The owner of Eat Now Restaurant implemented an expanded menu early last year. The menu was a success, drawing many more customers, who seemed to like the increased variety of menu choices over that of the previous menu. But good news soon became bad news as long waiting lines began to deter customers, and business dropped off. Because of space and other limitations, there didn’t seem to be any viable options to consider. Then a customer mentioned a technique called mass customization that was being used in the company he worked for. He said it really streamlined processing, and maybe it could work for the restaurant. Describe how that approach might work at the restaurant and why that could be expected to reduce waiting times. What costs would be involve
> According to this chapter, what employment trends are expected for professionals in the fields of fraud examination and financial forensics? Why?
> What international opportunities exist in fraud examination and financial forensics?
> Explain the differences between an audit, fraud examination, and forensic accounting engagement.
> Describe the services that a forensic accountant might provide related to a marital dispute.
> How may lost profits be calculated using typical benchmarks?
> What is a ghost employee and what are the four steps needed to make this scheme work?
> Differentiate between fraud and abuse.
> Define fraud and identify a potentially fraudulent situation.
> What two points must an injured party prove to recover money in a civil lawsuit?
> What is meant by remediation?
> What is meant by corporate governance and why is it important?
> What is a deposition and why is it used?
> When may an expert’s opinion be subject to challenge?
> What is the difference between fact witnesses and expert witnesses?
> What are some of the ways in which financial statement fraud is committed?
> Why might senior management overstate or understate business performance?
> How may theft and alteration of outgoing company checks be prevented and detected?
> How can understating liabilities and expenses make a company appear more profitable?
> How are fictitious revenue schemes committed?
> What is the conceptual framework for financial reporting?
> What is defined as “something of value?”
> What are the different types of corruption schemes?
> What is the difference between fraud prevention and fraud deterrence?
> How does the “perception of detection” impact fraud deterrence?
> What legal mechanisms may be used to recover assets in the civil or criminal justice systems?
> What are the differences between forged maker and forged endorsement schemes?
> Which is the most effective control to prevent receivables skimming?
> What steps should an organization take to prevent fraudulent shipments of merchandise?
> How may the larceny of noncash assets be prevented?
> What types of company assets are typically misused?
> How are noncash assets misappropriated?
> What is the difference between skimming and cash larceny?
> How do e-discovery rules impact the storage of email and other electronic files?
> Why is it problematic for an organization to set standards that are too high?
> What computer functions that can make recovering deleted files more difficult?
> What is computer forensics?
> What are the types of losses available for recovery?
> What are the two major approaches for testing IT system controls?
> How is case management software used in an investigation?
> What role do graphics play in an investigation?
> What functions are used by data extraction and analysis software to highlight red flags of fraud?
> What are the five types of interview and interrogation questions?
> What are some suggested approaches for conducting interviews?
> Why are interviews in fraudulent financial statements and tax returns handled differently than interviews in other fraud examinations?
> What type of abuses may occur at the pre-solicitation stage of the bidding process?
> How does the legal system differentiate between “following” versus “tracing” the money?
> What are some of the decisions that need to be made with regard to quantifying lost revenues and increased expenses?
> What are the most common measures of system performance in a queuing analysis?
> Describe two examples of unethical behavior related to waiting line management, and state which ethical principles they violate.
> There are certain instances where pooling of operations can be desirable. For example, a large factory may have two or more locations where mechanics can obtain special tools or equipment they occasionally need. The separate locations mean less travel ti
> A retired couple supplement their income by making fruit pies, which they sell to a local grocery store. During the month of September, they produce apple and grape pies. The apple pies are sold for $1.50 to the grocer, and the grape pies are sold for $1
> Solve each of these problems by computer and obtain the optimal values of the decision variables and the objective function. a. Maximize Z = 4x1 + 2x2 + 5x3 Subject to 1x1 + 2x2 + 1x3 ≤ 25 1x1 + 4x2 + 2x3 ≤ 40 3x1 + 3x2 + 1x3 ≤ 30
> A small candy shop is preparing for the holiday season. The owner must decide how many bags of deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has 2⁄3 pound raisins and 1⁄3 pound peanuts, and the standard mi
> One operator services a bank of five machines. Machine running time and service time are both exponential. Machines run for an average of 90 minutes between service requirements, and service time averages 35 minutes. The operator receives $20 per hour in
> An appliance manufacturer produces two models of microwave ovens: H and W. Both models require fabrication and assembly work; each H uses four hours of fabrication and two hours of assembly, and each W uses two hours of fabrication and six hours of assem
> Solve these problems using graphical linear programming and then answer the questions that follow. Use simultaneous equations to determine the optimal values of the decision variables. a. Minimize    Â
> Solve these problems using graphical linear programming and answer the questions that follow. Use simultaneous equations to determine the optimal values of the decision variables. a. Maximize    Â&nbs
> A garden store prepares various grades of pine bark for mulch: nuggets (x1), mini-nuggets (x2), and chips (x3). The process requires pine bark, machine time, labor time, and storage space. The following model has been developed. Maximize Z = 9 x1 + 9x2 +
> A priority waiting system assigns arriving customers to one of four classes. Arrival rates (Poisson) of the classes are shown in the following table. Five servers process the customers, and each can handle three customers per hour. Class ……………………….Arriv
> Given this linear programming model, solve the model and then answer the questions that follow. Maximize Z = 12x1 + 18x2 + 15x3 where x1 = the quantity of product 1 to make, etc. Subject to Machine 5x1 + 4x2 + 3x3 ≤ 160 minutes Labor
> A manager must determine requirements for waiting space for customers. A priority system is used to process customers, who are assigned to one of two classes when they enter the processing center. The highest-priority class has an arrival rate of four pe
> Trucks arrive at the loading dock of a wholesale grocer at the rate of 1.2 per hour. A single crew consisting of two workers can load a truck in about 30 minutes. Crew members receive $10 per hour in wages and fringe benefits, and trucks and drivers refl
> Customers arriving at a service center are assigned to one of three categories, with category 1 given the highest priority. Records indicate that an average of nine customers arrive per hour and that one-third are assigned to each category. There are two
> A milling department has 10 machines. Each operates an average of eight hours before requiring adjustment, which takes an average of two hours. While running, each machine can produce 40 pieces an hour. a. With one adjuster, what is the net average hourl
> What approaches do supermarkets use to offset variations in customer traffic intensity?
> A chocolate maker has contracted to operate a small candy counter in a fashionable store. To start with, the selection of offerings will be intentionally limited. The counter will offer a regular mix of candy made up of equal parts of cashews, raisins, c
> A manager wants to know how many units of each product to produce on a daily basis in order to achieve the highest contribution to profit. Production requirements for the products are shown in the following table. Material 1 costs $5 a pound, material
> Consider this situation: A manager is contemplating making changes to a single-server system that is expected to double the service rate, and still have just one server. a. Would you (intuitively) think that doubling the service rate of a single-server s
> The manager of the deli section of a grocery superstore has just learned that the department has 112 pounds of mayonnaise, of which 70 pounds is approaching its expiration date and must be used. To use up the mayonnaise, the manager has decided to prepar
> A wood products firm uses available time at the end of each week to make goods for stock. Currently, two products on the list of items are produced for stock: a chopping board and a knife holder. Both items require three operations: cutting, gluing, and
> Formulate and then solve a linear programming model of this problem, to determine how many containers of each product to produce tomorrow to maximize profits. The company makes four juice products using orange, grapefruit, and pineapple juice. Product …
> Two operators handle adjustments for a group of 10 machines. Adjustment time is exponentially distributed and has a mean of 14 minutes per machine. The machines operate for an average of 86 minutes between adjustments. While running, each machine can tur
> A small firm makes three similar products, which all follow the same three-step process, consisting of milling, inspection, and drilling. Product A requires 12 minutes of milling, 5 minutes for inspection, and 10 minutes of drilling per unit; product B r
> For Problem 6b: a. Find the range of feasibility for each constraint, and interpret your answers. b. Determine the range of optimality for each coefficient of the objective function. Interpret your results.
> For Problem 6a, determine the following: a. The range of feasibility for each constraint b. The range of optimality for the coefficients of the objective function
> Briefly explain these terms: a. Basic variable b. Shadow price c. Range of feasibility d. Range of optimality
> For which decision environment is linear programming most suited?
> What is the maximum profit that can be achieved by purchasing additional wood?
> What general trade-offs are involved in waiting line decisions?
> If you were the manager, which option would you select? Why? Explain the disparity between the results for the two options. What assumptions did you make in your analysis? The operations manager of a soon-to-open branch of a large bank is in the process
> How has technology had an impact on analyzing waiting line systems? How has technology improved waiting line performance?
> One field representative services five customers for a computer manufacturer. Customers request assistance at an average (Poisson-distributed) rate of once every four working days. The field representative can handle an average (Poisson-distributed) of o
> What happens to the length of a waiting line in a highly variable (queuing) setting if a manager attempts to achieve a high percentage of capacity utilization?
> The manager of a regional warehouse must decide on the number of loading docks to request for a new facility in order to minimize the sum of dock costs and driver-truck costs. The manager has learned that each driver-truck combination represents a cost
> Trucks are required to pass through a weighing station so that they can be checked for weight violations. Trucks arrive at the station at the rate of 40 an hour between 7:00 p.m. and 9:00 p.m. Currently two inspectors are on duty during those hours, each
> A small town with one hospital has two ambulances to supply ambulance service. Requests for ambulances during non-holiday weekends average .45 per hour and tend to be Poisson-distributed. Travel and assistance time averages two hours per call and follows
> The following information pertains to telephone calls to a motel switchboard on a typical Tuesday a. Determine the average time callers wait to have their calls answered for each period and the probability that a caller will have to wait for each perio
> Many of a bank’s customers use its automatic teller machine to transact business after normal banking hours. During the early evening hours in the summer months, customers arrive at a certain location at the rate of one every other minute. This can be mo
> A vending machine dispenses hot chocolate or coffee. Service time is 30 seconds per cup and is constant. Customers arrive at a mean rate of 80 per hour, and this rate is Poisson-distributed. Determine the following: a. The average number of customers wai
> a. λ = 3 customers/hour μ = 5 customers/hour M = 1 (1) What is the system utilization? (2) What is the average number of customers waiting for service? (3) What is the average time customers wait in line for service? b. Repair calls are handled by one re
> During the morning hours at a catalog sales department, telephone calls come in at the rate (Poisson) of 40 per hour. Calls that cannot be answered immediately are put on hold. The system can handle eight callers on hold. If additional calls come in, the
> Son, Ltd., manufactures a variety of chemical products used by photo-processors. Son was recently bought out by a conglomerate, and managers of the two organizations have been working together to improve the efficiency of Son’s operatio
> Referring to Problem 16, suppose that each server could handle four customers per hour. Answer the questions posed in the problem. Explain why the impact of reassigning customers is much less than in Problem 16.
> The parts department of a large automobile dealership has a counter used exclusively for mechanics’ requests for parts. The time between requests can be modeled by a negative exponential distribution that has a mean of five minutes. A clerk can handle re
> One proposal is to make equal amounts of the products. What amount of each will maximize contribution, and what quantities of labor and materials will be needed? How much less will total contribution be if this proposal is adopted? Son, Ltd., manufactur
> A project manager may need two skill sets—those of a manager and those of a leader. Explain.
> This reading offers one possible reason for the existence of a long supply process. Can you think of some other possible reasons for long supply processes?
> What is the kanban aspect of JIT?
> Why is scheduling fairly simple for repetitive systems but fairly complex for job shops?
> How are scheduling and productivity related?
