Environmental considerations, material losses, and waste disposal can be included in the EOQ model to improve inventory-management decisions. Assume that the annual demand for an industrial chemical is 1,200 lb, item cost is $5/lb, order cost is $40, inventory-holding cost rate (percent of item cost) is 18 percent. Use the EOQ Model Excel tem- plate in MindTap to answer the following: a. Find the EOQ and total cost assuming no waste disposal. b. Now assume that eight percent of the chemical is not used and disposed of, with a disposal cost of $0.75/lb. Find the EOQ and total cost when disposal costs are incorporated into the model. (Hint: Add to the holding cost the disposal cost times the percent of product that is disposed of. This calculation must be done manually.) c. What implications do these results have for sustainability practices?
> A bank has set a standard that mortgage applications be processed within eight days of filing. If, out of a sample of 1000 applications, 75 fail to meet this requirement, what is the epmo metric, and how does it compare with a six-sigma level? Use the Si
> The worldwide rate of baggage mishandling reported by SITA (Société Internationale de Télécommunications Aéronautiques) in 2017 was 5.73 per 1,000 passengers. If the average number of checked bags per passenger is assumed to be 1.3, use the Six Sigma Exc
> Nighthawk Airlines measured their numbers of lost bags in one month and found that they had lost 35 bags for 10,000 customers. If the average number of bags per customer is 1.2, use the Six Sigma Excel template to find at what sigma level is the airline
> Research what type(s) of reverse logistics program(s) your city, county, or state government supports and write a short paper describing how it works (and a simple flowchart if possible). What percentage of total waste ends up in a landfill? (maximum of
> An attorney’s office operates with a single copier. At the beginning of a particular day the following jobs are waiting for processing. All jobs must be distributed to clients or in court by 9:00 a.m., and it is now 7:30 a.m. Regular si
> In this chapter, we noted that the EDD rule minimizes the maximum job tardiness and maximum lateness, while the SPT rule minimizes the average flowtime. However, neither of these rules minimize the average lateness or average tardiness. Use the Excel Seq
> Eight jobs have arrived in the following order: Find and compare the performance measures for the following sequencing rules using the Excel Sequencing template: a. Process in the order they have arrived b. Shortest processing time c. Earliest due date
> An insurance claims work area has five claims waiting for processing as follows: Use the Excel Sequencing template to find the average flowtime, average and maximum tardiness, and average lateness for the following sequences: SPT sequence, EDD sequence,
> A manufacturing firm makes custom orthopedic parts for human knee, hip, and shoulder replacements. Because shipping the custom part(s) prior to the scheduled surgery date is essential, compare the SPT and EDD rules, and recommend the best sequencing rule
> A bank’s mortgage department must process the following six jobs to maximize client satisfaction. What sequencing rule should you use? For the rule you selected, find the best sequence using the Excel Sequencing template.
> A college textbook publisher sells a certain e-book for $40.00. For the current process, the publisher has fixed cost of $355,000 and a variable cost per book of $30.00. a. What is the break-even quantity for this book? b. If the variable cost increased
> Four blood samples have arrived in your laboratory with the following information: Use the Excel Sequencing template for the following: a. Sequence the jobs using the SPT rule. b. Sequence the jobs using the EDD rule. c. Compare average flow time, averag
> Tony’s Income Tax Service personnel can estimate the time required to complete customers’ tax returns by using the following time standards assuming all information is available: One morning, five customers are waiting
> Mike Reynolds has four assignments due in class tomorrow, and his class times are as follows. Each class lasts one hour, and Mike has no other classes. It is now midnight, and Mike estimates that the finance, OM, marketing, and psychology assignments wil
> Research and find a physical good that is biodegradable or carbon neutral. Be prepared to present your findings to the class in a two- to five-minute discussion.
> An earth moving machine had five jobs in the same area it must complete as soon as possible. Sequence the jobs using (a) FCFS order 1-2-3-4-5, and (b) the SPT rule. Use the Sequencing Excel template to compute performance measures for both sequences. W
> David Chris is running the season’s final basketball tournament for Youth Boosters. He is trying to schedule the referee crews for each game. The following table shows the number of times in the past that each crew has refereed a game f
> The minimum number of part-time employees needed at a quick service restaurant for each two-hour block is shown in the following table. Part time college students work four-hour shifts (e.g., 7–11 a.m., 9 a.m. to 1 p.m., and so on, star
> For the scenario described in section 15.2c, suppose the number of employees needed for each hour are as shown in the following table. Develop and solve the optimization model on a spreadsheet and use Solver to find the number of employees to assign to t
> Implement the linear optimization model developed for the Silver Star Bicycle Company in Problem 30 in in a spreadsheet and use Excel Solver (see Supplement D) to determine a production plan that minimizes production and inventory costs and satisfies the
> Implement the linear optimization model developed for Leisure Furniture in Problem 29 in a spreadsheet and use Excel Solver (see Supplement D) to determine the optimal production quantities of each type of chairs to produce to maximize revenue.
> Implement the linear optimization model developed for Metal Fabricators, Inc. in Problem 28 in a spreadsheet and use Excel Solver (see Supplement D) to find a minimum cost aggregate production plan.
> Given the information in Problem 34, what do you recommend if Worthington Machining can buy folded metal panels of identical size at a price of $27.25 per panel?s
> Kings Appliance Manufacturers makes toasters and wants to evaluate a level strategy against a chase strategy. The quarterly demand forecasts are: Q1—12,000, Q2—15,000, Q3—18,000, and Q4—33,000. The beginning finished goods inventory level is 3,000 units.
> Use the Excel template Aggregate Planning to try to find the best production strategy for the Wester- beck Company in Problem 44 to minimize the total cost. How much can you improve on the level and chase demand strategies?
> The kid almost died! He’s a diabetic! How did that patient get the wrong food tray?” said Bonnie Blaine, director of hospital operations, to Drew Owensboro, the director of dietary services. Bonnie Blaine, a woman in h
> The Westerbeck Company manufactures several models of automatic washers and dryers. The projected requirements over the next year for their washers are shown in the table below. Current inventory is 100 units. Current capacity is 960 units per month. The
> Chapman Pharmaceuticals, a large manufacturer of drugs, has this aggregate demand forecast (in thousands of liters) for a liquid cold medicine. The firm has a normal production rate of 90 thousand liters per month, and the initial inventory is 100 thousa
> Fans-and-More, Inc. assemble controllers for ceiling fans. Exhibit 13.16 provides information on a plastic case for fan infrared controllers produced by one of their suppliers, Byannan, Inc. The plastic case is made using injection molding machines. Byan
> Given the information in Exhibit 13.15 and a budget of $5,000,000, what is the most that Loyola Machining can pay for each manufactured unit? Assume one year is 250 working days and the order size is 6,500 units. Use the Total Supply Chain Cost Excel tem
> A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown in Exhibit 13.14. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in
> Given the information in Exhibit 13.13 for Rockland, Inc., use the Total Supply Chain Cost Excel template to compute the costs associated with the supply chain. The order quantity is 20,000 units, and the supply chain operates 250 days a year. What if th
> Given the information in Exhibit 13.12 for the Edwin Company, use the Total Supply Chain Cost Excel template to find the costs associated with the supply chain. The order size is Q 5 2,500 units and the supply chain operates 250 days a year.
> Daniel’s Auto Parts is a small wholesale distributor of automobile after-market items. For one particular part, an analysis of historical sales resulted in the distribution of daily demand shown below: When a new supply of the part is o
> Worthington Machining must decide whether to purchase Process A with specialized metal folding equipment needing two employees to operate it or Process B with general purpose folding equipment requiring five employees. Process A requires a fixed cost of
> Use the Inventory Simulation Excel template in MindTap for the Scott Audio Systems example in section 12-7 to determine the best order quantity- reorder point combination with the smallest average cost/day for all combinations of reorder points five, sev
> Research and find a good or service supply chain with a quantifiable carbon footprint. Write a short paper (maximum of two typed pages) on the topic, and if possible, how the carbon footprint was computed. Cite your sources.
> The J&B Card Shop sells calendars featuring a different colonial picture for each month. The once-a-year order for each year’s calendar ar- rives in September. From past experience the September-to-July demand for the calendars can be approximated by a n
> For Suzie’s Sweetshop scenario in problem 77, suppose that demand is normally distributed with a mean of 75 and a standard deviation of eight. How will her optimal order quantity change? Use the Single Period Inventory Excel template in MindTap to find y
> Suzie’s Sweetshop makes special boxes of Valentine’s Day chocolates. Each costs $15 in material and labor and sell for $30. After Valentine’s Day, Suzie reduces the price to $10.00 and sells any remaining boxes. Historically, she has sold between 50 and
> The Greyhound Company is considering changing its current inventory-control system for electronic picture frames. The information regarding one e-frame is given below: Use the FPS Safety Stock Excel template in MindTap to compute T and M for a fixed-peri
> Find the optimal order quantity for an annual demand of 10,000 units, a cost per unit of $3, an inventory-carrying charge rate of 20 percent, and an order cost of 32 percent. For orders between 100 and 1999 units, the supplier gives a two percent discoun
> A manufacturer procures a subassembly from a supplier. The annual demand is 120,000 units, cost per unit is $6, inventory-carrying charge rate is 10 percent, and the order cost is $200. For orders between 10,000 but less than 30,000, a three per- cent di
> Handyman Hardware orders power mowers from a major Midwestern manufacturer. The following quantity discount schedule applies to 21-inch, self- propelled, electric start power mowers: Annual demand is 1000 units, ordering cost is $20 per order, and annual
> Berta’s Shoe Company is considering a change of their current inventory-control system for soccer shoes. The information regarding the shoes is given below: The company decides to use a fixed-order-quantity system. Use the FQS Safety St
> High Tech, Inc. is a virtual store that stocks a variety of cell phones in their warehouse. Customer orders are placed, picked and packaged, and then shipped to the customer. A fixed-order quantity inventory-control system (FQS) helps monitor and control
> Assume you are the chief operating officer of the fast food chain with 5,500 stores in North America. Each store operates 360 days a year and has one heated dryer in the ladies and men’s restrooms. Each dryer operates 200 times per day per restroom. One
> Research and find a “return facilitator.” Describe what they do and how they make money (maxi- mum of two typed pages).
> How would you apply the TOC to a quick-service automobile oil change process? Explain.
> Super K Beverage Company distributes a soft drink that has a constant annual demand rate of 4,600 cases. A 12-pack case of the soft drink costs Super K $2.25. Ordering costs are $20 per order, and inventory-holding costs are charged at 25 percent of the
> Refer to the situation in problem 67. Suppose the manager of Mama Mia’s current order quantity is 400 boxes. How much can be saved by adopting an EOQ versus their current Q 5 400? Use the EOQ Model Excel template in MindTap to find your answer.
> Mama Mia’s Pizza purchases its pizza delivery boxes from a printing supplier. Mama Mia’s delivers on-average 225 pizzas each month (assume deterministic demand). Boxes cost 43 cents each, and each order costs $12.50 to process. Because of limited storage
> A&M Industrial Products purchases a variety of parts used in small industrial tools. Inventory has not been tightly controlled, and managers think that costs can be substantially reduced. The items in the worksheet C12 Excel P66 in MindTap comprise the i
> Use the ABC Excel template in MindTap to perform an ABC analysis for the data provided in the worksheet C12 Excel P65 Data in MindTap. Clearly explain why you classified items as A, B, or C.
> Use the ABC Excel template in MindTap to per- form an ABC analysis for the data provided in the worksheet C12 Excel P64 Data in MindTap. Clearly explain why you classified items as A, B, or C.
> The Welsh Corporation uses 13 key components in one of its manufacturing plants. The data are provided in the worksheet C12 Excel P63 Data in MindTap. Use the ABC Excel template in MindTap to perform an ABC analysis. Explain your decisions and logic.
> A medical clinic has two administrators handling all processing of insurance claims in a shared office. Administrator A handles only private insurance claims and processing. Administrator B handles only Medicare claims. On average, it takes about the sam
> An airport limousine service has one employee work the airport counter. A customer arrives on the average of once every three minutes, and it takes on average two minutes to process the transaction. Use the Single Server Queue Excel template to answer th
> Select three types of supply chain risks and explain in-depth how supply chain managers can help mitigate these risks. That is, develop an action plan to mitigate these risks (maximum of two typed pages).
> In Solved Problem 7.1 on Clear Water Pool Service (CWPS), CWPS replaced it fleet of pool service vans with hybrid/electric and gasoline-driven systems. This reduced the number of gallons of gasoline used to 6,000 gallons per year. How many metric tons of
> Kurelis Interior Design (see problem 67) provides home and office decorating assistance. On average, their high-end customers spend $36,000 on interior design fees plus $186,000 for furniture. In normal operation an average of 2.5 customers arrive per ho
> Trosper Tire Company has decided to hire a new mechanic to handle all tire changes for customers ordering new tires. Two mechanics are available for the job. One mechanic has limited experience and can be hired for $22 per hour. It is expected that this
> Keuka Park Savings and Loan currently has one drive-up teller window. Cars arrive at a mean rate of 10 per hour. The mean service rate is 12 cars per hour per window. To improve its customer service, Keuka Park Savings and Loan wants to investigate the e
> Kurelis Interior Design provides home and office decorating assistance. In normal operation an average of 2.5 customers arrive per hour. One design consultant is available to answer customer questions and make product recommendations. The consultant aver
> The district manager of a fast-food restaurant chain was receiving numerous complaints about customers waiting too long at the counter to place and receive their order. During the peak hour of store operation, the district manager’s audit team found that
> Big Al’s Car Wash has two wash bays. Each bay can wash 15 cars per hour. Cars arrive at the carwash at the rate of 15 cars per hour on the average, join the waiting line, and move to the next open bay when it becomes available. Use the Multiple Server Qu
> The City Beverage Drive-Thru is considering a two-server system. Cars arrive at the store at the mean rate of six per hour. The service rate for each server is 10 per hour. Use the Multiple Server Queue Excel template to answer the following questions: a
> Long lines of patients wait for CAT scanning service in a hospital. Patients arrive for scans at a rate of 1.8 per hour. The average processing time for CAT service is 27 minutes per patient. Your summer internship is in the hospital where you are assign
> Fore and Aft Marina is a new marina planned for a location on the Ohio River near Madison, Indiana. Assume that Fore and Aft decides to build one docking facility and expects a mean arrival rate of five boats per hour and a mean service rate of 10 boats
> Research the job of a global sourcing manager and describe the job duties, travel requirements, and skill set (maximum of two typed pages).
> Keuka Park Savings and Loan currently has one drive-up teller window. Cars arrive at a mean rate of 10 per hour. The mean service rate is 12 cars per hour. Use the Single Server Queue Excel template to answer the following questions: a. What is the proba
> A JetAir 304 airplane emits 22 kilograms of carbon dioxide per hour while flying. Today, the plane flew for 8.2 hours on six flights. This emission rate doesn’t include the time on the ground running its engines and other airport gate and airport emissio
> Marty’s Barber Shop has one barber. Customers arrive at a rate of 2.2 per hour, and haircuts are given at an average rate of five customers per hour. Use the Single Server Queue Excel template to answer the following questions: a. What is the probability
> Assume trucks arriving for loading/unloading at a truck dock from a single server waiting line. The mean arrival rate is four trucks per hour, and the mean service rate is five trucks per hour. Use the Single Server Queue Excel template to answer the fol
> Pete’s Market is a small local grocery store with one checkout counter. Shoppers arrive at the checkout lane at an average rate of 15 customers per hour and the average order takes three minutes to ring up and bag. If Pete does not want the average time
> A mail-order nursery specializes in European beech trees. New orders, which are processed by a single shipping clerk, have a mean arrival rate of six per day and a mean service rate of eight per day. Use the Single Server Queue Excel template to answer t
> Arrivals to a single server queue occur at an average rate of three per minute. Use the appropriate Excel function to develop the probability distribution for the number of arrivals for x 5 0 through 10.
> Trucks using a single server loading dock have a mean arrival rate of 12 per day. The loading/unloading rate is 18 per day. Use the Single Server Queue Excel template to answer the following questions: a. What is the probability that the truck dock will
> An accounts receivable manager processes 200 checks per day with an average processing time of 15 working days. Use the Excel template Little’s Law to find the average number of accounts receivable checks being processed in her office. What if through in
> An express checkout line at a grocery store takes an average of three minutes to ring-up a customer’s order. On average six customers are in the checkout line. Use the Excel template Little’s Law to find the average number of customers per hour that are
> Draw a supply chain flowchart similar to Exhibit 13.1 using the SCOR Model for a business you have worked in or have experience with. Describe how the supply chain works. If you have little or no work experience, then do the assignment for a restaurant o
> A manufacturer’s average WIP inventory for Part #2934 is 995 parts. The workstation produces parts at the rate of 225 parts per day. Use the Excel template Little’s Law to find the average time a part spends in this workstation.
> Linda Bryant recently started a small home-construction company. In an effort to foster high quality, rather than subcontracting individual work, she has formed teams of employees who are responsible for the entire job. She has contracted with a develope
> Carbon dioxide emissions associated with a one-night stay in a hotel room are calculated at 29.53 kg of CO2 per room day for an average hotel. The 200 rooms of your hotel are all occupied for 2 days during a college football game. a. How much CO2 did th
> The Hudson Jewelers case study available in MindTap integrates material found in each chapter of this book. Case Questions for Discussion: 1. What is the value of a loyal customer to Hudson Jewelers for a wealthy individual who visits Naples every Februa
> A manufacturer has committed to supply 16 units of a particular product in four months (i.e., 16 weeks) at a price of $30,000 each. The first unit took 1,000 hours to produce. Even though the second unit took only 750 hours to produce, the manufacturer i
> Yacht Superior manufactures boats for a yacht rental firm. They are in negotiation for the total price for 50 Model C314 yachts. Based on past experience, the learning rate for their employees and system is 75% and they estimate the first unit will requi
> Suppose a manufacturer of copiers has concluded that a 75 percent learning curve applies to the time a beginning service technician takes to install copy machines. Use the Learning Curve Excel template to answer the following questions: a. If the time re
> Operating at an 80 percent learning rate, the first unit took 72 hours to produce. Use the Learning Curve Excel template to determine how long the 32nd unit will take. What is the cumulative average time for the one-hundredth unit?
> A plant manufactures three products, A, B, and C. A drill press is required to perform one operation for each product. The plant operates one eight-hour shift 20 days per month. The operation times for each product follow. Determine the amount of equipme
> A hotel hosts banquet for conferences in a large ballroom with tables of eight. Servers must get the meals from the kitchen, bring them out to the tables, and then place the meals on the tables. It takes four minutes to get the meals and bring them ou
> When is simulation useful in analyzing inventory systems?
> Two experienced managers are resisting the introduction of a computerized exponential smoothing system, claiming that their judgmental forecasts are much better than any computer could do. Their past record of predictions is as follows: These data are a
> A chain of grocery stores had the following weekly demand (cases) for a particular brand of laundry soap: a. Use the Moving Average Excel template to develop three- and four-period moving average forecasts, and compute MSE for each. Which provides the be
> The president of a small manufacturing firm is concerned about the continual growth in manufacturing costs in the past several years. The data series of the cost per unit for the firm’s leading product over the past eight years are give
> The historical demand for the Panasonic Model 304 Pencil Sharpener is January, 80; February, 100; March, 60; April, 80; and May, 90 units. a. Using a four-month moving average and the Moving Average Excel template, what is the forecast for June? b. Devel
> Supreme Auto Parts produces components for motorcycle engines. It has plants in Amarillo, Texas, and Charlotte, North Carolina, and supply factories in Detroit and Atlanta. Use the following production and cost data for a major component are as follows.
> Using the factory energy cost data in Exhibit 9.11, find the best moving average and exponential smoothing models using the Moving Average and Exponential Smoothing Excel templates. Compare their forecasting ability with the regression model developed i
> The monthly sales of a new business software package at a local discount software store were as follows: a. Plot the data on a spreadsheet and provide insights about the time series. b. Use the Moving Average Excel template to find the best number of wee
> The number of component parts used in a production process each of the last 10 weeks is as follows. a. Use the Moving Average Excel template to develop moving average models with two, three, and four periods. Compare them using MSE to determine which is
