Question: Revenue management was once the exclusive domain

> Green Forever’s challenge (see Problem S5.12) is to determine which design alternative is the better environmental choice if it uses a different battery for the Premium Mate. The alternate battery revenue and costs are as follows: a) Wh

> Green Forever (see Problem S5.12) has decided to add an automatic string feeder system with cost and revenue estimates as shown below to the GF Deluxe model. a) What is the new revenue retrieval value for each model? b) Which model is the better environm

> Green Forever, a manufacturer of lawn equipment, has preliminary drawings for two grass trimmer designs. Charla Fraley’s job is to determine which is better environmentally. Specifically, she is to use the following data to help the com

> A Southern Georgia school district is considering ordering 53 propane-fuelled school buses. “They’re healthier, they’re cleaner burning, and they’re much quieter than the diesel option,” said a school administrator. Propane-powered buses also reduce gree

> In 2018, George Wright started the Old Oregon Wood Store to manufacture Old Oregon tables. Each table is carefully constructed by hand using the highest-quality oak. Old Oregon tables can support more than 500 pounds, and since the start of the Old Orego

> A careful analysis of the cost of operating an automobile was conducted by accounting manager Dia Bandaly. The following model was developed: y^ = 4,000 + 0.20x Where y^ is the annual cost and x is the miles driven. a) If the car is driven 15,000 miles t

> The director of the Riley County, Kansas, library system would like to forecast evening patron usage for next week. Below are the data for the past 4 weeks: a) Calculate a seasonal index for each day of the week. b) If the trend equation for this problem

> Thamer Almutairi, owner of Almutairi’s Department Store, has used time-series extrapolation to forecast retail sales for the next 4 quarters. The sales estimates are $120,000, $140,000, $160,000, and $180,000 for the respective quarters. Seasonal indices

> Given the following data, use least-squares regression to derive a trend equation. What is your estimate of the demand in period 7? In period 12?

> Sales of industrial vacuum cleaners at Larry Armstrong Supply Co. over the past 13 months are shown below: a) Using a moving average with three periods, determine the demand for vacuum cleaners for next February. b) Using a weighted moving average with t

> Environmentally conscious Susan has been told that a new electric car will only generate 6 ounces of greenhouse gases (GHGs) per mile, but that a standard internal combustion car is double that at 12 ounces per mile. However, the nature of electric cars

> A company is investigating the make-or-buy decision for a new item with the following cost structure: a) At what volumes would each decision be preferred? b) What is the most economical decision for a volume of 15,000 units per year?

> Registration numbers for an accounting seminar over the past 10 weeks are shown below: a) Starting with week 2 and ending with week 11, forecast registrations using the naïve forecasting method. b) Starting with week 3 and ending with week 1

> Perform a “product-by-value” analysis on products A, B, C, D, and E.

> A company has developed a promising new product and examines the following three alternatives of manufacturing. Alternative 1 is to buy a semiautomatic machine with an initial cost of €130,000. Alternative 2 is to buy a fully automatic machine with an in

> Wheeled Coach, the world’s largest manufacturer of ambulances, builds thousands of different and constantly changing configurations of its products. The custom nature of its business means lots of options and special designs—and a potential scheduling an

> Prepare a bill of material for a mechanical pencil.

> Prepare a bill of material for a computer mouse (GeniMouse).

> Prepare a bill of material for the table illustrated:

> Prepare a bill of material for a wooden pencil, complete with eraser.

> Given the project diagram that follows, see graph (a) and the details of the accompanying table. How can you reduce the completion time of the project by 4 weeks in the most economical way?

> Prepare a bill of material and an assembly chart for a salad of your own choosing.

> A logistics company has been in business for 4 years and wants to develop monthly indices. Monthly inventory quantities for these years are shown in the table below. a) Develop monthly indices. b) Estimate next year’s forecast for the m

> Janice Eliasson must complete the activities in the following table to finish her consulting project. a) Draw the appropriate PERT diagram. b) Find the critical path and project completion time. c) Find the probability that the project will take more tha

> A small software development project at Krishna Dhir’s firm has five major activities. The times are estimated and provided in the following table. a) Find the expected completion time for this project. b) What variance value would be u

> A warehouse manager wants to estimate the inventory moving in and out of his warehouse each week. An analyst suggests using a 3-, 5-, or 7-week moving average. However, before deciding, he wants to compare the accuracy of each for the most recent 10-week

> With vast experience at venues such as the American Airlines Arena (in Miami), the Kentucky Derby, and Super Bowls, Chef John Nicely now also plans huge culinary events at Orlando’s Amway Centre, home of the Orlando Magic basketball tea

> Regal Marine, one of the U.S.’s 10 largest power-boat manufacturers, achieves its mission—providing luxury performance boats to customers worldwide—using the strategy of differentiation. It differentiates its products through constant innovation, unique

> Develop the BOM for product XYZ made from two units of B, five units of C, and four units of D. B is sub assembled from six units of E and two units of F; C from four units of E and three units of D, and D from two units of G and four units of H.

> The actual demand for the patients at Providence Emergency Medical Clinic for the first 6 weeks of this year follows: Clinic administrator Dara Schniederjans wants you to forecast patient demand at the clinic for week 7 by using this data. You decide to

> Refer to Solved Problem 4.1. Using smoothing constants of .6 and .9, develop forecasts for the sales of VW Beetles. What effect did the smoothing constant have on the forecast? Use MAD to determine which of the three smoothing constants (.3, .6, or .9) g

> A local retailer is thinking of using exponential smoothing to forecast one of his well-selling products. His problem is that he is not sure if he should use a low or a high value of a. For this reason, he uses the historical data available and tries wit

> The following represent activities in Marc Massoud’s Construction Company project. a) Draw the network to represent this situation. b) Which activities are on the critical path? c) What is the length of the critical path?

> When is the application of a multi-domestic strategy most appropriate? What kind of industries can this be applied to?

> An air conditioner factory makes three different types of air conditioners: the ceiling type, the cassette type, and the wall mounted type. Weekly sales of each type are 2, 4, and 6 units at a price of €350, €450, and €500 each, respectively. The ceiling

> A furniture manufacturing company working on a 40-hour week makes 100 chairs. The sales price is €70 each, and the company has the following costs: ◆ Direct materials: €700 ◆ Direct labour: €300 ◆ Overhead: €500 a) Calculate the productivity of the compa

> A production operation is making 150 pieces of a product by engaging 5 workers for 300 hours. However, 40% of the units appear to have various quality problems and the company decides to sell them as seconds at a price of €50 each when the normal unit is

> Mr. Achebe, who runs his photocopy business working 8 hours per day, processes 100 scripts in a day. He estimates his labour cost to be €9 per hour. Also, he has estimated that the total material cost for each script is approximately €2 while the daily e

> Hill’s Automotive, Inc., is an aftermarket producer and distributor of automotive replacement parts. Art Hill has slowly expanded the business, which began as a supplier of hard-to-get auto air-conditioning units for classic cars and hot rods. The firm h

> You are about to establish your own business; your strategy is to focus on your core business and outsource the customer service to an external service provider to handle the customers’ requirement queries and complaints. Based on an ex

> As an operations management student, you have been hired by a local restaurant to perform a factor-rating analysis to help the restaurant choose an outsourcing provider. You have identified three important factors: quality, taste, and delivery time; givi

> Refer to Problem 4.2. Develop a forecast for years 2 through 12 using exponential smoothing with a = .4 and a forecast for year 1 of 6. Plot your new forecast on a graph with the actual data and the naive forecast. Based on a visual inspection, which for

> The table below shows the activities, immediate predecessors, and activity durations of a project. Draw the AON project network. How long would it take to complete this project? What is the length of the critical path?

> Potamia Construction Co. (PCC) is developing plans to erect a new hospital building. Potamia Construction Co. has established the project activities and their immediate predecessor activities together with their estimated activity durations according to

> Draw the AON project network using the following information: How long would it take to complete this project? Which activities are included on the critical path?

> Thompson Industries’ supply chain manager, Xun Xu, wishes to better understand the quality and on-time performance of his supply base. He suggests that you, using the data in Figure G.5, use Excel to create a PivotTable that displays th

> Thompson Industries’ CEO, Gihan Edirisinghe, wishes to identify the top-performing suppliers to present with a performance award. He suggests that you, using the data in Figure G.5, use Excel to apply Conditional Formatting to the &acir

> Thompson Industries’ supply chain manager, Xun Xu, wishes to identify suppliers with the largest and smallest purchase levels, so he knows where to focus his purchasing resources. He suggests that you, using the data in Figure G.5, use

> Thompson Industries’ supply chain manager, Xun Xu, wishes to understand the makeup of his supply base better. He suggests that you, using the data in Figure G.5, use Excel to create a PivotTable that displays the number of suppliers, gr

> Using the data in Figure G.8(b), supply chain manager Jon Jackson wishes to use Excel’s Conditional Formatting to highlight any entries in column B that are at least as large as this year’s threshold level for distribu

> Using Figure G.2, analytics manager Vicky Luo wishes to set up Conditional Formatting in Excel to ensure that all the suppliers have different supplier numbers in column B. Which Conditional formatting ‘Rule Type’ shou

> Using Figure G.2, enter $6,000 into cell E8. In that spreadsheet, any new supplier (with a ‘Y’ in column J) should have its total purchases in column D equal to its change from the previous month in column E. Analytics

> For the ‘RejShip’ column (I) in Figure G.5: a) Determine the upper and lower limits for a 3-standard-deviation accuracy check. b) Which, if any, values fall outside the limits computed in part (a)? Data from Figure G5

> Operations manager Phil Witt wishes to apply the Blue – White – Red color scale using Excel’s Conditional Formatting to the following data: a) Which plant will be coloured the darkest shade of blue? b

> For the ‘Change’ column (E) in Figure G.5: a) Determine the upper and lower limits for a 3-standard-deviation accuracy check. b) Which, if any, values fall outside the limits computed in part (a)? Data from Figure G5:

> Professor Mary Beth Marrs took 6 hours to prepare the first lecture in a new course. Traditionally, she has experienced a 90% learning curve. How much time should it take her to prepare the 15th lecture?

> Elizabeth Perry, a student at SUNY, bought 6 bookcases for her dorm room. Each required unpacking of parts and assembly, which included some nailing and bolting. Elizabeth completed the first bookcase in 5 hours and the second in 4 hours. a) What is her

> Manceville Air has just produced the first unit of large industrial compressor that incorporated new technology in the control circuits and a new internal venting system. The first unit took 112 hours of labor to manufacture. The company knows from past

> Refer to Problem E.5. Beth Zion Hospital has just been informed that only the first 10 transplants must be performed at the hospital’s expense. The cost per hour of surgery is estimated to be $5,000. Again, the learning rate is 80% and the first surgery

> Andrew-Carter, Inc. (A-C), is a major Canadian producer and distributor of outdoor lighting fixtures. Its products are distributed throughout South and North America and have been in high demand for several years. The company operates three plants to man

> Beth Zion Hospital has received initial certification from the state of California to become a center for liver transplants. The hospital, however, must complete its first 18 transplants under great scrutiny and at no cost to the patients. The very first

> If it took 563 minutes to complete a hospital’s first cornea transplant, and the hospital uses a 90% learning rate, what is the cumulative time to complete: a) the first 3 transplants? b) the first 6 transplants? c) the first 8 transplants? d) the first

> Using the accompanying log-log graph, answer the following questions: a) What are the implications for management if it has forecast its cost on the optimum line? b) What could be causing the fluctuations above the optimum line? c) If management forecast

> If the first unit of a production run takes 1 hour and the firm is on an 90% learning curve, how long will unit 100 take?

> It takes 80,000 hours to produce the first jet engine at T.R.’s aerospace division and the learning factor is 90%. Help production manager Gopal Easwaran determine how long it takes to produce the eighth engine.

> If Professor Laurie Macdonald takes 15 minutes to grade the first exam and follows an 80% learning curve, how long will it take her: a) to grade the 25th exam? b) to grade the first 10 exams?

> Professor Hayes took 20 minutes to grade the first exam. He estimates that it will take him two hours to grade all 10 exams. What learning factor is he assuming?

> Cleaning a toxic landfill took EPA contractor, Henry Garcia, 300 labor-days. If Garcia follows an 85% learning rate, how long will the firm take, in total, to clean the next five (that is, landfills two through six)?

> If the fourth oil change and lube job at Trendo-Lube took 18 minutes and the second took 20 minutes, estimate how long a) the first job took. b) the third job took. c) the eighth job will take. d) the actual learning rate is.

> Dr. Che Mahmood took 563 minutes to complete a hospital’s first cornea transplant, and the hospital uses a 90% learning rate. How long should a) the third transplant take? b) the sixth transplant take? c) the eighth transplant take? d) the sixteenth tran

> Controlling inventory is one of Wheeled Coach’s toughest problems. Operating according to a strategy of mass customization and responsiveness, management knows that success is dependent on tight inventory control. Anything else results in an inability to

> An aircraft engine manufacturing company spent 68,000 man-hours to produce the first unit of a turbo engine; 40,000 man-hours were spent on the 27th production. Calculate the learning curve rate using log formula method.

> If the first unit of a production run takes 1 hour and the firm is on an 80% learning curve, how long will unit 100 take?

> The service times for a new data entry clerk have been measured and sequentially recorded as shown below: a) What is the learning curve rate, based on this information? b) Using an 85% learning curve rate and the above times, estimate the length of time

> A manufacturer of special petrochemical equipment with a proven track record of 80% learning has estimated that it spent 12,000 labour-hours at $25.00 per labour-hour on the production of the first unit of a customized equipment. However, the company has

> Girish Shambu and William Reisel are teammates at a discount store; their new job is assembling bicycles for customers. Assembly of a bike has a learning rate of 90%. They forgot to time their effort on the first bike, but spent 4 hours on the second set

> As the estimator for Rajendra Tibrewala Enterprises, your job is to prepare an estimate for a potential customer service contract. The contract is for the service of diesel locomotive cylinder heads. The shop has done some of these in the past on a spora

> Temple Trucking Co. just hired Ed Rosenthal to verify daily invoices and accounts payable. He took 9 hours and 23 minutes to complete his task on the 1st day. Prior employees in this job have tended to follow a 90% learning curve. How long will the task

> Richard Dulski’s firm is about to bid on a new radar system. Although the product uses new technology, Dulski believes that a learning rate of 75% is appropriate. The first unit is expected to take 700 hours, and the contract is for 40 units. a) What is

> If it took Boeing 28,718 hours to produce the eighth 787 jet and the learning-curve factor is 80%, how long did it take to produce the tenth 787?

> Regional Power owns 25 small power generating plants. It has contracted with Genco Services to overhaul the power turbines of each of the plants. The number of hours that Genco billed Regional to complete the third turbine was 460. Regional pays Genco $6

> Sandwiched between mass-market cruise line players such as Carnival and Disney, and luxury cruise lines such as Crystal Cruises, Celebrity is making a name for itself in the “premium” market, offering both an upscale e

> Central Electronics Corp. produces semiconductors and has a learning curve of .7. The price per bit is 100 Millicent’s when the volume is .7 × 1012 bits. What is the expected price at 1.4 × 1012 bits? What is the expected price at 89.6 × 1012 bits?

> Using the data from Problem E.14, how long will it take to complete the 12th plane? The 15th plane? How long will it take to complete planes 12 through 15 inclusive? At $40 per hour, what can Alwan, as purchasing agent, expect to pay for planes 12 throug

> Suad Alwan, the purchasing agent for Dubai Airlines, is interested in determining what he can expect to pay for airplane number 4 if the third plane took 20,000 hours to produce. What would Alwan expect to pay for plane number 5? Number 6? Use an 85% lea

> The better students at Providence Assessment Center have an 80% learning curve and can do a task in 20 minutes after just six times. You would like to weed out the weak students’ sooner and decide to evaluate them after the third unit. How long should th

> Providence Assessment Center screens and trains employees for a computer assembly firm in Boston. The progress of all trainees is tracked, and those not showing the proper progress are moved to less demanding programs. By the tenth repetition trainees mu

> D. Shimshak Systems is installing networks for Advantage Insurance. The first installation took 46 labor-hours to complete. Estimate how long the 4th and the 8th installations will take for each of the following learning rates: a) 92% b) 84% c) 77%

> The first vending machine that William Kane, Inc., assembled took 80 labor-hours. Estimate how long the fourth machine will require for each of the following learning rates: a) 95% b) 87% c) 72%

> Susan Sherer, an IRS auditor, took 45 minutes to process her first tax return. The IRS uses an 85% learning curve. How long will the: a) 2nd return take? b) 4th return take? c) 8th return take?

> An equipment manufacturer wants to decide on the location of a new facility. Currently, the company has a plant in Egypt and a plant in Turkey. The company is deciding where to build a new plant—Morocco or United Arab Emirates. Use the

> The Donna Mosier Clothing Group owns factories in three towns (W, Y, and Z), which distribute to three retail dress shops in three other cities (A, B, and C). The following table summarizes factory availabilities, projected store demands, and unit shippi

> Frito-Lay has flourished since its origin—the 1931 purchase of a small San Antonio firm for $100 that included a recipe, 19 retail accounts, and a hand-operated potato ricer. The multi-billion- dollar company, headquartered in Dallas, now has 41 products

> In Solved Problem C.1, Williams Auto Top Carriers proposed opening a new plant in either New Orleans or Houston. Management found that the total system cost (of production plus distribution) would be $20,000 for the New Orleans site. What would be the to

> A commercial bakery in Dubai has three production lines that supply baked goods to four stores. The cost of shipment from each production line to each store (in AED per 1,000 pieces) is shown in the table below. How many units should be shipped from each

> The following table is the result of one or more iterations. a) Complete the next iteration using the stepping-stone method. b) Calculate the “total cost” incurred if your results were to be accepted as the final solut

> Consider the transportation table below. The solution displayed was obtained by performing some iterations of the transportation method on this problem. What is the current cost of the plan that would be obtained by performing one more iteration of the s

> Refer to the table that follows. a) Use the northwest-corner method to find an initial feasible solution. What must you do before beginning the solution steps? b) Use the intuitive lowest-cost approach to find an initial feasible solution. Is this approa

> Consider the transportation table at right. Unit costs for each shipping route are in dollars. What is the total cost of the basic feasible solution that the intuitive lowest-cost method would find for this problem?

> The following table presents cost, capacity, and demand data for a transportation problem in Jinfeng Yue’s furniture company. Set up the appropriate transportation table and find the initial solution using the northwest-corner rule.