Question: Rosa’s Italian restaurant wants to develop

> 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)  

> 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

> 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………………………........

> 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

> The manager of a small health clinic would like to use exponential smoothing to forecast demand for laboratory services in the facility. However, she is not sure whether to use a high or low value of α. To make her decision, she would like to compare the

> Frederick’s Farm Factory (FFF) currently maintains an average inventory valued at $3,400,000. The company estimates its capital cost at 10 percent, its storage cost at 4.5 percent, and its risk cost at 6 percent. a) Calculate the annual holding cost rate

> The following data are monthly sales of jeans at a local department store. The buyer would like to forecast sales of jeans for the next month, July. a) Forecast sales of jeans for March through June using the naïve method, a two-period moving average, an

> Hospitality Hotels forecasts monthly labor needs. a) Given the following monthly labor figures, make a forecast for June using a three-period moving average and a five-period moving average. Month Actual Values  January 32  February 41  March 3

> Given the sales data from Problem 23, generate forecasts for months 7–24 using a six-period and a three-period moving average. Use MAD to compare the forecasts. Which forecast is more stable? Which is more responsive and why? Problem 23: Mop and Broom M

> Consider the information from Problem 7. Determine how the number of kanbans and the inventory level will be affected if the time required for Robert to receive the material increases to 30 minutes. Information from Problem 7: Robert produces 300 units

> Robert produces 300 units of a product per hour and 30 units are needed to fill a container. It takes 15 minutes to receive the materials needed from the previous workstation. The company currently uses a safely stock of 10 percent. Determine the number

> Anna works on an assembly line where it takes her 30 minutes to produce 20 units of a product needed to fill a container. It takes her an additional 5 minutes to transport the container to Josh, who works at the next station. The company uses a safety st

> A dye cell at the Acme Clothing Factory uses 500 pounds of dye each day. The dye is moved in vats at a rate of approximately one per hour. Each vat holds 10 pounds of dye. Management has set safety stock at 10 percent. The facility operates 8 hours per d

> Carlos Gonzales is production manager at an assembly plant that manufactures cordless telephones. The company is planning to install a pull system. The process is being planned to have a usage rate of 50 pieces per hour. Each container is designed to hol

> Howard Plastics produces plastic containers for use in the food packaging industry. Last year its average monthly production included 20,000 containers produced using one shift five days a week with an eight-hour-a-day operation. Of the items produced 15

> A production cell at Canderberry Candle facility operates 5 hours per day and uses a pull method to supply wicks to the assembly line. The wicks are used at a rate of 300 per day. Each container holds 20 wicks and usually waits 20 minutes in the producti

> What is the inventory turnover for Genuine Reproductions from Problems 3 and 4 if sales actually increase 20 percent but the average inventory rises to $325,000?

> A manufacturer of thermostats uses a kanban system to control the flow of materials. The packaging center processes 10 thermostats an hour and receives completed thermostats every 30 minutes. Containers hold 5 thermostats each. a) How many kanbans are ne

> Jason Carter works for a producer of soaps that come in packages of 6 each. His job is to fill the packages with soap, and he is expected to process 30 packages an hour. The facility where Jason works uses a kanban production system in which each contain

> Consider the information from Problem 7. Determine how the number of kanbans and the inventory level will be affected if: a) The container size is decreased to 15 units. b) The container size is increased to 40 units. c) The safety stock is increased to

> The Crunchy Potato Chip Company sells chips in boxes with a net weight of 30 ounces per box (850 grams). Each box contains ten individual 3-ounce packets of chips. Product design specifications call for the packet-filling process average to be set at 86.

> The Crunchy Potato Chip Company packages potato chips in a process designed for 10.0 ounces of chips with an upper specification limit of 10.5 ounces and a lower specification limit of 9.5 ounces. The packaging process results in bags with an average net

> Breeze Toothpaste Company has been having a problem with some of the tubes of toothpaste leaking. The tubes are packed in containers with 100 tubes each. Ten containers of toothpaste have been sampled. The following number of toothpaste tubes were found

> Joshua Simms has recently been placed in charge of purchasing at the Med-Tech Labs, a medical testing laboratory. His job is to purchase testing equipment and supplies. Med-Tech currently has a contract with a reputable supplier in the industry. Joshua’s

> A computer manufacturer purchases microchips from a world-class supplier. The buyer has a lot tolerance proportion defective of 10 parts in 5000, with a consumer’s risk of 15 percent. If the computer manufacturer decides to sample 2000 of the microchips

> Develop an OC curve for a sampling plan in which a sample of n = 10 items is drawn from lots of N = 1000. The accept/reject criteria are set up in such a way that we accept a lot if no more than one defect (c = 1) is found.

> Aztec Furnishings makes hand-crafted furniture for sale in its retail stores. The furniture maker has recently installed a new assembly process, including a new sander and polisher. With this new system, production has increased to 90 pieces of furniture

> Genuine Reproductions (GR) plans on increasing next year’s sales by 20 percent while maintaining its same average inventory in dollars of $250,000. a) Calculate the expected inventory turnover for next year. b) Calculate the expected weeks of supply.

> Quality Style manufactures self-assembling furniture. To reduce the cost of returned orders, the manager of its quality control department inspects the final packages each day using randomly selected samples. The defects include wrong parts, missing conn

> Develop an OC curve for a sampling plan in which a sample of n = 5 items is drawn from lots of N = 1000 items. The accept/reject criteria are set up in such a way that we accept a lot if no more than one defect (c = 1) is found.

> Compute the Cpk measure of process capability for the following machine and interpret the findings. What value would you have obtained with the CP measure? Machine data: USL = 100 LSL = 70 Process σ = 5 Process μ = 80

> Three ice-cream packing machines at the Creamy Treat Company are being evaluated for their capability. The following data are recorded: Packing Machine Standard Deviation  A 0.2  B 0.3  C 0.05   If specifications are set between 15.8 and 16.2

> University Hospital has been concerned with the number of errors found in its billing statements to patients. An audit of 100 bills per week over the past 12 weeks revealed the following number of errors: Week Number of Errors  1 4  2 5  3 6 

> U-learn University uses a c-chart to monitor student complaints per week. Complaints have been recorded over the past ten weeks. Develop 3-sigma control limits using the following data: Sample Number of Complaints  1 0  2 3  3 1  4 1  5 0

> A production manager at a Contour Manufacturing plant has inspected the number of defective plastic molds in 5 random samples of 20 observations each. Following are the number of defective molds found in each sample: Sample Number of Defects Number of

> Ten samples with five observations each have been taken from the Beautiful Shampoo Company plant in order to test for volume dispersion in the shampoo bottle-filling process. The average sample range was found to be 0.3 ounces. Develop control limits for

> A quality control inspector has taken four samples with five observations each at the Beautiful Shampoo Company, measuring the volume of shampoo per bottle. If the average range for the four samples is 0.4 ounces and the average mean of the observations

> A quality control inspector at the Beautiful Shampoo Company has taken three samples with four observations each of the volume of shampoo bottles filled. The data collected by the inspector and the computed means are shown here: Samples of Shampoo Bottl

> Joe, the owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture, is interested in measuring inventory effectiveness. Last year the cost of goods sold at GR was $3,000,000. The average inventory in dollars was $250,000. a)

> A painter is considering using a new high-tech paint roller. Yesterday he was able to paint three walls in 45 minutes using his old method. Today he painted two walls of the same size in 20 minutes. Is the painter more productive using the new paint roll

> The Fresh Pie Company purchases apples from a local farm to be used in preparing the filling for its apple pies. Sometimes the apples are fresh and ripe. Other times they can be spoiled or not ripe enough. The company has decided that it needs an accepta

> A tire manufacturer has been concerned about the number of defective tires found recently. In order to evaluate the true magnitude of the problem, a production manager selected 10 random samples of 20 units each for inspection. The number of defective ti

> The Awake Coffee Company produces gourmet instant coffee. The company wants to be sure that the average fill of coffee containers is 12.0 ounces. To make sure the process is in control, a worker periodically selects at random a box of six containers of c

> A production manager at Ultra Clean Dishwashing Company is monitoring the quality of the company’s production process. There has been concern relative to the quality of the operation in accurately filling the 16 ounces of dishwashing liquid. The product

> A quality control manager at a manufacturing facility has taken four samples with four observations each of the diameter of a part. a) Compute the mean of each sample. b) Compute an estimate of the mean and standard deviation of the sampling distribution

> Breeze Toothpaste Company makes tubes of toothpaste. The product is produced and then pumped into tubes and capped. The production manager is concerned whether the filling process for the tubes of toothpaste is in statistical control. The process should

> Bio Tech Research Center is working to develop a new vaccine for the West Nile Virus. The project is so important that the firm has created three teams of experts to work on the project from different perspectives. Team 1 has a 90 percent chance of succe

> A university Web server has five main components, each with the same reliability. All five components must work for the server to function as intended. If the university wants to have a 95 percent reliability, what must be the reliability of each of the

> An LCD projector in an office has a main light bulb with a reliability of 0.90 and a backup bulb, the reliability of which is 0.80. The system looks as follows: What is the reliability of the system? 0.80 0.90

> Yasuko’s Art Emporium (YAE) ships art from its studio located in the Far East to its distribution center located on the West Coast of the United States. YAE can send the art either via transoceanic ship freight service (15 days transit) or by air freight