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Question: Given the following information, determine the


Given the following information, determine the sample size needed if the standard time estimate is to be within 5 percent of the true mean 97 percent of the time.

Work Element 
Standard Deviation (minutes) 
Mean Observed Time (minutes) 

1 
0.20 
1.10 

2 
0.10 
0.80 

3 
0.15 
0.90 

4 
0.10 
1.00 




> Using the given information, calculate the gross requirements for each of the components if the company plans to build 100 of its Q Models. Assume that there are no beginning inventories. Item Usage per Parent Load Time (weeks)  Q - 2  R 2 3 

> Using the given information, calculate the replenishment lead time for the Q Model assuming that you have no beginning inventories. Item Usage per Parent Load Time (weeks)  Q - 2  R 2 3  S 1 4  T 3 2  X 2 3  Y 1 2  V 1 3 

> Will’s Welded Widgets (WWW) makes its Q Model from components R, S, and T. Component R is made from two units of component X and one unit of component Y. Component T is made from one unit of component V and three units of component Z. Draw the product st

> Slick Pads is a company that manufactures laptop notebook computers. The company is considering adding its own line of computer printers as well. It has considered the implications from the marketing and financial perspectives and estimates fixed costs t

> Using the planned orders generated in Problem 17, complete inventory records for components AB501, AB511, and AB521. Use the lot size rule, lead time, and usage information given in Problem 12.

> Fill in the partially completed inventory record shown here. Item: AB500 Lot Size Rule: FOQ = 3 Lead Time: 2 weeks Parent: None Children: AB501, AB511, AB521   1 2 3 4 5  Gross Requirements:   150 250 150  Scheduled Receipts:     

> Using the planned orders generated in Problem 15, complete the inventory record for components AB501, AB511, and AB521. Use the lot size rule, lead time, and usage information given in Problem 12. Indicate any problems that occur.

> Using the information given, fill in the partially completed inventory record shown here. Item: AB500 Lot Size Rule: FOQ = 200 Lead Time: 2 weeks Parent: None Children: AB501, AB511, AB521   1 2 3 4 5  Gross Requirements:   150 250 150 

> Using the inventory records completed in Problem 12, calculate the average inventory level of AB501, AB511, and AB521. Problem 12: Component Lot Size Rule Time (weeks) Lead Usage Factor Beginning Inventory  AB501 L4L 2 2 1100  AB511 FOQ = 3

> The Office of Tourism (Problem 18) has decided to heavily promote local events this year and anticipates more tourists this season. Sue has changed the probability of selling different quantities of calendars as shown. Given the new probabilities, determ

> Using the planned orders generated in Problem 11, complete inventory records for components AB501, AB511, and AB521. The lot size rule, lead time, and usage information are shown here. Component Lot Size Rule Time (weeks) Lead Usage Factor Beginning

> Fill in the partially completed inventory record shown here. Item: AB500 Lot Size Rule: L4L Lead Time: 2 weeks Parent: None Children: AB501, AB511, AB521   1 2 3 4 5  Gross Requirements:   150 250 150  Scheduled Receipts:       P

> The Gamma Ray Company produces two products, the Gamma Blaster (GB) and the Gamma Disaster (GD). Each product is made from three components: A, B, and C. The Gamma Blaster is made from the following components: A (2), B (3), and C (4). The Gamma Disaster

> Calculate the size of the workforce needed for the company to meet average weekly demand.

> Although the BackPack Company has always used a level aggregate plan, Jill is interested in evaluating chase aggregate plans also. She has asked you to calculate how many hires and fires would be necessary to adjust capacity to meet demand exactly each p

> Tasty Ice Cream is a year-round take-out ice cream restaurant that is considering offering an additional product, hot chocolate. Considering the additional machine it would need plus cups and ingredients, it estimates fixed costs to be $200 per year and

> Last week a painter painted three houses in five days. This week she painted two houses in four days. In which week was the painter more productive?

> Concerned about the welfare of its workers, Draper has decided to try a strategy without any overtime. Instead of overtime, Draper has decided to supplement the permanent workforce of 12 employees with temporary workers. Any temporary worker must work th

> Develop a chase aggregate plan for Draper using a permanent workforce of 12 employees supplemented by overtime. All demand must be met each period. a) Show what would happen if this plan were implemented. b) Calculate the costs associated with this plan.

> Develop a chase aggregate plan using hires and fires to adjust the capacity for Draper. All demand must be met each period. a) Show what would happen if this plan were implemented. b) Calculate the costs associated with this plan. c) Evaluate the plan in

> The local Office of Tourism sells souvenir calendars. Sue, the head of the office, needs to order these calendars in advance of the main tourist season. Based on past seasons, Sue has determined the probability of selling different quantities of the cale

> Develop a level aggregate plan for the Draper Company if no back orders are permitted. a) Show what would happen if this plan were implemented. b) Calculate the costs associated with this plan. c) Evaluate the plan in terms of cost, customer service, ope

> Develop a level aggregate plan for the Draper Tax Company if back orders are permitted. a) Show what would happen if this plan were implemented. b) Calculate the costs associated with this plan. c) Evaluate the plan in terms of cost, customer service, op

> Jill wants you to consider a hybrid aggregate plan, using up to the maximum overtime per employee for any period where demand cannot be satisfied with the current regular-time production and the available inventory. Back orders can occur. a) Show what wo

> Jill Nicholas believes there must be a better aggregate plan. She has suggested a hybrid plan, using a permanent workforce of 195 employees and subcontracting as needed. Once again, Jill has requested that you provide the following information: a) Calcul

> Jill Nicholas is concerned about BackPack’s corporate image and has decided against using hires and fires. Instead, she has asked you to consider a chase aggregate plan using the current workforce supplemented by either overtime or undertime to change ca

> Now that you have calculated the number of workers needed each period in Problem 3, Jill wants to see how the plan would actually work. You need to: a) Show what would happen if this plan were implemented. b) Calculate the costs associated with this plan

> Jill has decided that the BackPack Company must have very good customer service. She has asked you to develop a level aggregate plan using inventories but not back orders. All demand must be met each period. You must: a) Calculate the aggregate productio

> Med-First is a medical facility that offers outpatient medical services. The facility is considering offering an additional service, mammography screening tests, on-site. The facility estimates the annual fixed cost of the equipment and skills necessary

> The BackPack Company produces a line of backpacks. The manager, Jill Nicholas, is interested in using a level aggregate plan. Inventories and back orders will be used to handle demand fluctuations. She has asked you to develop such a plan. Problem Data

> W. C. Sanders, owner of Fort Engines, a producer of heavy-duty snow blower engines, needs to develop an aggregate plan for the coming year. The company currently uses 20 individuals working 160 regular-time hours each month. Each worker is capable of pro

> In an effort to reduce its inventory, Rapid Grower is offering Greens, a local nursery (Problems 12 and 13), two additional price breaks to consider. If the nursery orders a three-month supply, the cost per bag is $16. If Greens orders a six-month supply

> Lissette Jones, the materials manager for an upscale retailer, wants to measure her customer service level. She has collected the following representative data. Order Number Number of Line Items Dollar Value of Order  1 4 1000  2 8 1440  3 

> Greener Pastures Incorporated (GPI) produces a high-quality organic lawn food and weed eliminator called Super Green (SG). Super Green is sold in 50-pound bags. Monthly demand for Super Green is 75,000 pounds. Greener Pastures has capacity to produce 24,

> Using the data provided in Problem 23, determine what will happen if HP uses the economic production quantity model to establish the quantity produced each cycle. a) Calculate the economic production quantity (EPQ). b) Calculate the maximum inventory lev

> Healthy Plants Ltd. (HP) produces its premium plant food in 50-pound bags. Demand for the product is 100,000 pounds per week. HP operates 50 weeks per year and can produce 250,000 pounds per week. The setup cost is $20 and the annual holding cost rate is

> Using the information in Problem 16, calculate the following: a) The economic order quantity b) The total annual costs using the EOQ ordering policy c) The penalty costs Sam is incurring by using his current policy

> Sam’s Auto Shop services and repairs a particular brand of foreign automobile. Sam uses oil filters throughout the year. The shop operates 52 weeks per year, and weekly demand is 150 filters Sam estimates that it costs $20 to place an order and his annua

> Custom Computers, Inc. from Problem 9 is considering a new ordering policy. The new order quantity would be 650 heat sinks. Recalculate Problem 9, parts (a) through (e), and compare results.

> Oakwood Outpatient Clinic is analyzing its operation in an effort to improve performance. The clinic estimates that a patient spends on average 3.5 hours at the facility. The amount of time the patient is in contact with staff (i.e., physicians, nurses,

> Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1300 units. Annual demand is 5200 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cos

> My Kitchen Delights (MKD) is considering two new suppliers for the jars used in the production process. The quality at both suppliers is equal. Assume that the annual holding cost is 30 percent of the unit price. Monthly demand averages 20,000 jars. Orde

> Students in an operations management class have been assigned six similar computer homework problems. Alexis needed 40 minutes to complete the first problem. Assuming an 80 percent learning curve, how much total time will Alexis need to complete the assi

> Based on the standard time calculated in Problem 8, how many units should an employee operating at 100 percent of standard complete during an eight-hour workday?

> The Arkade Company is considering switching to a 15 percent allowance based on time worked. Calculate the new standard time for each work element and for the total job.

> Based on the standard time calculated in Problem 6, how many units should an employee operating at 100 percent of standard complete during an eight-hour workday?

> In a further attempt to liquidate its inventory, Rapid Grower has offered Greens, the local nursery, an option to buy the entire year’s supply at one time. The cost per bag would be $12. Should Greens take advantage of this offer?

> The Arkade Company has decided to use a 15 percent allowance factor based on job time. Calculate the standard time for each work element and for the total job.

> Using the information in Problem 1, determine the sample size needed if the standard time estimate is to be within 5 percent of the true mean 99 percent of the time. Problem 1: Work Element Standard Deviation (minutes) Mean Observed Time (minutes)  

> You need to develop a labor time estimate for a customer order of 20 network installations. It is estimated that the first installation will require 60 hours of labor, and a learning curve of 90 percent is expected. a) How many labor-hours are required f

> Draw a process flow diagram of your last doctor’s office visit. Identify bottlenecks. Did any activities occur in parallel?

> Your 20 observations of Dr. Knowitall reveal the following information. Assume that the estimate is to be within 5 percent of the true proportion 95 percent of the time. Activity Observed Number of Times Observed  With patient 6  Reviewing test re

> As a class project you have been asked to project the proportion of time a professor spends on various activities. You have decided to use the work-sampling method. Your initial observations are shown. Activity Observed Number of Times Observed  Grad

> You are given the following information. Element (in minutes)  Observations 1 2 3 4 5  Cycle 1 0.58 1.50 0.79 0.30   Cycle 2 0.61  0.75 0.35   Cycle 3 0.59  0.73 0.33   Cycle 4 0.54  0.72 0.35   Cycle 5 0.60 1.40

> You have 25 observations of university policeman Sgt. Jack B. Nimble during his normal workday. The results are shown here. Assume that the estimated proportion is to be within 5 percent of the true proportion 95 percent of the time. Activity Observed 

> The following information is provided to you for each of five elements performed in building the Aviator model, a basic universal remote control. Work Element Mean Observed Time (minutes) Performance Rating Factor Frequency  1 0.96 0.96 1.0  2

> A local nursery, Greens, uses 1560 bags of plant food annually. Greens works 52 weeks per year. It costs $10 to place an order for plant food. The annual holding cost rate is $5 per bag. Lead time is one week. a) Calculate the economic order quantity. b)

> Frank’s Fabricators has collected the following information to develop a standard time for producing their high-volume Navigator III, a universal remote control. All of the times are in minutes. Element  Observations 1 2 3 4 5 6  Cycle 1 1

> Jake’s Jumbo Jacks has collected the following information to develop a standard time for building jumbo jacks. Element (in minutes)  Observations 1 2 3 4 5  Cycle 1 2.18 1.25 1.70 2.74 1.57  Cycle 2 2.22 1.23 1.75 2.66 1.55  Cy

> Compare the two standards calculated in Problems 6 and 8. What other factors should be considered in selecting the method for determining the allowance factor?

> Calculate the normal time for each of the work elements. Work Element Mean Observed Time (minutes) Performance Rating Factor  1 1.20 0.95  2 1.00 0.85  3 0.80 1.10  4 0.90 1.10  

> Using the information in Problem 3, calculate the sample size needed if the standard time estimate is to be within 5 percent of the true mean 99 percent of the time. Calculate the percentage increase in sample size for the higher precision. Problem 3:

> George Fine, owner of Fine Manufacturing, is considering the introduction of a new product line. George has considered factors such as costs of raw materials, new equipment, and requirements of a new production process. He estimates that the variable cos

> Using the following information, determine the sample size needed if the standard time estimate is to be within 5 percent of the true mean 95 percent of the time. Work Element Standard Deviation (minutes) Mean Observed Time (minutes)  1 0.60 2.40

> Your company has received an order for 20 units of a product. The labor cost to produce the item is $9.50 per hour. The setup cost for the item is $60 and material costs are $25 per unit. The item is sold for $92. The learning rate is 80 percent. Overhea

> A manufacturing company is designing an assembly line to produce its main product. The line should be able to produce 60 units per hour. The following data in Table 10-16 give the necessary information. Table 10-16: Task Information for Problem 12  Ta

> T-Shirts Unlimited is a retailer that sells every kind of T-shirt imaginable. The different types of T-shirts are stored in departments that all take up the same amount of space. Given the available warehouse space (Figure 10-15) and a fromâ€&

> Mop and Broom Manufacturing estimates that it takes 4.5 hours for each broom to be produced, from raw materials to final product. An evaluation of the process reveals that the amount of time spent working on the product is 3 hours. Determine process velo

> Table 10-23 shows the tasks required to assemble an aluminum storm door and the length of time needed to complete each task. Table 10-23: Task Information for Problem 19  Task Immediate Predecessor Task Time (sec)  A None 32  B A 43  C A

> A dress-making operation is being designed as an assembly line. Table 10-22 shows the tasks that need to be performed, their task times, and preceding tasks. If the goal is to produce 30 dresses per hour, answer the questions that follow the table. Tabl

> Use the longest task time rule to balance the assembly line described in Table 10-21; the line can produce 30 units per hour. Table 10-2: Assembly-Line Task Information  Work Element Immediate Predecessor Task Time (sec)  A None 25  B A 30 

> Kiko Teddy Bear is a manufacturer of stuffed teddy bears. Kiko would like to be able to produce 40 teddy bears per hour on its assembly line. Use the information provided in Table 10-20 to answer the questions that follow. Table 10-20: Task Information

> The ABC Corporation is designing its new assembly line. The line will produce 50 units per hour. The tasks, their times, and their immediate predecessors are shown in Table 10-19. Table 10-17: Task Information for Problem 14  Task Immediate Predecess

> An assembly line must be designed to produce 40 containers per hour. The following data in Table 10-18 give the necessary information. Table 10-17: Task Information for Problem 14  Task Immediate Predecessor Task Time (sec)  A None 60  B A 1

> The following data were collected on the study of the relationship between a company’s retail sales and advertising dollars: Retails Sales ($)………………Advertising ($) 29,789………………………………………16,893 35,434………………………………………18,398 38,732……………………………………….20,376 43,5

> Mop and Broom Manufacturing has tracked the number of units sold of their most popular mop over the past 24 months. This is shown. Month Sales Month Sales Month Sales  1 239 9 310 17 369  2 248 10 335 18 378  3 256 11 348 19 36

> Pumpkin Pies Galore is trying to forecast sales of pies for the month of December. Demand for pies in September, October, and November has been 230, 304, and 415, respectively. Edith, the company’s owner, uses a three-period weighted moving average to fo

> The number of patients coming to the Healthy Start maternity clinic has been increasing steadily over the past eight months. Given the following data, use a linear trend line to forecast attendance for months 9 and 10. Month…….Clinic Attendance (in thou

> A technology problem has rendered some of the inventory at FFF (Problem 6) obsolete. FFF estimates that the risk cost of its inventory is now 10 percent. a) Calculate the new annual holding cost rate. b) Calculate the new total annual holding costs for F

> Rapid Grower, the supplier of plant food for Greens in Problem 12, has offered the following quantity discounts. If the nursery places orders of 50 bags or less, the cost per bag is $20. For orders greater than 50 bags but less than 100 bags, the cost pe

> The number of students enrolled at Spring Valley Elementary has been steadily increasing over the past five years. The school board would like to forecast enrollment for years 6 and 7 in order to better plan capacity. Use a linear trend line to forecast

> Lauren’s Beauty Boutique has experienced the following weekly sales: Week Sales  1 432  2 396  3 415  4 458  5 460   Forecast sales for week 6 using the naïve method, a simple average, and a three-period moving average.

> Sales for a product for the past three months have been 200, 350, and 287. Use a three-month moving average to calculate a forecast for the fourth month. If the actual demand for month 4 turns out to be 300, calculate the forecast for month 5.

> A producer of picture frames uses a tracking signal with limits of ±4 to decide whether a forecast should be reviewed. Given historical information for the past four weeks, compute the tracking signal and decide whether the forecast should be reviewed. T

> Two different forecasting models were used to forecast sales of a popular soda on a college campus. Actual demand and the two sets of forecasts are shown. Use MAD to explain which method provided a better forecast. Period Actual Demand Forecast 1 For

> A company has used three different methods to forecast sales for the past five months. Use MAD and MSE to evaluate the performance of the three methods. a) Which forecasting method performed best? Do MAD and MSE give the same results? Period Actual Me

> Handy-Maid Cleaning Service operates five crews with three workers per crew. Different crews clean a different number of homes per week and spend a differing amount of hours. All the homes cleaned are about the same size. The manager of Handy-Maid is try

> Given the following data, use exponential smoothing with α = 0.2 and α = 0.5 to generate forecasts for periods 2 through 6. Use MAD and MSE to decide which of the two models produced a better forecast. Period Actual Forecast  1 15 17  2 18   

> A company uses exponential smoothing with trend to forecast monthly sales of its product, which show a trend pattern. At the end of week 5, the company wants to forecast sales for week 6. The trend through week 4 has been 20 additional cases sold per wee

> Burger Lover Restaurant forecasts weekly sales of cheeseburgers. Based on historical observations over the past five weeks, make a forecast for the next period using the following methods: simple average, three-period moving average, and exponential smoo

> The Federal Reserve Board has just increased the interest rate. FFF in Problem 6 now has to pay 12 percent for its capital. Calculate the impact on total annual holding costs for FFF.

> Small Wonder, an amusement park, experiences seasonal attendance. It has collected two years of quarterly attendance data and made a forecast of annual attendance for the coming year. Compute the seasonal indexes for the four quarters and generate quarte

> Happy Lodge Ski Resorts tries to forecast monthly attendance. The management has noticed a direct relationship between the average monthly temperature and attendance. a) Given five months of average monthly temperatures and corresponding monthly attendan

> The president of a company was interested in determining whether there is a correlation between sales made by different sales teams and hours spent on employee training. These figures are shown. Sales (in thousands)…....Training Hours 25………………………........

> Rosa’s Italian restaurant wants to develop forecasts of daily demand for the next week. The restaurant is closed on Mondays and experiences a seasonal pattern for the other six days of the week. Mario, the manager, has collected information on the number

> Demand at Nature Trails Ski Resort has a seasonal pattern. Demand is highest during the winter, as this is the peak ski season. However, there is some ski demand in the spring and even fall months. The summer months can also be busy as visitors often com

> A manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. At the end of December, the company wishes to forecast sales for January. The estimate of trend through November has been 200 additi

> The following historical data have been collected representing sales of a product. Compare forecasts using a three-period moving average, exponential smoothing with α = 0.2, and linear regression. Using MAD and MSE, which forecasting model is best? Are y

> Med-Tech labs is a facility that provides medical tests and evaluations for patients, ranging from analyzing blood samples to performing magnetic resonance imaging (MRI). Average cost to patients is $60 per patient. Labor costs average $15 per patient, m

> The manager of the health clinic in Problem 5 would also like to use exponential smoothing to forecast demand for emergency services in the facility. As in Problem 5, she is not sure whether to use a high or low value of α. To make her decision, she woul

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