Question: Demand for jelly doughnuts on Saturdays at

> Corruption and bribery are common in some countries. Would you avoid locating in such a country,or locate there and deal with it? If the latter, how would you deal with it?

> A Las Vegas supermarket bakery must decide how many wedding cakes to prepare for the upcoming weekend. Cakes cost $33 each to make, and they sell for $60 each. Unsold cakes are reduced to half-price on Monday, and typically one-third of those are sold. A

> The owner of a fast-food franchise has exclusive rights to operate in a medium-sized metropolitanarea. The owner currently has a single outlet open, which has proved to be very popular, and thereare often waiting lines of customers. The owner is therefor

> What are the trade-offs in the following? a. Using self-directed teams instead of a more conventional approach with occasional use of teams. b. Deciding how often to update standard times due to minor changes in work methods. c. Choosing between time stu

> Prepare a run diagram for this emergency call data. Use five-minute intervals (i.e., count the calls received in each five-minute interval. Use intervals of 0 to 4, 5 to 9, etc.). Note: Two or more calls may occur in the same minute; there were three ope

> Why is management of technology important?

> In what ways does technology have an impact on job design?

> Who uses the results of work measurement in an organization, and how do they use them?

> Explain the term knowledge-based pay system.

> Select one of the quality gurus and briefly describe his major contributions to quality management.

> a. What is ergonomics and why is it important in job design? b. Explain how it can relate to quality of work life.

> a. Contrast the meanings of the terms job enlargement and job enrichment. b. What is the purpose of approaches such as job enlargement and job enrichment?

> What are some of the main advantages and disadvantages of specialization from a management perspective? From a worker’s perspective?

> A manager is going to purchase new processing equipment and must decide on the number of spare parts to order with the new equipment. The spares cost $200 each, and any unused spares will have an expected salvage value of $50 each. The probability of usa

> What is work sampling? How does it differ from time study?

> Comment on the following: “At any given instant, the standard times for many jobs will not be strictly correct.” a. Why is this so? b. Does this mean that those standards are useless? Explain.

> Name some reasons why methods analyses are needed. How is methods analysis linked to productivity improvements?

> What are the main advantages of a process layout? The main disadvantages?

> Some Japanese firms have a policy of rotating their managers among different managerial jobs. In contrast, American managers are more likely to specialize in a certain area (e.g., finance or operations). Discuss the advantages and disadvantages of each o

> Briefly describe the five process types, and indicate the kinds of situations in which each would be used.

> Define and contrast control limits, specifications, and process variability.

> What are self-directed work teams? What are some potential benefits of using these teams?

> Explain briefly how techniques described in this chapter could be used to improve operations. Be specific about which techniques could be used, how they could be used, and why you think those techniques would be helpful.

> Healthy Hots, a fast-food restaurant that offers heart-healthy food, is experiencing several difficulties with operations. Although customers like the idea of heart-healthy foods, and surveys indicate that customers find the food to be tasty and appealin

> Name three major trade-offs in process selection.

> Demand for rug-cleaning machines at Clyde’s U-Rent-It is shown in the following table. Machines are rented by the day only. Profit on the rug cleaners is $10 per day. Clyde has four rug-cleaning machines. Demand ………………..Frequency 0 …………………………………..…..30

> In what ways does technology have an impact on process selection? How can technology impact layout decisions?

> Who needs to be involved in layout design?

> Who needs to be involved in process selection?

> Many companies outsourced their manufacturing activities to Foxconn due to its low labor costs. Does Foxconn’s shift to automation make it likely that some of those companies will reconsider outsourcing in favor of shifting to automation? What are some r

> Prepare a run chart similar to Figure 9.11 for the occurrences of defective computer monitors based on the following data, which an analyst obtained from the process for making the monitors. Workers are given a 15-minute break at 10:15 a.m. and 3:15 p.m.

> If both run tests are used, and neither reveals non randomness, does that prove that the process is random? Explain.

> A large law firm uses an average of 40 boxes of copier paper a day. The firm operates 260 days a year. Storage and handling costs for the paper are $30 a year per box, and it costs approximately $60 to order and receive a shipment of paper. a. What order

> If small samples can reveal something that large samples might not, why not just take small samples in every situation?

> Assuming the problem can be found and corrected, what impact do you think this would have on the capability of the process? Compute the potential process capability using the second data set.

> What action would you suggest to avoid the problem of workarounds?

> a. What is ISO 9000, and why is it important for global businesses to have ISO 9000 certification? b. Compare the Baldrige Award and ISO certification. If an organization were going to seek both, which one should it seek first? Why?

> What trade-offs are involved in deciding on whether to offer a product or service guarantee?

> Many product reviews are available on the Internet. Two examples are reviews on electronics productssuch as DVD players and high-definition televisions. There are often both positive and negativereviews. a. Do such reviews (positive and negative) influen

> Use the dimensions of quality to describe typical characteristics of these products and services: a. A television set b. A restaurant meal (product) c. A restaurant meal (service) d. Painting a house e. Surgery and post surgery care

> What are some possible consequences of poor quality?

> Name several ways that technology has had an impact on quality.

> As a manager, how would you deal with the possibility that customer satisfaction does not always lead to customer retention?

> A bakery buys flour in 25-pound bags. The bakery uses 1,215 bags a year. Ordering cost is $10 per order. Annual carrying cost is $75 per bag. a. Determine the economic order quantity. b. What is the average number of bags on hand? c. How many orders per

> Suppose you are going to have a prescription filled at a local pharmacy. Referring to the dimensions of service quality for each dimension, give an example of how you would judge the quality of the service.

> A shop works a 400-minute day. The manager of the shop wants an output of 200 units per day for the assembly line that has the elemental tasks shown in the table. Do the following: a. Construct the precedence diagram. b. Assign tasks according to the mos

> A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh strawberries can be reasonably approximated using a normal distribution with a mean of 40 quarts per day and a standard deviat

> 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 for $2.40 per pound. Daily demand can be approximated b

> 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 disposal costs are estimated to be 145 percent of the purch

> 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). Holding Cost Estimated Annual Unit Ordering Cost Item Demand (%) Price H4-010 20,000 50

> 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 weeks a year, and the weekly usage rates for both 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 units per day, and the standard deviation of demand i

> 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, what service level is achieved with the hospital&acirc

> 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 order quantity? b. What level of safety stock is approp

> 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 problem.

> 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 tape is $1, and carrying costs are 40 cents per roll

> For the given set of tasks, do the following: a. Develop the precedence diagram. b. Determine the minimum cycle time and then calculate the cycle time for a desired output of 500 units in a seven-hour day. Why might a manager use a cycle time of 50 secon

> Ned’s Natural Foods sells unshelled peanuts by the pound. Historically, Ned has observed that daily demand is normally distributed with a mean of 80 pounds and a standard deviation of 10 pounds. Lead time also appears normally distributed with a mean of

> A small copy center uses five 500-sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by a normal distribution with a mean of five boxes per week and a standard deviation of one-half box per week. Two weeks are requi

> The manager of a car wash received a revised price list from the vendor who supplies soap, and a promise of a shorter lead time for deliveries. Formerly the lead time was four days, but now the vendor promises a reduction of 25 percent in that time. Annu

> One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store manager must determine when to replenish it. The manager wants a probability of at least 96 percent of not having a s

> A company uses 85 circuit boards a day in a manufacturing process. The person who orders the boards follows this rule: Order when the amount on hand drops to 625 boards. Orders are delivered approximately six days after being placed. The delivery time is

> The injection molding department of a company uses an average of 30 gallons of special lubricant a day. The supply of the lubricant is replenished when the amount on hand is 170 gallons. It takes four days for an order to be delivered. Safety stock is 50

> Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 21 gallons per week and a standard deviation of 3.5 gallons per week. The new manager desires a service level of 90 percent. Lead time

> . Given this information: Lead-time demand = 600 pounds Standard deviation of lead time demand = 52 pounds (Assume normality.) Acceptable stockout risk during lead time = 4 percent a. What amount of safety stock is appropriate? b. When should this ite

> College students trying to register for a course sometimes find that the course has been closed, or the section they want has been closed. Prepare a cause-and-effect diagram for this problem.

> Given this information: Expected demand during lead time = 300 units Standard deviation of lead time demand = 30 units Determine each of the following, assuming that lead time demand is distributed normally: a. The ROP that will provide a risk of sto

> A newspaper publisher uses roughly 800 feet of baling wire each day to secure bundles of newspapers while they are being distributed to carriers. The paper is published Monday through Saturday. Lead time is six workdays. What is the appropriate reorder p

> Explain the consequences of task time variability on line balancing.

> A manager just received a new price list from a supplier. It will now cost $1.00 a box for order quantities of 801 or more boxes, $1.10 a box for 200 to 800 boxes, and $1.20 a box for smaller quantities. Ordering cost is $80 per order and carrying costs

> A company will begin stocking remote control devices. Expected monthly demand is 800 units. The controllers can be purchased from either supplier A or supplier B. Their price lists are as follows: Ordering cost is $40 and annual holding cost is 25 perc

> A manufacturer of exercise equipment purchases the pulley section of the equipment from a supplier who lists these prices: less than 1,000, $5 each; 1,000 to 3,999, $4.95 each; 4,000 to 5,999, $4.90 each; and 6,000 or more, $4.85 each. Ordering costs are

> A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8 per stone for quantities of 600 stones or more, $9 per stone for orders of 400 to 599 stones, and $10 per stone for lesser quantities. The jewelry firm

> A mail-order house uses 18,000 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies. Determine the following: a. The optimal order quantity b. The number of orders per year Number of

> A company manufactures hair dryers. It buys some of the components, but it makes the heating element, which it can produce at the rate of 800 per day. Hair dryers are assembled daily, 250 days a year, at a rate of 300 per day. Because of the disparity be

> A company is about to begin production of a new product. The manager of the department that will produce one of the components for the product wants to know how often the machine used to produce the item will be available for other work. The machine will

> Prepare a flowchart that describes going to the library to study for an exam. Your flowchart should include these items: finding a place at the library to study; checking to see if you have your book, paper, highlighter, and so forth; traveling to the li

> A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 20 tons per day. The capacity for producing the product is 50 tons per day. Setup costs $100, and storage and handling costs are $5 per ton a year. The firm operates

> The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF supplies hot dogs to local restaurants at a steady rate of 250 per day. The cost to prepare the equipment for producing hot dogs is $66. Annual holding costs are 45 c

> A food processor uses approximately 27,000 glass jars a month for its fruit juice product. Because of storage limitations, a lot size of 4,000 jars has been used. Monthly holding cost is 18 cents per jar, and reordering cost is $60 per order. The company

> Twelve tasks, with times and precedence requirements as shown in the following table, are to be assigned to workstations using a cycle time of 1.5 minutes. Two heuristic rules will be tried: (1) greatest positional weight, and (2) most follow

> A manager receives a forecast for next year. Demand is projected to be 600 units for the first half of the year and 900 units for the second half. The monthly holding cost is $2 per unit, and it costs an estimated $55 to process an order. a. Assuming tha

> A produce distributor uses 800 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once a m

> Bruegger’s maintains relatively little inventory at either its plants or its retail stores. List the benefits and risks of this policy.

> Bruegger’s has bagel-making machines at its plants. Another possibility would be to have a bagel-making machine at each store. What advantages does each alternative have?

> Quality is very important to Bruegger’s. a. What features of bagels do customers look at to judge their quality? b. At what points in the production process do workers check bagel quality? c. List the steps in the production process, beginning with purch

> How can managers use the results of A-B-C classification?

> Prepare a scatter diagram for each of these data sets and then express in words the apparent relationship between the two variables. Put the first variable on the horizontal axis and the second variable on the vertical axis. a. Age 24 30 22 25 33 27

> Why might it be inappropriate to use inventory turnover ratios to compare inventory performance of companies that are in different industries?

> What potential benefits and risks do RFID tags have for inventory management?

> Briefly describe each of the costs associated with inventory.

> What are the requirements for effective inventory management?

> As part of a major plant renovation project, the industrial engineering department has been asked to balance a revised assembly operation to achieve an output of 240 units per eight-hour day. Task times and precedence relationships are as follows: Do e

> What are some ways in which a company can reduce the need for inventories?

> What is the single-period model, and under what circumstances is it appropriate?

> Explain how a decrease in setup time can lead to a decrease in the average amount of inventory a firm holds, and why that would be beneficial.

> The purchasing agent for a company that assembles and sells air-conditioning equipment in a Latin American country noted that the cost of compressors has increased significantly each time they have been reordered. The company uses an EOQ model to determi

> Describe briefly the A-B-C approach to inventory control.

> Prepare a cause-and-effect diagram to analyze why a machine has produced a large run of defective parts.

> What is meant by the term service level? Generally speaking, how is service level related to the amount of safety stock held?