A car manufacturer supplies brake pads from two main suppliers. Historical quality information indicates that for Supplier 1, there is a 65% probability that a given lot would contain 3% defects, 25% portability that a given lot would contain 2% defects, and a 10% probability that a given lot would contain 1% defects. As for Supplier 2, there is a 15% probability that a given lot would contain 3% defects, 35% portability that a given lot would contain 2% defects, and a 50% probability that a given lot would contain 1% defects. The cost per pad from supplier 1 is $32 while the cost per pad from supplier 2 is $38. If the company is about to place an order for 20,000 pads, use decision trees to decide on which supplier to select.
> The service times for a new data entry clerk have been measured and sequentially recorded as shown below: a) What is the learning curve rate, based on this information? b) Using an 85% learning curve rate and the above times, estimate the length of time
> A manufacturer of special petrochemical equipment with a proven track record of 80% learning has estimated that it spent 12,000 labour-hours at $25.00 per labour-hour on the production of the first unit of a customized equipment. However, the company has
> Girish Shambu and William Reisel are teammates at a discount store; their new job is assembling bicycles for customers. Assembly of a bike has a learning rate of 90%. They forgot to time their effort on the first bike, but spent 4 hours on the second set
> As the estimator for Rajendra Tibrewala Enterprises, your job is to prepare an estimate for a potential customer service contract. The contract is for the service of diesel locomotive cylinder heads. The shop has done some of these in the past on a spora
> Temple Trucking Co. just hired Ed Rosenthal to verify daily invoices and accounts payable. He took 9 hours and 23 minutes to complete his task on the 1st day. Prior employees in this job have tended to follow a 90% learning curve. How long will the task
> Richard Dulski’s firm is about to bid on a new radar system. Although the product uses new technology, Dulski believes that a learning rate of 75% is appropriate. The first unit is expected to take 700 hours, and the contract is for 40 units. a) What is
> If it took Boeing 28,718 hours to produce the eighth 787 jet and the learning-curve factor is 80%, how long did it take to produce the tenth 787?
> Regional Power owns 25 small power generating plants. It has contracted with Genco Services to overhaul the power turbines of each of the plants. The number of hours that Genco billed Regional to complete the third turbine was 460. Regional pays Genco $6
> Sandwiched between mass-market cruise line players such as Carnival and Disney, and luxury cruise lines such as Crystal Cruises, Celebrity is making a name for itself in the “premium” market, offering both an upscale e
> Central Electronics Corp. produces semiconductors and has a learning curve of .7. The price per bit is 100 Millicent’s when the volume is .7 × 1012 bits. What is the expected price at 1.4 × 1012 bits? What is the expected price at 89.6 × 1012 bits?
> Using the data from Problem E.14, how long will it take to complete the 12th plane? The 15th plane? How long will it take to complete planes 12 through 15 inclusive? At $40 per hour, what can Alwan, as purchasing agent, expect to pay for planes 12 throug
> Suad Alwan, the purchasing agent for Dubai Airlines, is interested in determining what he can expect to pay for airplane number 4 if the third plane took 20,000 hours to produce. What would Alwan expect to pay for plane number 5? Number 6? Use an 85% lea
> The better students at Providence Assessment Center have an 80% learning curve and can do a task in 20 minutes after just six times. You would like to weed out the weak students’ sooner and decide to evaluate them after the third unit. How long should th
> Providence Assessment Center screens and trains employees for a computer assembly firm in Boston. The progress of all trainees is tracked, and those not showing the proper progress are moved to less demanding programs. By the tenth repetition trainees mu
> D. Shimshak Systems is installing networks for Advantage Insurance. The first installation took 46 labor-hours to complete. Estimate how long the 4th and the 8th installations will take for each of the following learning rates: a) 92% b) 84% c) 77%
> The first vending machine that William Kane, Inc., assembled took 80 labor-hours. Estimate how long the fourth machine will require for each of the following learning rates: a) 95% b) 87% c) 72%
> Susan Sherer, an IRS auditor, took 45 minutes to process her first tax return. The IRS uses an 85% learning curve. How long will the: a) 2nd return take? b) 4th return take? c) 8th return take?
> An equipment manufacturer wants to decide on the location of a new facility. Currently, the company has a plant in Egypt and a plant in Turkey. The company is deciding where to build a new plant—Morocco or United Arab Emirates. Use the
> The Donna Mosier Clothing Group owns factories in three towns (W, Y, and Z), which distribute to three retail dress shops in three other cities (A, B, and C). The following table summarizes factory availabilities, projected store demands, and unit shippi
> Frito-Lay has flourished since its origin—the 1931 purchase of a small San Antonio firm for $100 that included a recipe, 19 retail accounts, and a hand-operated potato ricer. The multi-billion- dollar company, headquartered in Dallas, now has 41 products
> In Solved Problem C.1, Williams Auto Top Carriers proposed opening a new plant in either New Orleans or Houston. Management found that the total system cost (of production plus distribution) would be $20,000 for the New Orleans site. What would be the to
> A commercial bakery in Dubai has three production lines that supply baked goods to four stores. The cost of shipment from each production line to each store (in AED per 1,000 pieces) is shown in the table below. How many units should be shipped from each
> The following table is the result of one or more iterations. a) Complete the next iteration using the stepping-stone method. b) Calculate the “total cost” incurred if your results were to be accepted as the final solut
> Consider the transportation table below. The solution displayed was obtained by performing some iterations of the transportation method on this problem. What is the current cost of the plan that would be obtained by performing one more iteration of the s
> Refer to the table that follows. a) Use the northwest-corner method to find an initial feasible solution. What must you do before beginning the solution steps? b) Use the intuitive lowest-cost approach to find an initial feasible solution. Is this approa
> Consider the transportation table at right. Unit costs for each shipping route are in dollars. What is the total cost of the basic feasible solution that the intuitive lowest-cost method would find for this problem?
> The following table presents cost, capacity, and demand data for a transportation problem in Jinfeng Yue’s furniture company. Set up the appropriate transportation table and find the initial solution using the northwest-corner rule.
> For the following Gregory Bier Corp. data, find the starting solution and initial cost using the northwest-corner method. What must you do to balance this problem?
> A juice manufacturer produces juice at plants in Cairo, Alexandria, and Aswan. These are sent to regional distributors in Giza, Tanta, and Sohag. The shipping costs vary, and the company would like to find the least-cost way to meet the demands at each o
> Using the data from Problem C.10 and the unit production costs listed in the following table, show which locations yield the lowest cost.
> Zhou Bicycle Company (ZBC), located in Seattle, is a wholesale distributor of bicycles and bicycle parts. Formed in 1981 by University of Washington Professor Yong-Pin Zhou, the firm’s primary retail outlets are located within a 400-mil
> Randa’s Bakery, Egypt, is considering adding a fourth plant to its three existing facilities in 6th of October, 10th of Ramadan, and Obour. Both Giza and Mokatam are being considered. Evaluating only the transportation costs per unit as
> Find an initial solution to the following transportation problem. a) Use the northwest-corner method. What is its total cost? b) Use the intuitive lowest-cost approach. What is its total cost? c) Using the stepping-stone method, find the optimal solution
> Zhu Manufacturing is considering the introduction of a family of new products. Long-term demand for the product group is somewhat predictable, so the manufacturer must be concerned with the risk of choosing a process that is inappropriate. Faye Zhu is VP
> Leah Johnson, director of Urgent Care of Brookline, wants to increase capacity to provide low-cost flu shots but must decide whether to do so by hiring another full-time nurse or by using part-time nurses. The following table shows the expected costs of
> The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Robert Klassan’s print shop: The probability of low demand is 0.4, whereas the probability of high demand is 0.6
> The Adam Smith Trading Company wants to increase its markets and conduct business in more countries. It has done a pre-study about costs for opening new offices and approximate yearly profits (all numbers in thousands euro). The following table summarize
> Howard Weiss, Inc., is considering building a sensitive new radiation scanning device. His managers believe that there is a probability of 0.4 that the ATR Co. will come out with a competitive product. If Weiss adds an assembly line for the product and A
> A large hypermarket based in Kuwait is considering different plans for expansion. The management has identified three possible alternatives: build two new stores, build one new store, or do nothing. The expected payoff will depend on future demand which
> Chris Suit is an administrator for Lowell Hospital. She is trying to determine whether to build a large wing on the existing hospital, a small wing, or no wing at all. If the population of Lowell continues to grow, a large wing could return $150,000 to t
> Bakery Products is considering the introduction of a new line of pastries. In order to produce the new line, the bakery is considering either a major or a minor renovation of its current plant. Bill Wicker, head of operations, has developed the following
> Arnold Palmer Hospital, one of the nation’s top hospitals dedicated to serving women and children, is a large business with more than 2,000 employees working in a 431-bed facility totalling 676,000 square feet in Orlando, Florida. Like many other hospita
> Andrew Thomas, a sandwich vendor at Hard Rock Cafe’s annual Rockfest, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd): The probabilities associated with the sta
> In the TV show and game “Who Wants to be a Millionaire?” the participants get four choices for each question and the questions get tougher and tougher the longer a participant stays in the game. A participant can decid
> The Machine Shop is a retailer of tools for carpenters. Their top selling product is a revolutionary saw, which sells for €999. However, they are short on cash and try to hold the storage as short as possible. A customer interested in the saw buys with a
> A construction company wants to decide on whether to bid for a new project or not. If the company decides to bid, there is a KWD 10,000 cost associated with preparing the preliminary proposal. The probability that the company will be shortlisted for the
> The pharmaceutical company Neuronome is in late clinical phase of a new cancer treatment. However, their competitor Immunoneuron is also in the late clinical phase of a pharmaceutical for the same treatment. They have to make a decision about increasing
> A large investment firm wants to decide on how to invest one million dollars. The board is considering three options: invest in stocks, invest in T-Bills, or do nothing. There are two possibilities for the market: favourable and unfavourable. The CEO has
> Abdulla wants to decide on the best route to take for work from two possible routes: A and B. The time taken to work on each route depends on the traffic. If Abdulla takes route A, it will take him 25 minutes if the traffic is moderate and 45 minutes if
> Ahmed Saif is the manager of a large agriculture firm that owns 100,000 acres in the new valley project of Toshka in the Western desert of Egypt. He now needs to decide on which one of three crops to grow during the upcoming summer season. Ahmed has obta
> Al-Andalus retail store in Saudi Arabia wants to decide on whether to build a large or a small store in the city of Dammam. The expected net present value of the return per month of the decision will depend on the future demand, which is expected to be e
> Like most other manufacturers, Regal Marine finds that it must spend a huge portion of its revenue on purchases. Regal has also found that the better its suppliers understand its end users, the better are both the supplier’s product and Regal’s final pro
> Even though independent gasoline stations have been having a difficult time, Ian Langella has been thinking about starting his own independent gasoline station. Ian’s problem is to decide how large his station should be. The annual retu
> Given the following conditional value table, determine the appropriate decision assuming that each state of nature has an equal likelihood of occurring:
> The following payoff table provides profits based on various possible decision alternatives and various levels of demand: The probability of low demand is 0.4, whereas the probability of medium and high demand is each 0.3. a) What is the highest possible
> Given the following conditional value table, determine the appropriate decision under uncertainty using a) maximax b) maximin c) equally likely
> The city of Belgrade, Serbia, is contemplating building a second airport to relieve congestion at the main airport and is considering two potential sites, X and Y. Hard Rock Hotels would like to purchase land to build a hotel at the new airport. The valu
> The organizing company of the famous rapper Sean Paul’s concert in Dubai has decided to print shirts to be sold in the event. The company decision is to either print 5,000, 10,000, or 20,000 shirts. The expected profit from selling the
> Palmer Jam Company is a small manufacturer of several different jam products. One product is an organic jam that has no preservatives, sold to retail outlets. Susan Palmer must decide how many cases of jam to manufacture each month. The probability that
> A news vendor wants to decide on the number of magazines to order for the next day. Based on his experience, he believes that demand for the magazine would range from 400–900 based on the following probability distribution table: Each m
> Consider the following decision table, which Joe Blackburn has developed for Vanderbilt Enterprises: Which decision alternative maximizes the expected value of the payoff?
> Given the following conditional value table, determine the appropriate decision under uncertainty using: a) Maximax b) Maximin c) Equally likely
> Darden Restaurants, owner of popular brands such as Olive Garden and LongHorn Steakhouse, requires unique supply chains to serve more than 300 million meals annually. Darden’s strategy is operations excellence, and Senior VP Jim Lawrence’s task is to ens
> On any given day, Celebrity Cruises, Inc. has tens of thousands of passengers at sea on more than a dozen spectacular ships, spanning 7 continents and 75 countries. With this level of capital investment along with the responsibility for the happiness and
> A medical control system has three components in series with individual reliabilities (R1, R2, R3) as shown: What is the reliability of the system?
> Merrill Kim Sharp has a system composed of three components in parallel. The components have the following reliabilities: R1 = 0.90, R2 = 0.95, R3 = 0.85 What is the reliability of the system?
> What is the overall reliability that bank loans will be processed accurately if each of the five clerks shown in the chart has the reliability shown? Hint: The three paths are done in parallel, followed by an additional independent step.
> What is the reliability of the following parallel production process? R1 = 0.95, R2 = 0.90, R3 = 0.98.
> A manufacturer of disk drives for notebook computers wants an MTBF of at least 50,000 hours. Recent test results for 10 units were one failure at 10,000 hours, another at 25,000 hours, and two more at 45,000 hours. The remaining units were still running
> Robert Klassen Manufacturing, a medical equipment manufacturer, subjected 100 heart pacemakers to 5,000 hours of testing. Halfway through the testing, 5 pacemakers failed. What was the failure rate in terms of the following? a) Percentage of failures? b)
> A new aircraft control system is being designed that must be 98% reliable. This system consists of three components in series. If all three of the components are to have the same level of reliability, what level of reliability is required?
> Given the probabilities that follow for Ronny Richardson’s print shop, find the expected breakdown cost. The cost per breakdown is $10.
> The fire department has a number of failures with its oxygen masks and is evaluating the possibility of outsourcing preventive maintenance to the manufacturer. Because of the risk associated with a failure, the cost of each failure is estimated at $2,000
> David Hall, chief of the maintenance department at Mechanical Dynamics, has presented you with the following failure curve. What does it suggest?
> Everyone—managers and hourly employees alike—who goes to work for Hard Rock Cafe takes Rock 101, an initial 2-day training class. The Hard Rock value system is to bring a fun, healthy, nurturing environment into the Hard Rock Cafe culture. This initial c
> A testing process at Boeing Aircraft has 400 components in series. The average reliability of each component is 99.5%. Use Figure 17.2 to find the overall reliability of the whole testing process. Data from Figure 17.2:
> Each breakdown of a graphic plotter table at Airbus Industries costs $50. Find the expected daily breakdown cost, given the following data:
> What are the expected number of yearly breakdowns for the power generator at Orlando Utilities that has exhibited the following data over the past 20 years?
> You have a system composed of a serial connection of four components with the following reliabilities: What is the reliability of the system?
> The credit card issuing process at Atlanta Bank’s VISA program consists of 10 steps performed in series by different bank employees. The average reliability of each employee is 98%. Use Figure 17.2 in the text to help manager Yusen Xia
> A typical retail transaction consists of several smaller steps, which can be considered components subject to failure. A list of such components might include: Let the eight probabilities of success be .92, .94, .99, .99, .98, .97, .95, and .96. What is
> As VP for operations at Méndez-Piñero Engineering, you must decide which product design, A or B, has the higher reliability. B is designed with backup units for components R3 and R4. What is the reliability of each design?
> Rick Wing, salesperson for Wave Soldering Systems, Inc., has provided you with a proposal for improving the temperature control on your present machine. The machine uses a hot-air knife to cleanly remove excess solder from printed circuit boards; this is
> Elizabeth Irwin’s design team has proposed the following system with component reliabilities as indicated: What is the reliability of the system? Hint: The system functions if either R2 or R3 work.
> How much would reliability improve if the medical control system shown in Problem 17.9 changed to the redundant parallel system shown in Problem 17.10? Data from Problem 17.9: A medical control system has three components in series with individual relia
> With thousands of employees spread across nearly 100 locations in the United States, Mexico, and Canada, building a committed and cohesive workforce is a challenge. Yet Alaska Airlines is making it work. The company’s “people” focus states: “While airpla
> What is the reliability of the system shown?
> The Beta II computer’s electronic processing unit contains 50 components in series. The average reliability of each component is 99.0%. Using Figure 17.2, determine the overall reliability of the processing unit. Data from Figure 17.2:
> The distributor of lighting system mentioned in Problem 16.8 has decided to implement a Lean management program. As a result, the firm has signed a long-term contract with a supplier to place orders online, which will reduce ordering cost to LE 100 per o
> A distributor of lighting system in Egypt uses the EOQ model to manage its inventory from LED light bulbs. The annual demand for LED light bulbs is 200,000 units, holding cost is LE 12 per unit per year, and ordering cost from supplier is LE 2,000 per or
> Maggie Moylan Motorcycle Corp. uses kanbans to support its transmission assembly line. Determine the size of the kanban for the mainshaft assembly and the number of kanbans needed.
> Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. Setup cost = $30 Annual holding cost = $120 per subassem
> Tej Dhakar’s company wants to establish kanbans to feed a newly established work cell. The following data have been provided. How many kanbans are needed?
> Al-Arabi Company in Egypt is a manufacturer of steel knobs. The manager decided to introduce the Kanban system to reduce inventory. Using the information in the table below, how many Kanbans are required?
> Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a reduced lot size. The firm uses a work year of 305 days. a) What is the setup cost, based on the desired lot size? b) What is the
> Given the following information about a product at Michael Gibson’s firm, what is the appropriate setup time? Annual demand = 39,000 units Daily demand = 150 units Daily production = 1,000 units Desired lot size = 150 units Holding cost per unit per year
> Fast & Fresh Pastry is a medium-sized company in Australia, specialized in baking and distributing pastries in high volumes. They serve gas stations, convenience stores, and cafeterias. Their products line includes cinnamon rolls, croissants, bear cl
> Flores Manufacturing, Inc., is moving to kanbans to support its electronic-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. Setup cost = $25 Annual holding cost = $200 per subassembly Daily produc
> Ferdows Electronics, Inc. (FEI), produces short runs of custom microwave radios for railroads and other industrial clients. You have been asked to reduce inventory by introducing a kanban system. After several hours of analysis, you develop the following
> How do the answers to Problems 16.8 and 16.9 provide insights about the implementation of JIT Lean Management Systems? Data from Problem 16.8: A distributor of lighting system in Egypt uses the EOQ model to manage its inventory from LED light bulbs. The
