Har
> Hartley Auto Supply delivers parts to area auto service centres and is replacing its fleet of delivery vehicles. What is the total vehicle life cycle cost of this gasoline engine truck given the information provided in the following table?
> Janice Carrillo, a Gainesville, Florida, real estate developer, has devised a regression model to help determine residential housing prices in north-eastern Florida. The model was developed using recent sales in a particular neighbourhood. The price (Y)
> Kalamia Company tries to forecast the value of its business based on money spent on advertising. The company has been tracking the relationship between sales and money spent on advertising, summarized in the table below (all numbers expressed in thousand
> Green Forever’s challenge (see Problem S5.12) is to determine which design alternative is the better environmental choice if it uses a different battery for the Premium Mate. The alternate battery revenue and costs are as follows: a) Wh
> Green Forever (see Problem S5.12) has decided to add an automatic string feeder system with cost and revenue estimates as shown below to the GF Deluxe model. a) What is the new revenue retrieval value for each model? b) Which model is the better environm
> Green Forever, a manufacturer of lawn equipment, has preliminary drawings for two grass trimmer designs. Charla Fraley’s job is to determine which is better environmentally. Specifically, she is to use the following data to help the com
> A Southern Georgia school district is considering ordering 53 propane-fuelled school buses. “They’re healthier, they’re cleaner burning, and they’re much quieter than the diesel option,” said a school administrator. Propane-powered buses also reduce gree
> In 2018, George Wright started the Old Oregon Wood Store to manufacture Old Oregon tables. Each table is carefully constructed by hand using the highest-quality oak. Old Oregon tables can support more than 500 pounds, and since the start of the Old Orego
> A careful analysis of the cost of operating an automobile was conducted by accounting manager Dia Bandaly. The following model was developed: y^ = 4,000 + 0.20x Where y^ is the annual cost and x is the miles driven. a) If the car is driven 15,000 miles t
> The director of the Riley County, Kansas, library system would like to forecast evening patron usage for next week. Below are the data for the past 4 weeks: a) Calculate a seasonal index for each day of the week. b) If the trend equation for this problem
> Thamer Almutairi, owner of Almutairi’s Department Store, has used time-series extrapolation to forecast retail sales for the next 4 quarters. The sales estimates are $120,000, $140,000, $160,000, and $180,000 for the respective quarters. Seasonal indices
> Given the following data, use least-squares regression to derive a trend equation. What is your estimate of the demand in period 7? In period 12?
> Sales of industrial vacuum cleaners at Larry Armstrong Supply Co. over the past 13 months are shown below: a) Using a moving average with three periods, determine the demand for vacuum cleaners for next February. b) Using a weighted moving average with t
> Environmentally conscious Susan has been told that a new electric car will only generate 6 ounces of greenhouse gases (GHGs) per mile, but that a standard internal combustion car is double that at 12 ounces per mile. However, the nature of electric cars
> Registration numbers for an accounting seminar over the past 10 weeks are shown below: a) Starting with week 2 and ending with week 11, forecast registrations using the naïve forecasting method. b) Starting with week 3 and ending with week 1
> Perform a “product-by-value” analysis on products A, B, C, D, and E.
> A company has developed a promising new product and examines the following three alternatives of manufacturing. Alternative 1 is to buy a semiautomatic machine with an initial cost of €130,000. Alternative 2 is to buy a fully automatic machine with an in
> Wheeled Coach, the world’s largest manufacturer of ambulances, builds thousands of different and constantly changing configurations of its products. The custom nature of its business means lots of options and special designs—and a potential scheduling an
> Prepare a bill of material for a mechanical pencil.
> Prepare a bill of material for a computer mouse (GeniMouse).
> Prepare a bill of material for the table illustrated:
> Prepare a bill of material for a wooden pencil, complete with eraser.
> Given the project diagram that follows, see graph (a) and the details of the accompanying table. How can you reduce the completion time of the project by 4 weeks in the most economical way?
> Prepare a bill of material and an assembly chart for a salad of your own choosing.
> A logistics company has been in business for 4 years and wants to develop monthly indices. Monthly inventory quantities for these years are shown in the table below. a) Develop monthly indices. b) Estimate next year’s forecast for the m
> Janice Eliasson must complete the activities in the following table to finish her consulting project. a) Draw the appropriate PERT diagram. b) Find the critical path and project completion time. c) Find the probability that the project will take more tha
> A small software development project at Krishna Dhir’s firm has five major activities. The times are estimated and provided in the following table. a) Find the expected completion time for this project. b) What variance value would be u
> A warehouse manager wants to estimate the inventory moving in and out of his warehouse each week. An analyst suggests using a 3-, 5-, or 7-week moving average. However, before deciding, he wants to compare the accuracy of each for the most recent 10-week
> With vast experience at venues such as the American Airlines Arena (in Miami), the Kentucky Derby, and Super Bowls, Chef John Nicely now also plans huge culinary events at Orlando’s Amway Centre, home of the Orlando Magic basketball tea
> Regal Marine, one of the U.S.’s 10 largest power-boat manufacturers, achieves its mission—providing luxury performance boats to customers worldwide—using the strategy of differentiation. It differentiates its products through constant innovation, unique
> Develop the BOM for product XYZ made from two units of B, five units of C, and four units of D. B is sub assembled from six units of E and two units of F; C from four units of E and three units of D, and D from two units of G and four units of H.
> The actual demand for the patients at Providence Emergency Medical Clinic for the first 6 weeks of this year follows: Clinic administrator Dara Schniederjans wants you to forecast patient demand at the clinic for week 7 by using this data. You decide to
> Refer to Solved Problem 4.1. Using smoothing constants of .6 and .9, develop forecasts for the sales of VW Beetles. What effect did the smoothing constant have on the forecast? Use MAD to determine which of the three smoothing constants (.3, .6, or .9) g
> A local retailer is thinking of using exponential smoothing to forecast one of his well-selling products. His problem is that he is not sure if he should use a low or a high value of a. For this reason, he uses the historical data available and tries wit
> The following represent activities in Marc Massoud’s Construction Company project. a) Draw the network to represent this situation. b) Which activities are on the critical path? c) What is the length of the critical path?
> When is the application of a multi-domestic strategy most appropriate? What kind of industries can this be applied to?
> An air conditioner factory makes three different types of air conditioners: the ceiling type, the cassette type, and the wall mounted type. Weekly sales of each type are 2, 4, and 6 units at a price of €350, €450, and €500 each, respectively. The ceiling
> A furniture manufacturing company working on a 40-hour week makes 100 chairs. The sales price is €70 each, and the company has the following costs: ◆ Direct materials: €700 ◆ Direct labour: €300 ◆ Overhead: €500 a) Calculate the productivity of the compa
> A production operation is making 150 pieces of a product by engaging 5 workers for 300 hours. However, 40% of the units appear to have various quality problems and the company decides to sell them as seconds at a price of €50 each when the normal unit is
> Mr. Achebe, who runs his photocopy business working 8 hours per day, processes 100 scripts in a day. He estimates his labour cost to be €9 per hour. Also, he has estimated that the total material cost for each script is approximately €2 while the daily e
> Hill’s Automotive, Inc., is an aftermarket producer and distributor of automotive replacement parts. Art Hill has slowly expanded the business, which began as a supplier of hard-to-get auto air-conditioning units for classic cars and hot rods. The firm h
> You are about to establish your own business; your strategy is to focus on your core business and outsource the customer service to an external service provider to handle the customers’ requirement queries and complaints. Based on an ex
> As an operations management student, you have been hired by a local restaurant to perform a factor-rating analysis to help the restaurant choose an outsourcing provider. You have identified three important factors: quality, taste, and delivery time; givi
> Refer to Problem 4.2. Develop a forecast for years 2 through 12 using exponential smoothing with a = .4 and a forecast for year 1 of 6. Plot your new forecast on a graph with the actual data and the naive forecast. Based on a visual inspection, which for
> The table below shows the activities, immediate predecessors, and activity durations of a project. Draw the AON project network. How long would it take to complete this project? What is the length of the critical path?
> Potamia Construction Co. (PCC) is developing plans to erect a new hospital building. Potamia Construction Co. has established the project activities and their immediate predecessor activities together with their estimated activity durations according to
> Draw the AON project network using the following information: How long would it take to complete this project? Which activities are included on the critical path?
> Thompson Industries’ supply chain manager, Xun Xu, wishes to better understand the quality and on-time performance of his supply base. He suggests that you, using the data in Figure G.5, use Excel to create a PivotTable that displays th
> Thompson Industries’ CEO, Gihan Edirisinghe, wishes to identify the top-performing suppliers to present with a performance award. He suggests that you, using the data in Figure G.5, use Excel to apply Conditional Formatting to the &acir
> Thompson Industries’ supply chain manager, Xun Xu, wishes to identify suppliers with the largest and smallest purchase levels, so he knows where to focus his purchasing resources. He suggests that you, using the data in Figure G.5, use
> Thompson Industries’ supply chain manager, Xun Xu, wishes to understand the makeup of his supply base better. He suggests that you, using the data in Figure G.5, use Excel to create a PivotTable that displays the number of suppliers, gr
> Revenue management was once the exclusive domain of the airline industry. But it has since spread its wings into the hotel business, auto rentals, and now even professional sports, with the San Francisco Giants, Boston Celtics, and Orlando Magic as leade
> Using the data in Figure G.8(b), supply chain manager Jon Jackson wishes to use Excel’s Conditional Formatting to highlight any entries in column B that are at least as large as this year’s threshold level for distribu
> Using Figure G.2, analytics manager Vicky Luo wishes to set up Conditional Formatting in Excel to ensure that all the suppliers have different supplier numbers in column B. Which Conditional formatting ‘Rule Type’ shou
> Using Figure G.2, enter $6,000 into cell E8. In that spreadsheet, any new supplier (with a ‘Y’ in column J) should have its total purchases in column D equal to its change from the previous month in column E. Analytics
> For the ‘RejShip’ column (I) in Figure G.5: a) Determine the upper and lower limits for a 3-standard-deviation accuracy check. b) Which, if any, values fall outside the limits computed in part (a)? Data from Figure G5
> Operations manager Phil Witt wishes to apply the Blue – White – Red color scale using Excel’s Conditional Formatting to the following data: a) Which plant will be coloured the darkest shade of blue? b
> For the ‘Change’ column (E) in Figure G.5: a) Determine the upper and lower limits for a 3-standard-deviation accuracy check. b) Which, if any, values fall outside the limits computed in part (a)? Data from Figure G5:
> Professor Mary Beth Marrs took 6 hours to prepare the first lecture in a new course. Traditionally, she has experienced a 90% learning curve. How much time should it take her to prepare the 15th lecture?
> Elizabeth Perry, a student at SUNY, bought 6 bookcases for her dorm room. Each required unpacking of parts and assembly, which included some nailing and bolting. Elizabeth completed the first bookcase in 5 hours and the second in 4 hours. a) What is her
> Manceville Air has just produced the first unit of large industrial compressor that incorporated new technology in the control circuits and a new internal venting system. The first unit took 112 hours of labor to manufacture. The company knows from past
> Refer to Problem E.5. Beth Zion Hospital has just been informed that only the first 10 transplants must be performed at the hospital’s expense. The cost per hour of surgery is estimated to be $5,000. Again, the learning rate is 80% and the first surgery
> Andrew-Carter, Inc. (A-C), is a major Canadian producer and distributor of outdoor lighting fixtures. Its products are distributed throughout South and North America and have been in high demand for several years. The company operates three plants to man
> Beth Zion Hospital has received initial certification from the state of California to become a center for liver transplants. The hospital, however, must complete its first 18 transplants under great scrutiny and at no cost to the patients. The very first
> If it took 563 minutes to complete a hospital’s first cornea transplant, and the hospital uses a 90% learning rate, what is the cumulative time to complete: a) the first 3 transplants? b) the first 6 transplants? c) the first 8 transplants? d) the first