Keto Grocery Store sells 400 gallons of milk each month. The average on-hand inventory is 50 gallons. What is the inventory turnover? What does it mean?
> A manufacturing process involving machined components consists of two operations done on two different machines. The status of the queue at the beginning of a particular week is as follows: The processing on machine 2 must follow processing on machine 1.
> At Lynwood Manufacturing, (see Solved Problem 15.9), suppose the dispatcher uses the LWR instead of FNO. Which job (job 2 or job 3) will be scheduled next on the drill press at time 30?
> Five customers brought in computers to be repaired to a small shop. Estimated repair times (in days) and dates promised are given below. Due dates were set based on available technicians; however, one technician had a medical emergency and will be unavai
> A workstation has one maintenance mechanic to re- pair failed machines. We can think of the mechanic as the processor (scarce resource) and the machines awaiting repair as the jobs. Let us assume that six machines are down, with estimated repair times gi
> Five patients arrived at the radiology department in a hospital and are waiting for X-rays. Use the SPT rule to create a schedule. Compute the start time and flow time for each patient.
> On Tuesday morning at 8 a.m., an IT analyst found four project “tickets” in her inbox that arrived over- night. The estimated times to complete the projects and the due dates requested are given below. If the projects
> These six jobs are to be scheduled on a single machine: a. Suppose the jobs are processed in FCFS numerical order. Compute the makespan, flow time for each job, and overall average flow time. b. In what order would the jobs be processed using the SPT rul
> Five jobs are to be processed on one machine. If the jobs are processed in the FCFS order 1-2-3-4-5, compute the start time and flow time for each job:
> The Hickory Medical Clinic recently conducted a patient satisfaction survey. Using a scale of 1–5, with 1 being “very dissatisfied” and 5 being “very satisfied,” th
> Zappos (www.zappos.com) is a Las Vegas–based online retailer that has been cited in Fortune’s list of the Best Companies to Work For and Fast Company’s list of the world’s most innov
> A supermarket has the following minimum personnel requirements during the week. Each employee is required to have two consecutive days off. How many regular employees are required, and what is a good schedule?
> A hospital emergency room needs the following numbers of nurses: Each nurse should have two consecutive days off. How many full-time nurses are required, and what is a good nurse schedule?
> Garden Manufacturing is a small, family-owned garden tool manufacturer located in Florence, South Carolina. The bills of materials for models A and B of a popular garden tool are shown in Exhibit 14.35 and other additional component information is provid
> The MPS for product A calls for 100 units to be completed in week 4 and 200 units in week 7 (the lead time is one week). Spare part demand for Item B is 10 units per week. The bill of materials for product A is shown in Exhibit 14.34, and the inventory r
> Consider the master production schedule, BOM shown in Exhibit 14.33, and inventory data shown below. Complete the MPS and MRP explosion and identify what actions, if any, you would take given this requirements plan. a. Develop a material requirement plan
> An orthopedic surgeon specializes in three types of surgery—hip, knee, and ankle replacements. The surgery mix is 40% hip replacements, 50% knee replacement, and 10% ankle replacement. Partial bills of materials for each type of surgery
> The BOM for product A is shown in Exhibit 14.32 and data from the inventory records are shown in the table. In the master production schedule for product A, the MPS quantity row (showing completion dates) calls for 250 units in week 8. The lead time for
> Irene’s Kitchen & Catering Service sells three kinds of cakes—single, double, and triple layers. The product mix is 30% single layer, 50% double layer, and 20% triple layer. The bills of material are as follows: a.
> Each bank teller workstation is forecast to process 400 transactions (the end item) on Friday. The bank is open from 9:00 a.m. to 7:00 p.m. on Friday with 90 minutes for lunch and breaks. Three teller windows are open on Friday. A work-study analysis rev
> Given the information below, complete the MRP record and explain what it tells the inventory analyst to do. Lot Size Rule: Fixed Q 5 100 units Safety Stock 5 0 units Lead Time 5 three weeks Current On-Hand Quantity 5 80 units
> Lilly Hillcrest started a custom drapery business in Naples, Florida in 2014. Her market segment is for owners of homes over one million dollars. Her prices are high, but the customer receives exceptional personal service and a service guarantee on all w
> Given the bill of material in Exhibit 14.31, if the gross requirements to build 250 units and an on-hand inventory for A of 40 units, what are the net requirements for all items? All component parts have zero on-hand inventory except item D with 200 unit
> Consider the same bill of material in Exhibit 14.30 and information in Problem 31 including the on-hand component quantities. Assume that two of component B are needed for each A and that the gross requirement for A is 220 units. Compute the net requirem
> Given the bill of material for the printer cartridge in problem 31 and Exhibit 14.30, and the following on-hand quantities, compute the net requirements for each item. The gross requirement for A is still 200 units.
> Given the bill of material for the printer cartridge (A) in Exhibit 14.30; a gross requirement to build 200 units of A; an on-hand inventory level for end- item A of 80 units; and assuming zero lead-times for all items A, B, C, D, and E, compute the net
> The Silver Star Bicycle Company will be manufacturing men’s and women’s models of its Easy-Pedal 10-speed bicycle during the next two months, and the company would like a production schedule indicating how many bicycles of each model should be produced i
> A lawn chair company, Leisure Furniture, manufactures two types of deck and lanai reclining chairs. Contribution to profits and overhead for Model A chairs are $35 and for Model B chairs $26. One independent process cuts and sews the weather proof fabric
> Metal Fabricators, Inc. manufactures gas grill tanks, Model # 1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1 – 2,800 tanks, Quarter 2—3,400, Quarter 3—3,600, and Quarter 4—2,900. Due to a hedging pr
> Jet skis and snowmobiles are assembled by Mobile Incorporated. Because both end-items use the same small engine, you can aggregate demand for the engine assembly. Develop an aggregate plan that uses a level production strategy each quarter and the inform
> Rapallo Corporation manufactures industrial vacuum cleaners with forecasted sales for the next five weeks as follows: Week 1 5 2,000 units, Week 2 5 2,500, Week 3 5 3,000, Week 4 5 3,000, and Week 5 5 3,500. Beginning inventory equals 13,000 units and th
> The forecast demand for fudge for the next four months is 120, 160, 20, and 70 pounds. a. What is the recommended production rate if a level strategy is adopted with no backorders or stock outs? What is the ending inventory for Month 4 under this plan? b
> 1. Explain whether the global diamond supply chain a push system or a pull system, and whether the global diamond supply chain is an efficient or responsive system for make-to-order and make-to-stock jewelry. Provide some examples to justify your reasoni
> Using the data in Problem 38, assume the operating manager reduces total average inventory on-hand by 21 percent by using better operations and supply chain methods. What is the revised cash-to-cash conversion cycle in weeks? What does this change in the
> As an operations management consultant, you have been asked to evaluate a furniture manufacturer’s cash-to-cash conversion cycle under the following assumptions: sales of $23.5 million, cost of goods sold of $20.8 million, 50 operating weeks a year, tota
> Consider the following performance data for Modular Computers, Inc (MCI). Sales 5 $34 million, cost of goods sold 5 $30 million, total average inventory 5 $428,000, accounts receivable 5 $2,100,000, accounts payable 5 $2,900,000, and operating 365 days p
> Given the information in Exhibit 13.11, what are the procurement, oversight, transportation, order cycle inventory, pipeline inventory costs, and total supply chain costs for using the supplier Ebert, Inc. Ebert manufactures small speakers for automobile
> Given the information in Exhibit 13.10, compute the procurement, oversight, transportation, order cycle inventory, pipeline inventory costs, and total supply chain costs for an air conditioner coil purchased from the supplier Entity, Inc. The order size
> What is the annual transportation cost if annual demand is 240,000 units and the cost to transship a unit is $0.80 per unit?
> What are order cycle costs if annual demand is 8,000 units, the order quantity is 1,000 units, and annual order cost is $97? What if the order size changes to 500 units or 8,000 units?
> What is the pipeline inventory value if average daily demand is 82 units, the lead time is 20 days, and annual inventory carrying costs is $12?
> What are total purchase and oversight costs if annual demand is 1,000,000 units, the purchase price is $2.42, and the management oversight costs to monitor and expedite the trans-Pacific shipment are $0.16 per unit?
> Claiken Incorporated is a supplier of axles for light trucks. They held an average axle inventory of $1.6 million last year, with a cost of goods sold of $21.0 million. What is the inventory turnover for axles? A customer wants them to increase its inven
> Whew, I’m glad the town hall meeting is over. The audience was hostile!” Tom Bourbon commented as he was escorted by a police officer to his car in the high school parking lot. The officer replied. “T
> Based on the following information, how many days of supply of inventory is the firm holding (assume 250 days of operation per year)? Interpret your answer if the industry average inventory days’ supply is 30 days.
> Andrew Manufacturing held an average inventory of $1.1 million (raw materials, work-in-process, finished goods) last year. Its sales were $8.0 million, and its cost of goods sold was $5.8 million. The firm operates 260 days a year. What is the inventory
> Bragg Johnson, materials manager at Johnson & Sons, has determined that a certain product experienced 3.8 turns last year, with an annual sales volume (at cost) of $975,000. What was the average inventory value for this product last year? What would be t
> A manufacturer of large industrial electric motors has a cost of goods sold of $111,690,000 and an average inventory value of $14,609,300. What is its inventory turnover? What does it mean?
> A big box electronics store sells 250 65-inch televisions during the year. The store maintains an average inventory of five units. What is its inventory turnover? What implications does this have for inventory management?
> Over the past year, Keto Grocery Store had a cost of goods sold of $24,500,000 and an average value of inventory of $1,100,500. What is its inventory turn- over? What does it mean?
> Tune Football Helmets Company is considering changing the current inventory-control system for football helmets. The information regarding the helmets is given below: a. The firm decides to use a fixed-period system to control the inventory and to review
> Wildcat Tools is a distributor of hardware and electronics equipment. Their socket wrench inventory needs better management. The information regarding the wrenches is given below. a. The company decides to use a continuous re- view system. What is the re
> Crew Soccer Shoes Company is considering a change of their current inventory-control system for soccer shoes. The information regarding the shoes is given below: a. The company decides to use a fixed-order quantity system. What would be the reorder point
> I’m going to Bookmaster to buy a book,” Luke Chris yelled as he walked out of his apartment. “I’ll be back in about ninety minutes,” he continued as his roommate la
> For the data given in Exhibit 12.26 for problem 50, illustrate the operation of a fixed-period-inventory system with a replenishment (M) level of 40, a re- view period of five days, a lead time of 3 days, and use Equation 12.1. Assume that orders are pla
> Allen’s Shoe Stores carries a basic black dress shoe for men that sells at an approximate constant rate of 500 pairs of shoes every three months. Allen’s current buying policy is to order 500 pairs each time an order i
> Apply the EOQ model to the quantity-discount situation shown in the data below: Assume that D 5 500 units per year, Co 5 $40, and the annual inventory-holding cost is 20 percent. What order quantity do you recommend?
> The B&S Novelty and Craft Shop in Bennington, Vermont, sells a variety of quality, handmade items to tourists. It will sell 300 hand-carved miniature replicas of a colonial soldier each year, but the demand pattern during the year is uncertain. The repli
> A product with an annual demand of 1,000 SKUs has Co 5 $30 and Ch 5 $8. The demand exhibits some variability such that the lead-time demand follows a normal distribution, with a mean of 25 and a standard deviation of five. a. What is the recommended orde
> Nation-Wide Bus Lines is proud of the six-week driver-training program it conducts for all new Nation-Wide drivers. The program costs Nation-Wide $22,000 for instructors, equipment, and so on, and is independent of the number of new drivers in the class
> The maternity ward of a hospital sends one baby blanket home with each newborn baby. The following information is available for the baby blankets: a. As the new maternity ward manager, you decide to improve the current ordering methods used for items whi
> The XYZ Company purchases a component used in the manufacture of automobile generators directly from the supplier. XYZ’s generator production, which is operated at a constant rate, will require 1,200 components per month throughout the year. Assume order
> The reorder point is defined as the demand during the lead time for the item. In cases of long lead times, the lead-time demand and thus the reorder point may exceed the economic order quantity, Qp. In such cases the inventory position will not equal the
> Exhibit 12.26 gives the daily demand of a certain oil filter at an auto supply store. Illustrate the operation of a fixed-order-quantity inventory system by graphing the inventory level versus time if Q 5 40, R 5 15, and the lead time is three days. The
> The Hudson Jewelers case study found in MindTap inte- grates material found in each chapter of this book. Case Questions for Discussion: 1. Hudson Jewelers’ current layout displays jewelry designs from the CAD system on a screen in the front of the store
> Given the weekly demand data in Exhibit 12.25 illustrate the operation of a fixed-order-quantity inventory system with a reorder point of 75, an order quantity of 100, and a beginning inventory of 125. Lead time is one week. All orders are placed at the
> Bishop Manufacturing is implementing an economic order quality (EOQ) inventory-control system and needs a good estimate of the cost to process a purchase order (PO). It takes five total labor hours to process a PO. The average number of stock keeping uni
> JAZ Medical Supplies is implementing a new economic order quality (EOQ) inventory-control system and needs a good estimate of the cost to process a purchase order (PO); i.e, the order cost Co. It takes four total labor hours to process a PO. The average
> After one year you are promoted to assistant man- ager and realize current inventory management practices are not systematic with too much stock of some SKUs and too little of others. Your retail store operates 52 weeks per year and one SKU you stock is
> TV Galore is a new specialty store that sells television sets, video games, and other television-related products. A new Japanese-manufactured game sells cost $400. Because such games have a short life cycle and can be considered somewhat perishable, inv
> Brenda, in problem 43, wants to consider set- ting up a fixed-period inventory system for the 28-ounce bottle of Super Algaecide (SA) SKU. At the beginning of the current week, D. J. Kole, the materials manager, checked the inventory level and found 55 u
> Brenda opened a pool and spa store in a lively shop- ping mall and finds business to be booming but she often stocks out of key items customers want. She decides to experiment with inventory control methods, such as using a continuous review (fixed-order
> Cynthia Baker, manager of a large medical supply house that operates 50 weeks per year and six days per week, has decided to implement a fixed-period inventory system for all class A items. One such item has the following characteristics: If Cynthia wish
> If the EOQ 5 80 units, annual demand 5 500 units, and there are 50 weeks in a year, what is the fixed- order interval for a fixed-period system?
> Alice opens an aquarium store in a lively shop- ping mall and finds business to be booming, but she often stocks out of key items customers want. She decides to experiment with inventory-control methods, such as using a fixed-order quantity (FQS) and/or
> Tom’s Auto Service (TAS) is a regional quick-service vehicle oil-change and lubricant-change service somewhat similar to Jiffy Lube and Tuffy Tire & Auto Service. TAS seeks to differentiate its 32 stores from competition by focusing
> Using the information for Rapallo Sneakers, Inc. in Problem 38, how much could be saved by ordering the EOQ?
> Rapallo Sneakers, Inc. sells a pair of LG sneakers for $40. Due to the recent fitness craze, these shoes are in high demand: 45 pairs of shoes are sold per week. The ordering cost is $40 per order, and the annual holding cost is 20 percent of the selling
> What are the z-values for service levels of 80, 85, 90, 95, and 99 percent, assuming demand is normally distributed?
> If the order quantity is 220 units, inventory-carrying costs are 24 percent year, and each unit costs $18, what is the average cycle inventory? How much does it cost to carry this cycle inventory year?
> What is the inventory position if the on-hand quantity is 462 units, scheduled receipts are 200 units, and 130 units are on backorder?
> For Rambler Manufacturing in problems 49 and 50, would you rather invest the same amount of money to double the throughput rate of workstation B or C? Explain your reasoning.
> For Rambler Manufacturing in problem 49, suppose that sales of clutch plates 1, 2, and 3, respectively are 180, 300, and 200 units for the week, and workstation C works two shifts for a total of 90 hours this week. What is the workload in hours for the w
> Rambler Manufacturing produces three clutch plates for small automobiles at its factory in Columbus, Ohio. The three processes shown in Exhibit 11.32 are composed of common and different work activities to manufacture the clutch plates. Exhibit 11.33 pro
> Jefferson Manufacturing in problem 47 has another cellular layout and process shown in Exhibit 11.31. a. Where is the bottleneck workstation? Cite one TOC principle from Exhibit 11.23 that explains your answer. b. Where should the manager position extra
> Jefferson Manufacturing machines parts for assembly in air compressors. The process is shown in Exhibit 11.30. a. Where is the bottleneck workstation? Cite one TOC principle from Exhibit 11.22 that explains your answer. b. What is the longest throughput
> I know what we can do next; everything has been so successful so far,” said Kay Ebelhar, marketing services division manager. “How about designing and offering a courtesy service guarantee? We will promise to greet customers, give them our undivided atte
> 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. a. What is the probability that the system is empty? b.
> A manufacturer of air conditioner compressors is concerned that too much money is tied up in its value chain. Average raw material inventory is $50 million and work-in-process (WIP) production inventory is $20 million. Sales are $20 million per week and
> The Wilcox Student Health Center has just implemented a new computer system and service process to “improve efficiency.” The process flowchart and analysis framework is also provided. As pharmacy manager, you are conce
> What is the average time a loaf of sliced bread stays in an urban sandwich shop if the restaurant uses 46 loaves per day and they maintain an average inventory of 150 loaves?
> An accounting firm is capable of processing 20 EZ tax forms per day, and the average number of forms on-hand in the office is 64 forms. What is the average processing time per EZ tax form?
> A medical equipment testing and calibration service is depicted in Exhibit 11.28. The customer usually brings the equipment to the service center. The service process requires service technicians to per- form three process steps #1 to #3. Each technician
> How can you improve throughput for the process in part (b) of problem 35? Assume that all 17 workers have the ability to perform the work at each stage but that no additional workers may be hired.
> For Solved Problem 11.3 on processing driver’s licenses at the Archer County Courthouse in this chapter, if 40 drivers are to be processed each hour, how many clerks and typists should be hired assuming a 90 percent target utilization rate?
> Due to county and state budget cuts Archer County Courthouse now has only two clerks and two typists and expects to process 40 drivers/hour (see Solved Problem 11.3). What is the current labor utilization of each labor type, and where is the bottleneck i
> A car rental company at a major airport has 70 percent of its fleet of 200 cars rented each day on average. Cars are rented for an average of four days. How many rentals are processed each day on average?
> The Hudson Jewelers case study found in MindTap inte- grates material found in each chapter of this book. Case Questions for Discussion: 1. What are the advantages and disadvantages from the service provider’s (jeweler’s) perspective of using “design you
> Marion Health Clinic sees patients on a walk-in basis only. On average, 10 patients per hour enter the clinic. All patients register at the registration window with a registration clerk (RC), which takes three minutes. After registration, but before bein
> The production process shown in Exhibit 11.27 consists of five stages. The numbers in parentheses are the times in minutes to complete one unit before it moves on to the next stage. The demand rate is 36 units per hour. a. How many workers are needed at
> After two years in your first job, you are promoted to call center manager for a major hotel chain. The expected service rate is 3.0 minutes per telephone call per customer service representative (CSR). With three telephone CSRs on-duty during the 6:30 t
