Question: Dreyfus Company has a policy of counting

> The following data show the number of laptop computers sold each month at a retail store: Month …………………………… Unit Sales January ………………………….…………. 200 February ………………………………….... 230 March …………………………………….…. 225 April ……………………………………….…. 240 May ……………………………………

> Assume you are forecasting with an exponential smoothing model using  = 0.6. How much weight is placed on the most recent actual demand? How much weight is given to the demand one time period older than the most recent data? How much weight is given to

> Use the table in problem 8 to answer the following question. A transportation manager must ship orders of materials weighing three pounds each to destinations in each of the seven zones listed in the table. The daily inventory holding rate is $7.50 per d

> The following table provides shipping rates for packages using UPS next day air or ground service options. The rates vary according to both the weight of the package and the distance of the shipment (larger numbered zones are farther away). Note that the

> A company needs to ship 500 men’s suits valued at $600 each to its distribution center. Annual inventory carrying costs are 20%. Shipment by truck would take 8 days at a cost of $500. Shipment by air would take 2 days at a cost of $2,000. If cost is the

> Richard's Sporting Goods needs to fill an online order for a gross (144) of hockey sticks. The manager is considering shipping the order by truck to the customer in Wisconsin, at a carrier charge of $75. The delivery will take five days and the order is

> You are shipping 200 diamonds to a customer located 2,000 miles away. The average value of the diamonds is $1,500. You can ship via air for $500 and the diamonds will arrive in two days or you can ship via a specialty ground carrier for $200 and the diam

> Using the rates in problem 8, suppose you have eight shipments of 900 pounds each that the carrier will consolidate into one shipment, for an additional charge of $200 (total). Should you agree to this?

> In an apparel factory, every time a sewing machine breaks, the symptom is recorded. In the past 30 days, all of the sewing machine breakdowns were recorded in the table below. Create a check sheet to organize and analyze these data.

> A trucking company publishes the following rates: Shipment Weight ………………. Cost per 100 Pounds Less than 500 lbs. …………………………..…….. $20.00 500–999 lbs. ……………………………………….. $18.00 1,000–4,999 lbs. ………………………………….. $15.50 5,000–9,999 lbs. ………………………………….. $14.00

> Suppose you have three shipments to make. One shipment has a weight of 3,000 pounds, the second weighs 7,000 pounds, and the third weighs 14,000 pounds. The transportation rates are: $18.00/cwt. for shipments of 1,000-5,000 pounds, $16.00/cwt. for 5,000-

> Atlas Corporation is considering a distribution center which will serve three primary market areas: Dallas, Texas; Atlanta, Georgia; and, St. Louis, Missouri. Atlas has determined that the latitude, longitude and populations of the three metropolitan are

> Determine the center-of gravity location for a company that wants to serve customers located in Chicago, Detroit, Indianapolis, and Cincinnati. To do this, you can find the X and Y coordinates by looking at the longitude and latitude for each city. Estim

> A manufacturing company wants to locate its new plant to facilitate shipping from its suppliers. Using the information below, determine the location using the center of gravity.

> Creative Crafts needed to determine where to locate a new warehouse to serve its retail stores in Ohio. Find the center of gravity location using the following information.

> Dansville Cabinets is considering a new warehouse to serve its major markets. Find the center-of-gravity using the following information:

> Using the rate schedule in the table in problem 8, determine whether or not economies of scale (weight) and economies of distance exist. (Hint: assume that distance from each zone to the next farthest zone is approximately constant across all zones.)

> Suppose Jones Company has orders from three customers located in the same market area. One order has a total weight of 4,000 pounds, the second weighs 8,000 pounds, and the third weighs 14,000 pounds. The transportation carrier quotes a freight rate of $

> Simply Chocolate, a retailer selling gourmet candy, has decided to expand its market by adding online sales. The supply and marketing managers must select a company to develop a website. Based on an initial screening, the team has narrowed the list to fo

> Using the date from problem 1, develop a check sheet by different class and analyze the results. Refer to the Problem Data 1:

> As the buyer for the city of Perrysburg, you are evaluating a supplier for garbage cans to be used in the city’s parks. Three suppliers returned acceptable bids within the allotted period. Based on these ratings from the supplier assess

> Your company has used competitive bidding to select a supplier for janitorial services. Three suppliers returned acceptable bids within the allotted period. Based on these ratings from the supplier assessment, which supplier appears to be the best? Why?

> The Big Apple Pizza Company, a manufacturer and distributor of frozen food products, is introducing a new frozen Chicago-style pizza. The new sauce for this pizza is a unique, special recipe and it resulted in very positive taste test ratings in market r

> Watch NU is a company that designs and manufacturers drones for military use. The supply manager is getting ready to renegotiate the contract with the security service provider that it uses for its offices and manufacturing plant. Three suppliers respond

> A construction equipment manufacturer is considering outsourcing assembly of dashboard components. Strategically the company is focusing on design and final equipment assembly. The company expects to make 75,000 units next year. The total variable costs

> A furniture manufacturer is assessing if it should make or buy the wooden frames for upholstered dining room chairs. The forecast is for 100,000 chairs to be produced per year. The fixed costs per year to make the frames are $150,000 and the variable cos

> An online retailer must decide if it should insource or outsource its website maintenance. The company estimates that 4,000 hours per year will be needed to maintain its website. To insource maintenance requires $25,000 in fixed costs per year and $27/ho

> The senior buyer at How Does Your Garden Grow Inc needs to select a supplier for plastic patio chairs for a one-year contract. The chairs will be shipped to the company’s distribution center in Toledo Ohio. Three potential suppliers hav

> The supply manager at a dishwasher manufacturer is assessing the company should purchase the pump from a supplier or assemble the pump in-house. Forecasts suggest that 15,000 pumps are needed per year. The annual fixed costs to assemble the pumps are$120

> Jones Company also found the following information about delivery to customers. Late deliveries were made for 8 percent of the orders. Early arrivals, which are unacceptable to customers, occurred for 2 percent of the orders. The company also experienced

> Using the data from problem 1, develop a check sheet and analyze the results. Refer to the Proble

> Jones Company found the following results when analyzing its delivery performance.

> In addition to the information concerning product availability, ABBA collected the following data concerning customer service performance: Late delivery—6 percent Damage—1 percent Incorrect documentation—4 percent Assuming these are the critical attribut

> ABBA Inc. collected the following data concerning orders and shipments during the most recent year. How well did ABBA perform in providing product to its customers?

> In the problem above, suppose performance on two of the factors that had been 95 percent falls to 90 percent. What is the impact on perfect order performance?

> Suppose a firm, in discussions with customers, learns that customers identify eight factors that they evaluate for every order they receive from suppliers. The firm then finds that its performance is 95 percent on six of these factors and 92 percent on t

> The following quarter, Aldo’s senior executive was interested in knowing whether performance had improved. The following table presents order and shipping data collected for the next quarter. How would you answer the senior executive?

> Aldo Inc. was reviewing its quarterly performance in providing service to customers. An analysis of order and shipping data was prepared and is shown in the table below. How well did Aldo perform in unit, line, and order fill rate?

> Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand = 20 units per day Average lead time = 30 days Item unit cost = $50 for orders of less than 200 units Item unit cost = $48 for orders of

> Suppose Johnson Plastics (in solved problem 5) reduces setup cost to $20. Rework the problem.

> Suppose Thomas Toys Ltd. (in solved problem 4) decides to reduce the review period from 21 days to 10 days. Rework the problem assuming everything else remains the same.

> Suppose management of Foods Galore (in solved problem 3) found that it had drastically underestimated its annual inventory carrying cost. Rather than the 10 percent carrying cost assumed in the solved problem, carrying cost is actually 25 percent. Rework

> Complete an ABC analysis of the five items that Jones Corporation carries in inventory.

> Again, using the data for Jones Corporation in problems 2 and 3, suppose Jones believes that in the upcoming year, the rate of sales expected for each of the five items is as follows: Item 1 = 4,000 units per day Item 2 = 2,000 units per day Item 3 = 15,

> Suppose Jones Corporation in the above problem determined that its annual inventory carrying cost = 18 percent. The item unit cost was as follows: Item 1 = $25.00 Item 2 = $60.00 Item 3 = $5.00 Item 4 = $10.00 Item 5 = $1.00 Compute the dollar values for

> You are the buyer for your university bookstore. One of the textbooks has a cost to you of $100 and you sell it to students for $140. Any copies of the book that you order and do not sell to students can be returned to the publisher for an average $80 cr

> After you reduce your order cost, as described in problem 24, the supplier in problem 23 changes its pricing policy to a standard $4.75 per unit, regardless of the order quantity. What is the impact of this policy change on the other variables?

> Suppose in problem 23, you were able to reduce your order cost to $10. What is the impact of this change on the other variables?

> You manage inventory for your company and use a continuous review inventory sys-tem to control reordering items for stock. Your company is open for business 300 days per year. One of your most important items experiences demand of 20 units per day, norma

> Jasper’s Grocery places an order for Monster every three weeks. Once the order is placed, delivery to the store typically occurs in one week. Average demand is 100 cases per week and the standard deviation of demand is 20 cases per week. The store policy

> You have a one-time chance to purchase an item for $5. The item can be sold to customers for $30. After one day, the item has no salvage value because it becomes rot-ten at the end of the day. It will then cost you $15 per item to properly dispose of any

> The specification for the weight of a box of cereal is 16.2 oz ± .1 oz. The actual mean and standard deviation from a sample of 200 boxes is 16.1 oz. and 0.05 oz., respectively. What are the Cp and Cpk?

> The following table contains data about the inventory for five items at Jones Corporation. Complete the missing items in the table.

> Korner Hardware manager Emerson Jones is interested in determining how many nativity scenes to order for the 10-day holiday season. Past experience indicates that demand for these nativity scenes averages eight per day during this 10-day period, with a s

> Suppose you are a corporate buyer. One of your suppliers delivers a particular part in 12 days on average, with a standard deviation of 3. The daily usage averages 20 units per day with a standard deviation of 4. What is the standard deviation of demand

> Freeport Corporation finds that average demand for surfboards is 10 units per day, with a standard deviation of 3 units. Lead time from the supplier averages 12 days, with a standard deviation of 2 days. The item costs $50 and the inventory carrying cost

> Suppose the supplier in problem 15 decides to offer a volume discount. It now will sell the crystal figurines at $8 per unit for orders of 250 units or more. Answer items (a) through (e) based on this revised set of data

> Johnson Corporation has the following information about a product that it carries in stock: Average demand = 40 units per day Average lead time = 15 days Item unit cost = $55 for orders of less than 400 units Item unit cost = $50 for orders of 400 units

> 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 the item averages six days. An analysis of demand and l

> 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 to be $50 and inventory carrying cost is 20 per-cent.

> 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 purchased in quantities less than 100 and $48 for 100 items o

> 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 per day, with a standard deviation of 12 units Averag

> 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 0.2 grams. A sample of 100 pens is taken each day. Ma

> 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 cost is 15 percent annually. a. What was the inventory

> 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. Currently, each store maintains 50 units of safety stock on

> 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 time to customers, managers at Thor want to double the

> 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 of demand from 100 to 50. a. Should she decide to pur

> 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 unsold T-shirts to a local charity for a tax write-off o

> Hartley Incorporated buys plastic resin by the ton and then packages and distributes it in smaller amounts to industrial users. The resin typically costs $50 per ton, and Hartley uses 80,000 tons each year. Placing an order for more resin costs $500 in a

> Suppose that Steve in problem 32 does not want to have to continuously monitor the company’s cash account. He instead would like to do a monthly audit (every 30 days) and then order the appropriate amount of cash each time. If the June monthly audit show

> Steve Carter is CFO of a small temporary labor supplier. Steve is setting up an account to hold cash that the company needs to pay its monthly bills. Cash needs average $10,000 each month with a standard deviation of daily demand of $50. Steve estimates

> After implementing the change described in problem 30, Bryson Carpet Mills now finds that it can reduce its setup cost to $500. Does this further change the calculations of production order quantity? How?

> In problem 29, suppose Bryson Carpet Mills develops a production process that is most efficient when 6,000 yards per day are produced at a cost of $4.50 per yard. Everything else remains the same. How does this affect the calculation in problem 29?

> Using the data from problem 1, you have been asked to develop an overall cause-and-effect chart explaining why students arrived so early.

> Bryson Carpet Mills produces a variety of different carpets. Changing from production of one carpet to another involves a setup cost of $1,000. One particular carpet costs $5 per yard to produce. Annual demand for this style is 120,000 yards. Bryson Carp

> Charles Cycles produces bicycles and tricycles. The setup cost when switching production from one to the other is $1,000. On average, retail customers order 150 tri-cycles per day (consider a 250-day year). The daily production rate for tricycles is 600 

> Continuing with problem 26, one of the textbooks in your bookstore costs $100 and sells for $200. In this case, however, you cannot salvage any value from copies that do not sell because a new edition is published every semester. Demand for this text ave

> Chapter 6 introduced the case, “A Comment on Management Attitude.” Review that case from a Moment of Truth perspective. What are the key takeaways for you when this approach is applied? What recommendations would you make to the owners of Dinsmore’s hote

> Management is concerned about the operation of its 123XYZ work center. From past studies, it knows that x-bar is 12.14, the LCL is 11.74, and the UCL is 12.54. The following data were collected for a 20-day period (where each observation is the mean for

> Using the control chart developed in the previous problem, plot the following data received from the store for a 10-day period. What insights for management do you have based on your analysis?

> A store is concerned with the number of late shipments that it generates each day. Consequently, it decides to track the number of late shipments for the last seven days. The data are summarized in the list below. Calculate the LCL and UCL for this data

> Peerless Windows is a major manufacturer and installer of windows into new homes. Currently, management has found that it has experienced a large number of customer claims (about 15% of all orders placed) against Peerless. These customers, often builders

> Suppose that you collect data for 15 samples of 30 units each and find that, on average, 2.5 percent of the products are defective. What are the UCL and LCL for this process?

> Using the data from the preceding problem, the instructor in charge of these five classes strongly feels that the arrival patterns are strongly influenced by the class (i.e., the arrival rates vary by class). Do the data support this position? (Hint: Loo

> Calculate the Cp and Cpk for a process characterized by the following data: Production specifications: 1.00 ± 0.08 cm Process standard deviation: 0.005 cm Process distribution centered at 0.95 cm

> In an article in Quality Engineering, a research article presented individual measurement data on sand compactibility, as follows: For these data, the author reported that the lower and upper specifications for sand compactibility are 38 and 46, respect

> Frank owns and operates a company that installs audiovisual equipment for corporate clients. He is currently working on a job that must be completed in 17 days. However, the project is running behind (see the remaining task information below). Equipment

> Marty and Marge are renovating their house. They hope for all work to be completed before the Thanksgiving holiday, which is 55 days away. Given the data below, what is the probability that the house will be completed before Thanksgiving? Assume that onl

> Consider the following software development plan. a. The client has asked for an estimated completion date. What would you tell her? b. The client would like to have the completed software in 37 weeks. What is the likelihood that the critical path will

> Big Turkey Burger Farms (BTBF) produces a large turkey burger that is world famous. This burger is known not only for its quality, but also its size and consistency. BTBF produces a turkey burger that on average is 12 ounces (with a standard deviation of

> Jude and Pat Strohsal have a crack in their water line and need to replace it. This will require digging up the water line, replacing it, filling the hole, leveling the soil, and reseeding the grass. The Strohsals’ plumber suggests that

> Given the data in Table 15S-3, what is the probability that the project will be completed in 32 days or less? What is the probability that the project will take longer than 32 days?

> Annie is planning a large surprise party for her sister Gwendolyn. She has developed the plan below, including estimates of the time (in hours) and cost necessary to perform each of the activities required at the currently planned pace and at the crashed

> Consider the supply chain planning system installation project depicted in Figure 15S-1. Suppose that the client has offered a $4,000 bonus to us if we can complete the project seven working days early. Based upon the crash cost information provided in T

> In problem 1 we assumed that it would take Bill 30 minutes to get from the golf course to his office. Assume now that this is the most likely time, but traffic and other factors could make the commute time as little as 25 minutes or as much as 45 minutes

> Bill needs to schedule a meeting for tomorrow afternoon, but he also has a tee time for golf at 10:00 a.m. Bill usually finishes a round of golf in 4.25 hours. If the course is empty and he doesn’t spend too much time looking for lost balls, he can finis

> Given the following project network: a. Identify the critical path and the earliest start and finish dates for each task. b. Calculate the slack for every project activity. c. Draw this network as a Gantt chart.

> Based on the precedence table below, draw a network diagram for this project. Identify the critical path, the earliest start and finish dates, and the slack for each task.

> Consider the following table of precedence relationships for a portion of a house-building project: a. Draw a network diagram for this project and identify the critical path. b. What assumptions may have been made in the development of the time estimate

> Consider the following information about a small project: a. Draw a network diagram. b. Identify the critical path, the earliest start and finish dates, and the slack for each task. c. Which of these activities should the project manager track most clos