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 acceptance sampling plan for the purchased apples. Fresh Pie has decided that the acceptable quality level is 2 defective apples per 100, and the lot tolerance proportion defective is 5 percent. Producer’s risk should be no more than 5 percent and consumer’s risk 10 percent or less. a) Develop a plan that satisfies the above requirements. b) Determine the AOQL for your plan, assuming that the lot size is 1000 apples.
> 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
> 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
> 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
> A bank loan processing system has three components with individual reliabilities as shown: What is the reliability of the bank loan processing system? R, = 0.90 R2 = 0.89 %3D R3 = 0.95 %3D
> A company that makes kitchen chairs wants to compare productivity at two of its facilities. At facility #1, six workers produced 240 chairs. At facility #2, four workers produced 210 chairs during the same time period. Which facility was more productive?
> An engine system consists of three main components in a series, all having the same reliability. Determine the level of reliability required for each of the components if the engine is to have a reliability of 0.998.
> An office copier has four main components in a series with the following reliabilities: 0.89, 0.95, 0.90, and 0.90. Determine the reliability of the copier.
> A jet engine has 10 components in series. The average reliability of each component is 0.998. What is the reliability of the engine?
> A CD player has five components that all must function for the player to work. The average reliability of each component is 0.90. What is the reliability of the CD player?
> What would be the reliability of the bank system above if each of the three components had a backup with a reliability of 0.80? How would the total reliability be different?
> The following system of components has been proposed for a new product. Determine the reliability of the system. R = 0.85 R = 0.90 R = 0.90 %3D R = 0.85 R = 0.90 R = 0.95
> Gabriela Manufacturing was able to find a new supplier that would provide the item for $1.80 per unit with an annual fixed cost of $200,000. Should Gabriela Manufacturing insource or outsource the item?
> Henri of Henri’s French Cuisine (HFC), a chain of 12 restaurants, is trying to decide if it makes sense to outsource the purchasing function. Currently, Henri employs two buyers at an annual fixed cost of $85,000. Henri estimates that the variable cost o
> Elyssa’s Elegant Eveningwear (EEE) needs to ship finished goods from its manufacturing facility to its distribution warehouse. Annual demand for EEE is 2400 gowns. EEE can ship the gowns via regular parcel service (3 days transit time), premium parcel se
> Fast Finish, Inc. (FFI) has made a technological breakthrough in snow board finish application. FFI will apply the finish for $0.23 per unit in variable costs plus a fixed annual cost of $230,000. Use the cost and demand information given in Problem 3 fo
> Downhill Boards (DB), a producer of snow boards, is evaluating a new process for applying the finish to its snow boards. Durable Finish Company (DFC) has offered to apply the finish for $170,000 in fixed costs and a unit variable cost of $0.65. Downhill
> One type of bread-making machine can make six loaves of bread in five hours. A new model of the machine can make four loaves in two hours. Which model is more productive?
> Gabriela Manufacturing must decide whether to insource or outsource a new toxic-free miracle carpet cleaner that works with its Miracle Carpet Cleaning Machine. If it decides to insource the product, the process would incur $300,000 of annual fixed costs
> Cal’s Carpentry is considering outsourcing its accounts receivable function. Currently, Cal employs two full-time clerks and one part-time clerk to manage accounts receivable. Each fulltime clerk has an annual salary of $36,000 plus fringe benefits costi
> If the company wants to complete the project in 40 weeks, which activities should be crashed? Calculate the additional cost incurred to complete the project in 40 weeks. Activity Immediate Predecessor(s) Normal Time (weeks) Normal Cost ($) Crash Tim
> Draw the network diagram. Determine the normal time it will take to complete this project. Determine the critical path for the project. Calculate the cost of completing the project in normal time. Activity Immediate Predecessor(s) Normal Time (weeks)
> The accounting department at Northeast University is offering a combined five-year B.S./M.S. in accounting. The senior accounting professor has identified the project activities and any precedence relationships, as shown in Table 16-15. Three time estima
> Jacob’s Baby Food Company must go through the following steps to make mashed carrots: (1) Unload carrots from truck (2) Inspect carrots (3) Weigh carrots (4) Move to storage (5) Wait until needed (6) Move to washer (7) Boil in water (8) Mash carrots (9)
> Using the information given and expected project completion time from Problem 13(c), a) Calculate the probability of completing the project in 36 weeks. b) Calculate the probability of completing the project in 40 weeks. Figure 16-21. Network diagram A
> My Kitchen Delights (MKD), a regional producer of gourmet jams and jellies, uses approximately 24,000 glass jars each month during its production. Because of space limitations, MKD orders 5000 jars at a time. Monthly holding cost is $0.08 per jar, and th
> Using the information given and the project completion time calculated in Problem 9(a), calculate the minimum time for completing the project possible. Table 16-14 Activity Normal Time (weeks) Normal Cost ($) Crash Time (weeks) Crash Cost ($) Maximum w
> Using the information given and the project completion time calculated in Problem 9(a), reduce the completion time of the project by 5 weeks in the most economical way. Table 16-14 Activity Normal Time (weeks) Normal Cost ($) Crash Time (weeks) Crash C
> Using the information given and the project completion time calculated in Problem 9(a), reduce the completion time of the project by 3 weeks in the most economical way. Table 16-14 Activity Normal Time (weeks) Normal Cost ($) Crash Time (weeks) Crash Co
> Using the information given, a) Calculate the completion time of the project. b) Identify the activities on the critical path. Table 16-14 Activity Normal Time (weeks) Normal Cost ($) Crash Time (weeks) Crash Cost ($) Maximum weeks Reduced Crash Cost p
> Using your results from Problem 6, a) Calculate the probability that the project will be completed in 38 weeks. b) Calculate the probability that the project will be completed in 42 weeks. Activity Optimistic Time Estimate (weeks) Most Likely Time Est
> Using your results from Problems 4 and 5, a) Calculate the completion time for this project. b) Identify the activities included on the critical path of this project. Activity Optimistic Time Estimate (weeks) Most Likely Time Estimates (weeks) Pessim
> Using the information given, calculate the variance for each of the project activities. Activity Optimistic Time Estimate (weeks) Most Likely Time Estimates (weeks) Pessimistic Time Estimates (weeks) Immediate Predecessor(s) A 3 6 9 none B
> Using the information given, calculate the expected time for each of the project activities. Activity Optimistic Time Estimate (weeks) Most Likely Time Estimates (weeks) Pessimistic Time Estimates (weeks) Immediate Predecessor(s) A 3 6 9 none
> Jack’s Floating Banana Party Company is planning to add a new party vessel for the upcoming season. Jack has identified several activities that must be finished before the start of the season. Using the following information, Activity Activity Time (we
> Mop and Broom Manufacturing is evaluating whether to produce a new type of mop. The company is considering the operations requirements for the mop as well as the market potential. Estimates of fixed costs per year are $40,000, and the variable cost for e
> Michael’s Office Supply (MOS) sells office furniture, equipment, and supplies. This week the company has received 50 customer orders. Each order has an average of five line items. The average dollar amount of each order is $1200. MOS was able to ship 47
> Using the network diagram constructed in Problem 1, a) Calculate the completion time for the project. b) Determine which activities are included on the critical path.
> Construct a network diagram using AON notation. Activity Activity Time (weeks) Immediate Predecessor(s) A 3 none B 4 A C 2 B D 5 B E 4 C F 3 D G 2 E, F
> The dean of the business school wants to start offering this program starting 32 weeks from now. Using the information provided in Problem 15, a) Calculate the probability of the program starting on time. b) If the dean needs a 95 percent probability of
> Using the information given, a) Calculate the expected time for each of the project activities. b) Calculate the variance for each of the project activities. c) Evaluate the connected paths through the diagram to determine the expected project completion
> Using the information given, construct a network diagram using AON notation. Activity Optimistic Time Estimate (weeks) Most Likely Time Estimates (weeks) Pessimistic Time Estimates (weeks) Immediate Predecessor(s) A 3 6 9 none B 3 5 7
> Determine the absolute minimum time it will take to complete the project if the project is crashed as far as possible. Calculate the cost associated with this approach to the project. Activity Immediate Predecessor(s) Normal Time (weeks) Normal Cost
> Using the information in Problem 24, develop a sequence based on the longest processing time priority rule. Prioritize based on prep time. In the case of ties, select the house that has the longest paint time. a) Calculate the makespan. b) Calculate the
> Using the job information in Problem 24, develop a sequence based on the shortest processing time priority rule. Prioritize based on prep time. In the case of ties, select the house that has the shortest paint time. a) Calculate the makespan. b) Calculat
> Student Premier Painters (SPP) has six house painting jobs in a particular neighborhood. The houses vary in size, condition, and painting requirements, but each house must be prepped (cleaned, sanded, and primed) first, before it is painted. The relevant
