Question: In the following operations, isolate a system

> Suppose the demand for French bread rises. Explain what happens to producer surplus in the market for French bread. Explain what happens to producer surplus in the market for flour. Illustrate your answers with diagrams.

> John has been working as a tutor for $300 a semester. When the university raises the price it pays tutors to $400, Jasmine enters the market and begins tutoring as well. How much does producer surplus rise as a result of this price increase? a. by less t

> What mechanisms allocate resources when the price of a good is not allowed to bring supply and demand into equilibrium?

> A recent study found that the demand-and-supply schedules for Frisbees are as follows: a. What are the equilibrium price and quantity of Frisbees? b. Frisbee manufacturers persuade the government that Frisbee production improves scientistsâ€

> A $1 per unit tax levied on consumers of a good is equivalent to a. a $1 per unit tax levied on producers of the good. b. a $1 per unit subsidy paid to producers of the good. c. a price floor that raises the good’s price by $1 per unit. d. a price ceil

> How might a drought that destroys half of all farm crops be good for farmers? If such a drought is good for farmers, why don’t farmers destroy their own crops in the absence of a drought?

> If the elasticity is greater than 1, is demand elastic or inelastic? If the elasticity equals zero, is demand perfectly elastic or perfectly inelastic?

> Suppose the price elasticity of demand for heating oil is 0.2 in the short run and 0.7 in the long run. a. If the price of heating oil rises from $1.80 to $2.20 per gallon, what happens to the quantity of heating oil demanded in the short run? In the lon

> A linear, downward-sloping demand curve is a. inelastic b. unit elastic. c. elastic. d. inelastic at some points, and elastic at others.

> Make up an example of a monthly supply schedule for pizza, and graph the implied supply curve. Give an example of something that would shift this supply curve, and briefly explain your reasoning. Would a change in the price of pizza shift this supply cur

> A change in which of the following will NOT shift the demand curve for hamburgers? a. the price of hot dogs b. the price of hamburgers c. the price of hamburger buns d. the income of hamburger consumers

> Does a change in consumers’ tastes lead to a movement along the demand curve or to a shift in the demand curve? Does a change in price lead to a movement along the demand curve or to a shift in the demand curve? Explain your answers.

> Consider the market for minivans. For each of the events listed here, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases or decreases. Then draw a diagram to show the effect on the price

> Movie tickets and film streaming services are substitutes. If the price of film streaming increases, what happens in the market for movie tickets? a. The supply curve shifts to the left. b. The supply curve shifts to the right. c. The demand curve shift

> Suppose that a skilled brain surgeon also happens to be the world’s fastest typist. Should she do her own typing or hire a secretary? Explain.

> Give an example in which one person has an absolute advantage in doing something but another person has a comparative advantage.

> Pat and Kris are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Pat takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Kris

> When two individuals produce efficiently and then make a mutually beneficial trade based on comparative advantage, a. they both obtain consumption outside their production possibilities frontier. b. they both obtain consumption inside their production po

> Why might economic advisers to the president disagree about a question of policy?

> Should an economic model describe reality exactly?

> The first principle of economics discussed in Chapter 1 is that people face trade-offs. Use a production possibilities frontier to illustrate society’s trade-off between two “goods”—a clean environment and the quantity of industrial output. What do you s

> Draw an example of a production possibilities frontier for Robinson Crusoe, a shipwrecked sailor who spends his time gathering coconuts and catching fish. Does this frontier limit Crusoe’s consumption of coconuts and fish if he lives by himself? Would he

> Describe some of the trade-offs faced by each of the following: a. a family deciding whether to buy a new car b. a member of Congress deciding how much to spend on national parks c. a company president deciding whether to open a new factory d. a professo

> Calculate the daily production quantities and sequences from the following monthly requirements for product models A, B, and C. Assume the month has 20 production days. a. 5000 A, 2500 B, and 3000 C b. 2000 A, 3000 B, and 6000 C

> Visit a repetitive manufacturing facility in your area. What are the major causes of inventory? Be sure to ask about lot sizes and setup times. Would a lean production system work in this facility? Why or why not?

> What does it mean to say that a supply chain can be too lean? Give examples why this may be a problem.

> How would you, after the fact, audit a project to determine whether it was successful?

> In a company that processes insurance claims, the average flow rate is 10 claims per hour and the average throughput time is six hours. a. How many claims are in the system on average? b. If the demand for claims to be processed is seven per hour and the

> Six jobs must be processed through machine A and then machine B as shown be low. The processing time for each job is also shown a. Develop a Gantt chart to determine the total time required to process all six jobs. Use the following sequence of jobs: 1

> Specify the kinds of objectives that might be appropriate for each of the situations listed in question 1.

> The Ace Steel Mill estimates the demand for steel in millions of tons per year as follows: Millions of Tons Probability 10 ……………………………………0.10 12 ……………………………………0.25 14 ……………………………………0.30 16 …………………………………..0.20 18 ……………………………………0.15 a. If capacity is set

> What problems are created by simultaneously considering the capacity questions of how much, how large, where, when, and what type?

> The number of daily calls for the repair of Speedy copy machines has been recorded as follows: October………………………. Calls 1……………………………..….. 92 2………………………………… 127 3………………………………… 106 4……………………………..…..165 5 ………………

> What is the distinction between forecasting and planning?

> We have taken 12 samples of 400 book pages found the following proportions of defective pages: .01, .02, .02, .00, .01, .03, .02, .01, .00, .04, .03, and .02. A page is considered defective when one or more errors are detected. a. Calculate the control l

> Suppose you make electronic calculators that contain a chip purchased from a local vendor. How would you decide how much inspection to perform on the chips supplied to you?

> What are the differences between quality of design and quality of conformance?

> As we discussed at the beginning of the chapter, Starbucks has a large, global supply chain that must efficiently supply over 17,000 stores. Although the stores might appear to be very similar, they are actually very different. Depending on the location

> What are the main ways in which processes are managed to accommodate environmental regulations?

> Suppose a lean work center is being operated with a container size of 25 units and a demand rate of 100 units per hour. Also assume it takes 180 minutes for a container to circulate. a. How many containers are required to operate this system? b. What is

> Define repetitive manufacturing and compare it with job shop or batch manufacturing

> Suppose a bank clears checks drawn on customers’ checking accounts by using the following process: a. If the capacity for receiving checks is 1000 checks per hour, for sorting checks is 800 checks per hour, and for shipping checks is 12

> Explain how the process view of an organization is likely to uncover the need for greater cross-functional cooperation.

> Locate each of the following services on the service delivery system matrix: a. Vending machine b. Housecleaning service c. Appliance repair

> Why are assembly-line processes usually so much more efficient but less flexible than batch processes? Give three reasons.

> In what circumstances might a market-pull approach or a technology-push approach to new-product design be the best approach?

> Describe a possible operations mission that fits the following business situations: a. Ambulance service. b. Production of hybrid automobile batteries. c. Production of electronics products that have a short product life cycle

> Who are the various stakeholders that need to be considered in resolving these issues?

> Calculate the Net Present Value of the stormwater project, given the financial information in the case.

> The flow of materials through eight departments is shown as follows. Even though the table shows flows into and out of the different departments, assume that the direction of flow is not important. In addition, assume that the cost of moving material dep

> What should be done based on the calculations from question 1?

> How should the various functional areas in the organization be included in the Lean Six Sigma initiative, and what role should senior and middle management play in this change initiative?

> What were the challenges facing Mayo and the role of leadership?

> What are the pros and cons of the options presented in the case?

> Draw a current state value stream map indicating the customer, supplier, information flow and relevant metrics •What is the takt time? •What is the total lead time (processing + waiting)? •What is the total value added and non-value added time? •What is

> Using the service blueprint, make a list of all the key service failure points and the associated customer expectations. For example a service failure point with expectations is: check-in should be fast and hassle free. You should find 10 to 15 service f

> What action should Rhodes take to solve his problems?

> Prepare a master production schedule for the next 6 weeks using the EOQ's calculated in Question 1 and a work force of 10 employees. What inventory turnover ratio is achieved by this master schedule? How does this turnover compare with past levels and wi

> Evaluate the importance of inventory and inventory management of the Southern Toro distributorship for both irrigation products and spare parts. Should the inventory be cut back?

> Explain the relationship between quality and productivity under the lean philosophy.

> Describe how the system you have designed will help the company meet customer-service and cost objectives.

> 1. Using Exhibit 1.3 as a model, describe the source-make-deliver-return relationships in the following systems: a. An airline b. An automobile manufacturer c. A hospital d. An insurance company Making Sourcing Planning Delivering Returning

> What are the internal strengths and weaknesses of BYD along with external, opportunities and threats (SWOT Analysis)?

> What specific principles, practices, or techniques might be useful to effectively integrate suppliers?

> Would your recommendation change if the foreign exchange rate increased or decreased by 15%?

> Develop an S&OP plan by month for fiscal 2015. Consider the use of several different production strategies. Which strategy do you recommend? Hint: Use of Excel will greatly save time in making these plans.

> What forecasting methods should the company consider? Please justify.

> The Superior Manufacturing Company wants to make two shipments from Dallas, Texas to Los Angeles, California. The first shipment weighs 10,000 pounds and the second shipment weighs 15,000 pounds. The carrier charges $10 per hundredweight (cwt) if the goo

> Describe the historical development of the logistics field.

> A manufacturing company has the following financial information (in millions of $): Sales ……………………………………………$823 Cost of goods sold Direct labor……….…………………………. 85 Purchased materials ………………. 310 Overhead …………………………………….

> What are some of the barriers to a successful quality implementation effort?

> What do you think are the effects of offshoring on the U.S. economy?

> What is the difference between supply chain management and demand management?

> Why might it be difficult to develop a manufacturing cell?

> The following information is given for a particular part. Using a lead time of two weeks, complete the table. Use L4L with On hand = 80 and SS=0. Week 1 2 3 4 5 100 400 300 Gross requirement Scheduled receipts Projected ending 50 inventory 80 Net req

> In what ways do independent-demand inventories differ from dependent-demand inventories?

> The Always Fresh Grocery Store carries a particular brand of tea that has the following characteristics: Sales = 8 cases per week Ordering cost = $10 per order Carrying charge = 20 percent per year Item cost = $80 per case a. How many cases should be ord

> Identify the different types of inventories (raw materials, work in process, and finished goods) carried in the following organizations: gas station, hamburger stand, clothing store, and machine shop. What functions (purposes) do these inventories perfor

> A public accounting firm requires the following activities for an audit: a. Draw a network for this project. b. Make a forward pass and a backward pass to determine ES, LS, EF, and LF. c. What are the critical path and the project completion time? d. I

> How, precisely, does project scheduling differ from the scheduling of ongoing operations?

> Students must complete two activities to register for class: registration and payment of fees. Because of individual differences, the processing time (in minutes) for each of these two activities for five students varies, as shown below: a. Construct a

> Why should operations be concerned with environmental issues?

> What types of scheduling decisions are management likely to encounter in the following operations? Describe the scheduling decisions in terms of the types of resources to be scheduled and the associated customers or jobs scheduled. a. Hospital b. Univers

> Suppose we are considering the question of how much capacity to build in the face of uncertain demand. Assume that the cost is $20 per unit of lost sales due to insufficient capacity. Also assume that there is a cost of $7 for each unit of capacity built

> Approximately how far ahead would one need to plan for the following types of facilities? a. Restaurant b. Hospital c. Oil refinery d. Toy factory e. Electric power plant f. Public school g. Private school

> What are the implications for cost accounting of lean production?

> Ace Hardware sells spare parts for lawn mowers. The following data were collected for one week in May when replacement lawn-mower blades were in high demand Day……………………………………… Demand 1 ……………………………………………..10 2 ……………………………………………..12 3 ……………………………………………..1

> Daily demand for marigold flowers at a large garden store is shown below. Compute: a. A three-period moving average for each period. b. A five-period moving average for each period. Period…………………………………Demand 1 …………………………………………….85 2…………………………………………… 92 3

> Is there a difference between forecasting demand and forecasting sales? Can demand be forecast from historical sales data?

> Golden Gopher Airline issues thousands of aircraft boarding passes to passengers each day. In some cases a boarding pass is spoiled for various reasons and discarded by the airline agent before the final boarding pass is issued to a customer. To control

> Why did statistical quality control ideas catch on in the 1940s?

> How can quality be measured for the following? a. Phone service b. Automobile repair c. Ballpoint pens

> Compare the Baldrige-based approach to the use of ISO 9000.

> Give an example of a global business with which you are familiar. How has globalization affected its operations and its supply chain?

> In what ways is purchasing becoming more professional?

> Give some examples of sustainability goals and plans.

> Valley View Hospital faces somewhat seasonal demand. Patients defer elective surgery in the summer and in the holiday season at the end of the year. As a result, the forecast of patient days of demand is as follows (a patient day is one patient staying f

> The Easyfit tire store had demand for tires shown below. Assume F1 = 198. a. Develop a spreadsheet using the first seven days of demand to determine the best exponential smoothing model for values of α = .2, α = .3, and &Icirc

> A certain process is under statistical control and has a mean value of µ = 130 and a standard deviation of σ = 8. The specifications for this process are USL = 150, LSL = 100. a. Calculate Cp and Cpk. b. Which of these indices is a better measure of proc

> If an organization was using neither lean nor Six Sigma, how would you decide which approach to use first?