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Question: Tri-State Bank is investigating the processing


Tri-State Bank is investigating the processing time for loan applications. Samples were taken for 25 random days from four branches. These data can be found in the worksheet C17 Excel P41 Data in MindTap. Construct control charts using the Excel template x&R-Chart. Verify the Excel calculations of the control limits by hand using the formulas in the chapter. Does the process appear to be in statistical control? Why or why not?


> Define interlinking. Why is it important?

> Define productivity and operational efficiency.

> Define measurement briefly.

> What are the implications of Marriott’s quote “Happy employees create happy customers”? What does this mean for human resource management?

> Select one of the following challenges facing OM: customers, technology, workforce, globalization, sustainability, or optimizing supply chains, and explain its short- and long-term impact.

> Summarize the historical development of OM.

> Interview a production manager at a nearby goods- producing company to determine how the company plans its production for fluctuating demand. What approaches does the company use?

> Bass Fishing, Inc. assembles fishing nets with aluminum handles in an assembly line using four workstations. Management wants an output rate of 200 nets per day using a 7.5-hour workday. The sum of the task times is 7.00 minutes/net. a. What is the c

> Describe the importance of data and business analytics in operations and supply chain management?

> What percent of U.S. economy jobs are in the service sector?

> Define sustainability and explain its three dimensions.

> Contrast the three different frameworks for describing value chains.

> What is a distribution center?

> Define and explain the three major types of processes in business?

> Explain the difference between value chains and supply chains.

> Define “biztainment” and provide an example.

> What is a peripheral good or service? Provide some examples.

> Provide an argument for or against adopting a chase strategy for a major airline call center.

> Describe a customer benefit package.

> Peter’s Paper Clips uses a three-stage production process: cutting wire to prescribed lengths, inner bending, and outer bending. The cutting process can produce at a rate of 200 pieces per minute; inner bending, 160 pieces per minute; and outer bending,

> Founded in 1839 to facilitate the growth and ease of commerce, the Greater Cincinnati Chamber of Commerce (www.cincinnatichamber.com) is a membership organization of approximately over 7,000 businesses and organizations in the region that surrounds Cinci

> How can an organization increase value to its customers?

> Use the Excel template VLC to find the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $75 per visit, the frequency of repurchase is six times per year, the contribution margin is 10 percent, and the av

> Customers call a call center to make room reservations for a small chain of 42 motels located throughout the southwestern part of the United States. Business analytics is used to determine how and if the following performance metrics are related: time

> A key hospital outcome measure of clinical performance is length of stay (LOS); that is, the number of days a patient is hospitalized. For patients at one hospital with acute myocardial infarction (heart attack), the length of stay over the past four ye

> A computer manufacturer currently has a 20 percent customer defection rate. Their accounting department estimates the incremental contribution to profit and overhead as 35 percent. Customers purchase computers every four years at an average cost of $1,20

> The manager at Raphael's Four-Star Italian Restaurant wants to set the price of their premiere entrée. He estimates a loyal customer is worth $1,000. Based on survey data, the customer defection rate is 0.22, the repurchase frequency is once a month, and

> A retail store sells a popular cosmetic called Devine and the store manager was given $100,000 by the corporate office to improve store performance any way she thinks best. The “base case” information is a price of $3

> Research and write a short paper (two pages maxi- mum) describing how organizations use aggregate planning options in Exhibit 14.3.

> Use the Excel template VLC to estimate the value of a loyal customer for a loyal Craftsman tool buyer? Assume the contribution margin is 0.25, the purchase price is $300 for a certain set of tools, and the repurchase frequency is every 5 years, and the c

> What is a grocery store’s contribution margin (CM) if the average purchase price is $86.55 per visit, the customer defection rate is 0.10, the VLC is $1,800, and 52 purchases are made per year? Use a trial-and-error approach with the Excel template VLC t

> What is the average defection rate for grocery store shoppers in a local area of a large city if they spend $45 per visit, shop 52 weeks per year, the grocery store has a 4 percent gross margin, and the value of a loyal customer is estimated at $3,500 pe

> Refer to Exhibit 7.7, the restaurant value stream map, and recomputed the total value-added and non-value-added time and cost given the following new information. If a restaurant uses iPads to place orders and notify waiters when the customer’s order is

> Using the base case data in question 46, use the Excel template VLC to analyze how the value of a loyal customer (VLC) will change if the average customer defection rate varies between 15 and 40 percent (in increments of 5 percent) and the frequency of r

> A university currently has a recycling program for paper waste. The fixed cost of running this program is $15,000 per year. The variable cost for picking up and disposing of each ton of recyclable paper is $40. If the work is outsourced to a recycling

> The historical sales for a certain model of a single serve coffee maker in units is: January, 26; February, 21; March, 20; April, 23; May, 17; and June, 20. Using a two-month moving average, determine the forecast for July using the Moving Average Excel

> The Costello Music Company has been in business five years. During that time, its sales of electric organs has grown from 12 units to 76 units per year. Fred Costello, the firm's owner, wants to forecast next year's organ sales. The historical data follo

> Canton Supplies, Inc., is a service firm that employs approximately 100 people. Because of the necessity of meeting monthly cash obligations, the Chief Financial Officer wants to develop a forecast of monthly cash requirements. Because of a recent change

> Use the Excel template Gantt Chart to construct a Gantt chart for the early-start schedule found in problem 41, Rozales Manufacturing Co. Explain and trace the project’s critical path(s).

> Identify a goods-producing or service-providing organization and discuss how it might make aggregate planning decisions using the variables described in Exhibit 14.3.

> Use the Excel template Gantt Chart to construct an early-start Gantt chart for the computer-system installation project described in problem 39. As a project manager, where would you focus your attention, given your analysis?

> Use the Excel template Gantt Chart to develop a Gantt chart for the early start schedule for the wedding project in problem 36. Explain and trace the project’s critical path(s).

> The worksheet C17 Excel P47 Data in MindTap provides sample times in hours for processing and shipping orders from a web-based retailer. The retailer advertises that orders are shipped within four hours of receipt. What is the capability of the process t

> Use the data from the machining process in Problem 40 (worksheet C17 Excel P40 Data in MindTap) to calculate Cp, Cpl, Cpu, and Cpk, assuming that the specifications are 3.75 6 1.25. Interpret the results for the manager of this process.

> Dot’s Restaurant must decide between two technology and processes in their kitchen. They only serve dinner after 4 pm on a small island called Sanibel. The restaurant is open 250 days per year. Dot and her husband, Ham, are retired. They became bored pla

> A mail-order prescription drug vendor measured the number of errors per standard order being picked in their distribution center. Data can be found in the worksheet C17 Excel P45 Data in MindTap. Construct a c-chart and interpret the results. What practi

> Data showing the number of errors per thousand lines of code for a software development project are given in the worksheet C17 Excel P44 Data in MindTap. Construct a c-chart and interpret the results.

> An Internet service provider (ISP) measures the proportion of peak period time when a customer is likely to receive busy signals. Data on the number of busy signals received from samples of 500 calls over a 30-day period can be found in the worksheet C17

> Eighty insurance claim forms are inspected daily for 25 working days, and the number of forms with errors are recorded in the worksheet C17 Excel P42 Data in MindTap. Construct a p-chart using the Excel template p-Chart. Verify the Excel calculations of

> Discuss some examples of real-life organizations that use demand management as a resource planning strategy.

> Thirty samples of size 3, available in the worksheet C17 Excel P40 Data in MindTap were taken from a machining process over a 15-hour period. Construct control charts using the Excel template x&R-Chart. Verify the Excel calculations of the control limits

> Use the Excel Pareto template to investigate the quality losses in a paper mill shown below. What conclusions do you reach?

> One industry expert stated that software today has six errors for every 1,000 lines of code. Assuming that there is only one opportunity to make an error for each line of code, at what sigma level is the coding processing operating? If eight errors are d

> The following cost-of-quality data were collected at the installment loan department of the Kenney Bank. Classify these data into the appropriate cost-of-quality categories, and analyze the results with a Pareto chart (use the Excel Pareto template). Wha

> Analysis of customer complaints at an e-commerce retailer revealed the following: 1. Prepare tickler file; review and follow up on titles, insurance, second meetings: $ 155.75 Use the Excel Pareto template to construct a Pareto chart, and discuss the con

> The police department of a major city needs a faster process to do criminal background checks. They eliminated several vendors and their products because they required to much retraining and major changes in search process steps. The police department re

> Over the last year, 1,200 injections were administered at a clinic. Quality is measured by the proper amount of dosage as well as the correct drug. In nine instances, the incorrect amount was given, and in two cases, the wrong drug was given. Use the Six

> A bank has set a standard that mortgage applications be processed within eight days of filing. If, out of a sample of 1000 applications, 75 fail to meet this requirement, what is the epmo metric, and how does it compare with a six-sigma level? Use the Si

> The worldwide rate of baggage mishandling reported by SITA (Société Internationale de Télécommunications Aéronautiques) in 2017 was 5.73 per 1,000 passengers. If the average number of checked bags per passenger is assumed to be 1.3, use the Six Sigma Exc

> Nighthawk Airlines measured their numbers of lost bags in one month and found that they had lost 35 bags for 10,000 customers. If the average number of bags per customer is 1.2, use the Six Sigma Excel template to find at what sigma level is the airline

> Research what type(s) of reverse logistics program(s) your city, county, or state government supports and write a short paper describing how it works (and a simple flowchart if possible). What percentage of total waste ends up in a landfill? (maximum of

> An attorney’s office operates with a single copier. At the beginning of a particular day the following jobs are waiting for processing. All jobs must be distributed to clients or in court by 9:00 a.m., and it is now 7:30 a.m. Regular si

> In this chapter, we noted that the EDD rule minimizes the maximum job tardiness and maximum lateness, while the SPT rule minimizes the average flowtime. However, neither of these rules minimize the average lateness or average tardiness. Use the Excel Seq

> Eight jobs have arrived in the following order: Find and compare the performance measures for the following sequencing rules using the Excel Sequencing template: a. Process in the order they have arrived b. Shortest processing time c. Earliest due date

> An insurance claims work area has five claims waiting for processing as follows: Use the Excel Sequencing template to find the average flowtime, average and maximum tardiness, and average lateness for the following sequences: SPT sequence, EDD sequence,

> A manufacturing firm makes custom orthopedic parts for human knee, hip, and shoulder replacements. Because shipping the custom part(s) prior to the scheduled surgery date is essential, compare the SPT and EDD rules, and recommend the best sequencing rule

> A bank’s mortgage department must process the following six jobs to maximize client satisfaction. What sequencing rule should you use? For the rule you selected, find the best sequence using the Excel Sequencing template.

> A college textbook publisher sells a certain e-book for $40.00. For the current process, the publisher has fixed cost of $355,000 and a variable cost per book of $30.00. a. What is the break-even quantity for this book? b. If the variable cost increased

> Four blood samples have arrived in your laboratory with the following information: Use the Excel Sequencing template for the following: a. Sequence the jobs using the SPT rule. b. Sequence the jobs using the EDD rule. c. Compare average flow time, averag

> Tony’s Income Tax Service personnel can estimate the time required to complete customers’ tax returns by using the following time standards assuming all information is available: One morning, five customers are waiting

> Mike Reynolds has four assignments due in class tomorrow, and his class times are as follows. Each class lasts one hour, and Mike has no other classes. It is now midnight, and Mike estimates that the finance, OM, marketing, and psychology assignments wil

> Research and find a physical good that is biodegradable or carbon neutral. Be prepared to present your findings to the class in a two- to five-minute discussion.

> An earth moving machine had five jobs in the same area it must complete as soon as possible. Sequence the jobs using (a) FCFS order 1-2-3-4-5, and (b) the SPT rule. Use the Sequencing Excel template to compute performance measures for both sequences. W

> David Chris is running the season’s final basketball tournament for Youth Boosters. He is trying to schedule the referee crews for each game. The following table shows the number of times in the past that each crew has refereed a game f

> The minimum number of part-time employees needed at a quick service restaurant for each two-hour block is shown in the following table. Part time college students work four-hour shifts (e.g., 7–11 a.m., 9 a.m. to 1 p.m., and so on, star

> For the scenario described in section 15.2c, suppose the number of employees needed for each hour are as shown in the following table. Develop and solve the optimization model on a spreadsheet and use Solver to find the number of employees to assign to t

> Implement the linear optimization model developed for the Silver Star Bicycle Company in Problem 30 in in a spreadsheet and use Excel Solver (see Supplement D) to determine a production plan that minimizes production and inventory costs and satisfies the

> Implement the linear optimization model developed for Leisure Furniture in Problem 29 in a spreadsheet and use Excel Solver (see Supplement D) to determine the optimal production quantities of each type of chairs to produce to maximize revenue.

> Implement the linear optimization model developed for Metal Fabricators, Inc. in Problem 28 in a spreadsheet and use Excel Solver (see Supplement D) to find a minimum cost aggregate production plan.

> Given the information in Problem 34, what do you recommend if Worthington Machining can buy folded metal panels of identical size at a price of $27.25 per panel?s

> Kings Appliance Manufacturers makes toasters and wants to evaluate a level strategy against a chase strategy. The quarterly demand forecasts are: Q1—12,000, Q2—15,000, Q3—18,000, and Q4—33,000. The beginning finished goods inventory level is 3,000 units.

> Use the Excel template Aggregate Planning to try to find the best production strategy for the Wester- beck Company in Problem 44 to minimize the total cost. How much can you improve on the level and chase demand strategies?

> The kid almost died! He’s a diabetic! How did that patient get the wrong food tray?” said Bonnie Blaine, director of hospital operations, to Drew Owensboro, the director of dietary services. Bonnie Blaine, a woman in h

> The Westerbeck Company manufactures several models of automatic washers and dryers. The projected requirements over the next year for their washers are shown in the table below. Current inventory is 100 units. Current capacity is 960 units per month. The

> Chapman Pharmaceuticals, a large manufacturer of drugs, has this aggregate demand forecast (in thousands of liters) for a liquid cold medicine. The firm has a normal production rate of 90 thousand liters per month, and the initial inventory is 100 thousa

> Fans-and-More, Inc. assemble controllers for ceiling fans. Exhibit 13.16 provides information on a plastic case for fan infrared controllers produced by one of their suppliers, Byannan, Inc. The plastic case is made using injection molding machines. Byan

> Given the information in Exhibit 13.15 and a budget of $5,000,000, what is the most that Loyola Machining can pay for each manufactured unit? Assume one year is 250 working days and the order size is 6,500 units. Use the Total Supply Chain Cost Excel tem

> A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown in Exhibit 13.14. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in

> Given the information in Exhibit 13.13 for Rockland, Inc., use the Total Supply Chain Cost Excel template to compute the costs associated with the supply chain. The order quantity is 20,000 units, and the supply chain operates 250 days a year. What if th

> Given the information in Exhibit 13.12 for the Edwin Company, use the Total Supply Chain Cost Excel template to find the costs associated with the supply chain. The order size is Q 5 2,500 units and the supply chain operates 250 days a year.

> Daniel’s Auto Parts is a small wholesale distributor of automobile after-market items. For one particular part, an analysis of historical sales resulted in the distribution of daily demand shown below: When a new supply of the part is o

> Worthington Machining must decide whether to purchase Process A with specialized metal folding equipment needing two employees to operate it or Process B with general purpose folding equipment requiring five employees. Process A requires a fixed cost of

> Use the Inventory Simulation Excel template in MindTap for the Scott Audio Systems example in section 12-7 to determine the best order quantity- reorder point combination with the smallest average cost/day for all combinations of reorder points five, sev

> Research and find a good or service supply chain with a quantifiable carbon footprint. Write a short paper (maximum of two typed pages) on the topic, and if possible, how the carbon footprint was computed. Cite your sources.

> The J&B Card Shop sells calendars featuring a different colonial picture for each month. The once-a-year order for each year’s calendar ar- rives in September. From past experience the September-to-July demand for the calendars can be approximated by a n

> For Suzie’s Sweetshop scenario in problem 77, suppose that demand is normally distributed with a mean of 75 and a standard deviation of eight. How will her optimal order quantity change? Use the Single Period Inventory Excel template in MindTap to find y

> Suzie’s Sweetshop makes special boxes of Valentine’s Day chocolates. Each costs $15 in material and labor and sell for $30. After Valentine’s Day, Suzie reduces the price to $10.00 and sells any remaining boxes. Historically, she has sold between 50 and

> The Greyhound Company is considering changing its current inventory-control system for electronic picture frames. The information regarding one e-frame is given below: Use the FPS Safety Stock Excel template in MindTap to compute T and M for a fixed-peri

> Find the optimal order quantity for an annual demand of 10,000 units, a cost per unit of $3, an inventory-carrying charge rate of 20 percent, and an order cost of 32 percent. For orders between 100 and 1999 units, the supplier gives a two percent discoun

> A manufacturer procures a subassembly from a supplier. The annual demand is 120,000 units, cost per unit is $6, inventory-carrying charge rate is 10 percent, and the order cost is $200. For orders between 10,000 but less than 30,000, a three per- cent di

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