The Uptown Kiln is an importer of ceramics from overseas. It has arranged to purchase a particular type of ceramic pottery from a Korean artisan. The artisan makes the pottery in 120-unit batches and will ship only that exact number of units. The transportation and handling cost of a shipment is $7,600 (not including the unit cost). The Uptown Kiln estimates its annual demand to be 900 units. What storage and handling cost per unit does it need to achieve to minimize its inventory cost?
> As part of Dubai Development Plan, Roads and Transport Authority (RTA) plans to connect malls and recreational places through public transport. It has identified 10 such places whose locations are depicted in the following network diagram. The values on
> Etisalat provides e-life home entertainment services to residents of Dubai through high-speed underground cables. Assume that the current network shows the distance between neighborhoods in kilometers. Find out the optimum length of cables required to co
> The management of the Dynaco manufacturing plant wants to connect the eight major manufacturing areas of its plant with a forklift route. Because the construction of such a route will take a considerable amount of plant space and disrupt normal activitie
> Consider the network in Problem 6, but with the following new time estimates for each activity: Determine the following: a. Expected activity times b. Earliest activity times c. Latest activity times d. Activity slack e. Critical path f. Expected project
> One of the opposing forces in a simulated army battle wishes to set up a communications system that will connect the eight camps in its command. The following network indicates the distances (in hundreds of yards) between the camps and the different path
> A developer is planning a development that includes subdivisions of houses, cluster houses, townhouses, apartment complexes, shopping areas, a daycare center and playground, a community center, and a school, among other facilities. The developer wants to
> An airline company operates a fleet of airplanes. If it buys an airplane, it can be run up to three years. For safety reasons, the plane should be replaced at the end of the third year. The airline evaluates the heath of the airplanes every year, and if
> A new police car costs the Bay City Police Department $26,000. The annual maintenance cost for a car depends on the age of the car at the beginning of the year. (All cars accumulate approximately the same mileage each year.) The maintenance costs increas
> A disaster response agency serves seven regions from its central warehouse (1). Due to the recent storm, many roads to the regions are closed. Only the available roads for transportation are depicted in the following diagram. The travel time required in
> John Clooney, a bush pilot in Alaska, makes regular charter flights in his floatplane to various towns and cities in western Alaska. His passengers include hunters, fishermen, backpackers and campers, and tradespeople hired for jobs in the different loca
> The Voyager spacecraft has been transported by an alien being to the Delta Quadrant of space, millions of light-years from Earth. Captain Janeway and her crew are attempting to plot the shortest course home. Following is a network of the possible routes
> In 1862, during the second year of the Civil War, General Thomas J. “Stonewall” Jackson fought a brilliant military campaign in the Shenandoah Valley in Virginia. One of his victories was at the Battle of McDowell. Usi
> George is camped deep in the jungle, and he wants to make his way back to the coast and civilization. Each of the paths he can take through the jungle has obstacles that can delay him, including hostile natives, wild animals, dense forests and vegetation
> A community celebration is to be conducted at City 1 for republic day. The public transport authorities plan to operate buses from all other cities (2 through 6) to the celebration venue. The following diagram depicts the available routes and the travel
> The Farmer’s American Bank of Leesburg is planning to install a new computerized accounts system. Bank management has determined the activities required to complete the project, the precedence relationships of the activities, and activi
> A furniture manufacturer supplies furniture to nine different outlets in Dubai from its warehouse in Jebel Ali. The distance between the warehouse and the different outlets in kilometers based on the possible routes are shown in the following diagram. Fi
> Determine the shortest route from node 1 (origin) to node 12 (destination) for the following net- work. Distances are given along the network branches:
> A steel mill in Gary, Indiana, supplies steel to manufacturers in eight other midwestern cities by truck, as shown in the following network: The travel time between cities, in hours, is shown along each branch. Determine the shortest route from Gary to e
> The Hylton Hotel has a limousine van that transports guests to various business and tourist locations around the city. The following network indicates the different routes the limousine could follow from the hotel at node 1 to the nine locations (nodes 2
> The Petroco gasoline distributor in Jackson, Mississippi, supplies service stations in nine other southeastern cities, as shown in the following network: The distance, in miles, is shown on each branch. Determine the shortest route from Jackson to the ni
> The Burger Doodle restaurant franchises in Los Angeles are supplied from a central warehouse in Inglewood. The location of the warehouse and its proximity, in minutes of travel time, to the franchises are shown in the following network: Trucks supply eac
> The Big Buy Supermarket stocks Munchies Cereal. Demand for Munchies is 4,000 boxes per year (365 days). It costs the store $60 per order of Munchies, and it costs $0.80 per box per year to keep the cereal in stock. Once an order for Munchies is placed, i
> The Petroco Company uses a highly toxic chemical in one of its manufacturing processes. It must have the product delivered by special cargo trucks designed for safe shipment of chemicals. As such, ordering (and delivery) costs are relatively high, at $2,
> The Pedal Pusher Bicycle Shop operates 7 days per week, closing only on Christmas Day. The shop pays $300 for a particular bicycle purchased from the manufacturer. The annual holding cost per bicycle is estimated to be 25% of the dollar value of inventor
> The Simple Simon Bakery produces fruit pies for freezing and subsequent sale. The bakery, which operates 5 days per week, 52 weeks per year, can produce pies at the rate of 64 pies per day. The bakery sets up the pie production operation and produces unt
> Given the following network and activity time estimates, determine the expected time and variance for each activity, and indicate the critical path:
> The Metropolitan Book Company purchases paper from the Atlantic Paper Company. Metropolitan produces magazines and paperbacks that require 1,215,000 pounds of paper per year. The cost per order for the company is $1,200; the cost of holding 1 pound of pa
> The concession stand at the Blacksburg High School stadium sells slices of pizza during soccer games. Concession stand sales are a primary source of revenue for high school athletic programs, so the athletic director wants to sell as much food as possibl
> The Impanema Restaurant stocks a red Brazilian table wine it purchases from a wine merchant in a nearby city. The daily demand for the wine at the restaurant is normally distributed, with a mean of 18 bottles and a standard deviation of 4 bottles. The wi
> The Fast Service Food Mart stocks frozen pizzas in a refrigerated display case. The average daily demand for the pizzas is normally distributed, with a mean of 8 pizzas and a standard deviation of 2.5 pizzas. A vendor for a packaged food distributor chec
> The Corner Drug Store fills prescriptions for a popular children’s antibiotic, amoxicillin. The daily demand for amoxicillin is normally distributed, with a mean of 200 ounces and a standard deviation of 80 ounces. The vendor for the pharmaceutical firm
> PM Computers in Problem 42 is considering purchasing monitors from an American manufacturer that would guarantee a lead time of 8 days, instead of the Taiwanese company. Determine the new reorder point, given this lead time, and identify the factors that
> PM Computers assembles personal computers from generic components. It purchases its color monitors from a manufacturer in Taiwan; thus, there is a long and uncertain lead time for receiving orders. Lead time is normally distributed, with a mean of 25 day
> The daily demand for Sunlight paint at the Rainbow Paint Store in East Ridge is normally distributed, with a mean of 26 gallons and a standard deviation of 10 gallons. The lead time for receiving an order of paint from the Sunlight distributor is 9 days.
> In Problem 39, the manager of the Uptown Bar and Grill has negotiated with the beer distributor for the lead time to receive orders to be a constant 3 days. What effect does this have on the reorder point developed in Problem 39 for a 90% service level?
> The Western Jeans Company purchases denim from Cumberland Textile Mills. The Western Jeans Company uses 35,000 yards of denim per year to make jeans. The cost of ordering denim from the textile company is $500 per order. It costs Western $0.35 per yard a
> The Columbus Civic Club is planning to put on a 5K race to raise money to build children’s playgrounds. The club has identified the following planning activities and time estimates: Construct the network for this project, identify the c
> The Uptown Bar and Grill serves Rainwater draft beer to its customers. The daily demand for beer is normally distributed, with an average of 18 gallons and a standard deviation of 4 gallons. The lead time required to receive an order of beer from the loc
> The Atlantic Paper Company produces paper from wood pulp ordered from a lumber products firm. The paper company’s daily demand for wood pulp is a constant 8,000 pounds. Lead time is normally distributed, with an average of 7 days and a standard deviation
> The amount of denim used daily by the Western Jeans Company in its manufacturing process to make jeans is normally distributed, with an average of 3,000 yards of denim and a standard deviation of 600 yards. The lead time required to receive an order of d
> Tracy McCoy is the office administrator for the department of management science at Tech. The faculty uses a lot of printer paper, and although Tracy is constantly reordering, paper frequently runs out. She orders the paper from the university central st
> Community Hospital orders latex sanitary gloves from a hospital supply firm. The hospital expects to use 40,000 pairs of gloves per year. The cost to order and to have the gloves delivered is $180. The annual carrying cost is $0.18 per pair of gloves. Th
> The 23,000-seat City Coliseum houses the local professional ice hockey, basketball, indoor soccer, and arena football teams, as well as various trade shows, wrestling and boxing matches, tractor pulls, and circuses. Coliseum vending annually sells large
> The office manager for the Gotham Life Insurance Company orders letterhead stationery from an office products firm in boxes of 500 sheets. The company uses 6,500 boxes per year. Annual carrying costs are $3 per box, and ordering costs are $28. The follow
> The bookstore at State University purchases from a vendor sweatshirts emblazoned with the school name and logo. The vendor sells the sweatshirts to the store for $38 apiece. The cost to the bookstore for placing an order is $120, and the carrying cost is
> The Fifth Quarter Bar buys Old World draft beer by the barrel from a local distributor. The bar has an annual demand of 900 barrels, which it purchases at a price of $205 per barrel. The annual carrying cost is 12% of the price, and the cost per order is
> The I-75 Carpet Discount Store has an annual demand of 10,000 yards of Super Shag carpet. The annual carrying cost for a yard of this carpet is $0.75, and the ordering cost is $150. Thecarpet manufacturer normally charges the store $8 per yard for the ca
> Lindsey Brinton is moving into a rental house near campus at the beginning of the new fall semester at Tech with three friends. Each of the four friends will have a bedroom that they can redecorate as they wish. Lindsey wants to wallpaper her room and pu
> A firm is faced with the attractive situation in which it can obtain immediate delivery of an item it stocks for retail sale. The firm has therefore not bothered to order the item in any systematic way. Recently, however, profits have been squeezed due t
> The Spruce Creek Vegetable Farm produces organically grown greenhouse tomatoes that are sold to area grocery stores. The annual demand for Spruce Creek’s tomatoes is 270,000 pounds. The farm is able to produce 305,000 pounds annually. The cost to transpo
> The Summer Outdoor Furniture Company produces wooden lawn chairs. The annual demand from its store customers is 17,400 chairs per year. The transport and handling costs are $2,600 each time a shipment of chairs is delivered to stores from its warehouse.
> For homework Problem 30 in Chapter 15, the Tech power plant wants to keep a 7- to 10-day sup- ply of coal on hand at all times. It takes 3 days to transport coal by railroad from the coalfields, and the cost of shipping and handling coal by rail is $19.5
> Suntrek is a global manufacturer and supplier of denim jeans to apparel retailers around the world. It purchases baled cotton from its cotton producers in Arkansas, Texas, Georgia, and Mississippi and ships it to its warehouse at the port of Savannah, wh
> Eurotronics is a European manufacturer of electronic components. During the course of a year, it requires container cargo space on ships leaving Hamburg bound for the United States, Mexico, South America, and Canada. Annually, the company needs 160,000 c
> The Union Street Microbrewery makes 1220 Union beer, which it bottles and sells in its adjoining restaurant and by the case. It costs $1,700 to set up, brew, and bottle a batch of the beer. The annual cost to store the beer in inventory is $1.25 per bott
> The A-to-Z Office Supply Company is open from 8:00 A.M. to 6:00 p.M., and it receives 200 calls per day for delivery orders. It costs A-to-Z $20 to send out its trucks to make deliveries. The company estimates that each minute a customer spends waiting f
> The University Bookstore at Tech stocks the required textbook for Management Science 2405. The demand for this text is 1,200 copies per year. The cost of placing an order is $350, and the annual carrying cost is $2.75 per book. If a student requests the
> Seth and Levi Taylor are planning an anniversary party for their parents in December, and they want it to have a holiday theme. They have identified the following planning activities and time estimates: Construct the network for this project, identify th
> Videoworld is a discount store that sells color televisions. The annual demand for color television sets is 400. The cost per order from the manufacturer is $650. The carrying cost is $45 per set each year. The store has an inventory policy that allows s
> Hayes Electronics in Problem 1 assumed with certainty that the ordering cost is $450 per order and the inventory carrying cost is $170 per unit per year. However, the inventory model parameters are frequently only estimates that are subject to some degre
> The Laurel Creek Lawn Shop sells Fastgro Fertilizer. The annual demand for the fertilizer is 270,000 pounds. The cost to order the fertilizer from the Fastgro Company is $105 per order. The annual carrying cost is $0.25 per pound. The store operates with
> The Road King Tire store sells a brand of tires called the Roadrunner. The annual demand from the store’s customers for Roadrunner tires is 3,700. The cost to order tires from the tire manufacturer is $420 per order. The annual carrying cost is $1.75 per
> The Pacific Lumber Company and Mill processes 10,000 logs annually, operating 250 days per year. Immediately upon receiving an order, the logging company’s supplier begins delivery to the lumber mill, at a rate of 60 logs per day. The lumber mill has det
> Craftwood Furniture Company is a U.S.-based furniture manufacturer that offshored all of its actual manufacturing operations to China about a decade ago. It set up a distribution center in Hong Kong, from which the company ships its items to the United S
> In Problem 32 in Chapter 15, the supplier receives shipments of partially completed laptops from its manufacturing facility in Southeast Asia, which has maximum production rate of 200 units per day. Using the forecast of annual demand developed in that p
> Tara, an apparel store, has forecasted a sale of 100,000 meters of dress material for the next year. Its spinning mill can produce 500 meters of materials per day. The cost of setup per production run is C6,000. The store needs to use special materials t
> The Honda dealership at your city forecasted that it could sell around 500 cars in the next year. The annual carrying cost of a car is ¥500,000, and the ordering cost which involves order processing and transportation is ¥300,000. Once an order is made,
> The purchasing manager for the Atlantic Steel Company must determine a policy for ordering coal to operate 12 converters. Each converter requires exactly 5 tons of coal per day to operate, and the firm operates 360 days per year. The purchasing manager h
> A farm owner is going to erect a maintenance building with a connecting electrical generator and water tank. The activities, activity descriptions, and estimated durations are given in the following table: (Notice that the activities are defined not by n
> A furniture store produces tables and doors and sells them through its outlets across the country. The wood working machines are first set for producing tables and the produced tables are stocked for meeting the customers’ demand. Once enough tables are
> The Wood Valley Dairy makes cheese to supply to stores in its area. The dairy can make 250 pounds of cheese per day (365 days per year), and the demand at area stores is 180 pounds per day. Each time the dairy makes cheese, it costs $125 to set up the pr
> Hayes Electronics stocks and sells a particular brand of personal computer. It costs the firm $450 each time it places an order with the manufacturer for the personal computers. The cost of carrying one PC in inventory for a year is $170. The store manag
> Eurotronics manufactures components for use in small electronic products such as computers, CD players, and radios at plants in Belgium, Germany, and France. The parts are transported by truck to Hamburg, where they are shipped overseas to customers in M
> Emily Andrews has invested in a science and technology mutual fund. Now she is considering liquidating and investing in another fund. She would like to forecast the price of the science and technology fund for the next month before making a decision. She
> The Bayside Fountain Hotel is adjacent to County Coliseum, a 24,000-seat arena that is home to the city’s professional basketball and ice hockey teams and that hosts a variety of concerts, trade shows, and conventions throughout the yea
> The Victory Plus Mutual Fund of growth stocks has had the following average monthly price for the past 10 months: Compute the exponentially smoothed forecast with a = .40, the adjusted exponential smoothing fore- cast with a = .40 and b = .30 and the lin
> The dean of the college of business at Tech has initiated a fund-raising campaign. One of the selling points he plans to use with potential donors is that increasing the college’s private endowment will improve its ranking among all bus
> The manager of the Bayville police department motor pool wants to develop a forecast model for annual maintenance on police cars, based on mileage in the past year and age of the cars. The following data have been collected for eight different cars: a. U
> In Problem 42, Infoworks believes its printer sales are also related to the average price of its printers. It has collected historical data on average printer prices for the past 10 years, as follows: a. Using Excel, develop the multiple regression equat
> Construct a Gantt chart for the following set of activities, and indicate the project completion time:
> Tech administrators believe their freshman applications are influenced by two variables: tuition and the size of the applicant pool of eligible high school seniors in the state. The following data for an 8-year period show the tuition rates (per semester
> The State of Virginia has instituted a series of standards of learning (SOL) tests in math, history, English, and science that all high school students must pass with a grade of 70 before they are allowed to graduate and receive their diplomas. The schoo
> The admission data for freshmen at Tech during the past 10 years are as follows: Tech’s admission objective is a class of 5,000 entering freshmen, and Tech wants to forecast the percentage of offers it will likely have to make to achiev
> The Port of Savannah is considering an expansion of its container terminal. The port has experienced the following container throughput during the past 12 years, expressed as TEUs (i.e., 20-foot equivalent units, a standard unit of measure for containers
> The Valley United Soccer Club has boys’ and girls’ travel soccer teams at all age levels up to 18 years. The club has been successful and grown in popularity over the years; however, an obstacle to its continued growth
> The Wellton Fund is a balanced mutual fund that includes a mix of stocks and bonds. Following are the year-end share prices of the fund and Dow Jones Industrial Average (DJIA) for a 20-year period: Develop a linear regression model for these data and for
> A cooking oil distributor distributes oil to major supermarkets in the region. Though a person’s daily consumption of oil seems to be almost the same, the distributor’s demand for oil fluctuates every month. The distri
> In Problem 48, one of the new products in the GreenClean line that Klorax is ready to introduce is an all-purpose cleaner, and Klorax is attempting to forecast what demand might be like 5 years into the future. However, it has no historical demand data t
> To take advantage of the burgeoning public interest in sustainability, Klorax has developed a non- synthetic line of natural cleaning products called GreenClean. One of the first sustainable products Klorax introduced was a natural cold-water detergent.
> The busiest time of the day at the Taco Town fast-food restaurant is between 11:00 A.M. and 2:00 p.M. Taco Town’s service is very labor dependent, and a critical factor for providing quick service is the number of employees on hand duri
> Liu and Fong is a global supplier of denim jeans for apparel companies around the world. Its supply chain includes cotton production in the United States, fabric manufacturing in Southeast Asia and the Pacific Rim; jeans manufacturing in the Far and Midd
> The consumer loan department at Central Union Bank and Trust wants to develop a forecasting model to help determine its potential loan application volume for the coming year. Because adjust- able-rate home mortgages are based on government long-term Trea
> Develop an adjusted exponential smoothing forecast model (a = .40 and b = .40) for the data in Problem 44 to forecast seat occupancy and compare its accuracy with the seasonally adjusted model developed in (a).
> Arrow Air is a regional East Coast airline that has collected data for the percentage of avail- able seats occupied on its flights for four quarters—(1) January–March, (2) April–June, (3) Julyâ&
> Develop an exponential smoothing model with a = .30 for the data in Problem 42 to forecast printer demand in year 11 and compare its accuracy to the linear trend line forecast developed in (a).
> Infoworks is a large computer discount store that sells computers and ancillary equipment and software in the town where State University is located. Infoworks has collected historical data on computer sales and printer sales for the past 10 years, as fo
> The Gametime Hat Company manufactures baseball caps that have various team logos in an assortment of designs and colors. The company has had monthly sales for the past 24 months as follows: Develop a forecast model using the method you believe best, and
> Apperson and Fitz is a chain of clothing stores that caters to high school and college students. It publishes a quarterly catalog and operates a Web site that features provocatively attired males and females. The Web site is very expensive to maintain, a
> The chairperson of the department of management at State University wants to forecast the number of students who will enroll in production and operations management (POM) next semester to determine how many sections to schedule. The chair has accumulated
> Employees at Precision Engine Parts Company produce parts according to exact design specifications. The employees are paid according to a piece-rate system, wherein the faster they work and the more parts they produce, the greater their chances for month
