Residents of Mill River have fond memories of ice skating at a local park. An artist has captured the experience in a drawing and is hoping to reproduce it and sell framed copies to current and former residents. He thinks that if the market is good he can sell 400 copies of the elegant version at $125 each. If the market is not good, he will sell only 300 at $90 each. He can make a deluxe version of the same drawing instead. He feels that if the market is good he can sell 500 copies of the deluxe version at $100 each. If the market is not good, he will sell only 400 copies at $70 each. In either case, production costs will be approximately $35,000. He can also choose to do nothing. If he believes there is a 50% probability of a good market, what should he do? Why?
> Do doctors’ offices generally have random arrival rates for patients? Are service times random? Under what circumstances might service times be constant?
> What are the components of the following queuing systems? Draw and explain the configuration of each. a) Barbershop b) Car wash c) Laundromat d) Small grocery store
> Provide examples of four situations in which there is a limited, or finite, waiting line.
> Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60 (and was normally distributed). Furthermore, the standard deviation for BX-5 was 7. Ms. Flynn would l
> A company has developed a promising new product and examines the following three alternatives of manufacturing. Alternative 1 is to buy a semiautomatic machine with an initial cost of €130,000. Alternative 2 is to buy a fully automatic machine with an in
> Discuss the likely outcome of a waiting line system where but only by a tiny amount (e.g.,
> Describe the behavior of a waiting line where / Use both analysis and intuition.
> Briefly describe three situations in which the first-in, first-out (FIFO) discipline rule is not applicable in queuing analysis.
> Which is larger, Ws or Wq? Explain.
> Describe what is meant by the waiting-line terms balk and renege. Provide an example of each.
> Is it good or bad to operate a supermarket bakery system on a strict first-come, first-served basis? Why?
> State the assumptions of the “basic” single-server queuing model (Model A, or M/M/1).
> Why is simulation such a widely used technique?
> List six ways that simulation can be used in business.
> Why might the results of a simulation differ each time you make a run?
> Huehn-Brown Products in St. Petersburg offers the following discount schedule for its 4-by-8-foot sheets of quality plywood. Home Sweet Home Company orders plywood from Huehn- Brown. Home Sweet Home has an ordering cost of $45. Carrying cost is 20%, and
> Why is it a good reason using a cumulative distribution as an input into a Monte Carlo simulation model?
> Explain the difference between simulated average demand and expected average demand.
> Lesedi Baard is the general manager of Quickmart, a South African convenience store. Quickmart offer a basic selection of items including food and beverages, homecare, household products, apparel, and hardware. Their target market includes people who nee
> Alabama Airlines opened its doors in December 2018 as a commuter service with its headquarters and hub located in Birmingham. The airline was started and managed by two former pilots, David Douglas and George Devenney. It acquired a fleet of 12 used prop
> A calculated optimal solution to a LP max problem is not always chosen. Explain why.
> Define the feasible region of a graphical LP problem. What is a feasible solution?
> What is a “corner point”? Explain why solutions to LP problems focus on corner points.
> List at least four applications of LP problems.
> Explain how to use the iso-cost line in a graphical minimization problem.
> How does a minimizing problem differ from a maximizing problem?
> Happy Pet, Inc., is a large pet store located in Long Beach Mall. Although the store specializes in dogs, it also sells fish, turtle, and bird supplies. The Everlast Leader, a leather lead for dogs, costs Happy Pet $7 each. There is an annual demand for
> Under what circumstances is the objective function more important than the constraints in an LP model?
> Why is it not advisable to round optimal solutions to nearest integer?
> Where a constraint crosses the vertical or horizontal axis, the quantity is fairly obvious. How does one go about finding the quantity coordinates where two constraints cross, not at an axis?
> Compare how the corner-point and iso-profit line methods work for solving graphical problems.
> From the manufacturing, organizational, and supply chain management points of view, what kind of challenges might a firm face in shifting its designing strategy from integrality to modularity?
> Define shadow price (or dual value).
> When introducing an additional constraint, what will happen to the solution of the optimization problem?
> Why is the diet problem, in practice, applicable for animals but not particularly for people?
> Good airline scheduling is essential to delivering outstanding customer service with high plane utilization rates. Airlines must schedule pilots, flight attendants, aircraft, baggage handlers, customer service agents, and ramp crews. At Alaska Airlines,
> Electric guitars made in China are relatively inexpensive and their quality keeps improving. In recent years, several companies realized that if they purchase semi-finished guitars, they can improve the consistency of the finished productsâ€&#
> Given the following data on a hardware item stocked by Andreas Wieland’s paint store in Copenhagen, should the quantity discount be taken? • D = 2,000 units; S = $10; H = $1; P = $1 • Discount price = $.75 • Quantity needed to qualify for discount = 2,00
> Frito-Lay, the massive Dallas-based subsidiary of PepsiCo, has 55 plants and 55,000 employees in North America. Seven of Frito-Lay’s 41 brands exceed $1 billion in sales: Fritos, Lay’s, Cheetos, Ruffles, Tostitos, Doritos, and Walker’s Potato Chips. Oper
> Alaska Airlines operates in a land of rugged beauty, crystal clear lakes, spectacular glaciers, majestic mountains, and bright blue skies. But equally awesome is its operating performance. Alaska Airlines consistently provides the industry’s number-one o
> As an Internet exercise, explain the rationale behind the creation of EFQM, and the fundamental concept defining the Enablers in the model. See www.efqm.org.
> According to a recent study by Nielsen,* consumers used to prefer stock-up visits, but 46% of them view shopping as a chore. The one-stop shopping experience that had taken most of the world by storm a couple of decades ago is changing and Aldi, a German
> Referring to Problem S11.2, Wellington Company re-estimated the probability of a “super-event” to 0.2% due to some heavy safety investment carried out in the Albuquerque plant. In addition, they replaced their second and third suppliers, for quality reas
> Following the incident of a furnace fire in the semiconductor plant in Albuquerque, New Mexico, Wellington Company decided to change its single-sourcing strategy of major components to multi-sourcing. The top management of Wellington Company believes tha
> How would you go about attempting to come up with the probability of a “super-event” or the probability of a “uniqueevent?” What factors would you consider?
> Use the data in Solved Problem 5.1 to examine what happens to the decision if Sarah King can increase all of Design B yields from 59,000 to 64,000 by applying an expensive phosphorus to the screen at an added manufacturing cost of $250,000. Prepare the m
> Sox Engineering designs and constructs air conditioning and heating systems for hospitals and clinics. Currently, the company’s staff is overloaded with design work. There is a major design project due in 8 weeks. The penalty for comple
> Ritz Products’s materials manager, Tej Dhakar, must determine whether to make or buy a new semiconductor for the wrist TV that the firm is about to produce. One million units are expected to be produced over the life cycle. If the product is made, start-
> Zhong Factory manufactures different types of computer motherboards in batches. The demand for one of its motherboards is 200 units/day, while Zhong has a capacity of up to 1,000 motherboards/day. The factory operates 250 days per year. The setup cost is
> Portland Savings and Loan is considering new computer software, which, because of installation and training cost, will have an unusual pattern of net receipts. The expected receipts are: $20,000 in year 1, nothing in the next year, $30,000 in year 3, and
> Cheryl Druehl needs to purchase a new milling machine. She is considering two different competing machines. Milling Machine A will cost $300,000 and will return $80,000 per year for 6 years, with no salvage value. Milling machine B will cost $220,000 and
> Given the contribution made on each of the three products in the following table and their position in the life cycle, identify a reasonable operations strategy for each:
> MacDonald Products, Inc., of Clarkson, New York, has the option of (a) proceeding immediately with production of a new top-of-the-line stereo TV that has just completed prototype testing or (b) having the value analysis team complete a study. If Ed Lus
> The product design group of Iyengar Electric Supplies, Inc., has determined that it needs to design a new series of switches. It must decide on one of three design strategies. The market forecast is for 200,000 units. The better and more sophisticated th
> Prepare a bill of material for a mechanical pencil.
> Prepare a bill of material for a computer mouse (GeniMouse).
> Prepare a bill of material for the table illustrated:
> Prepare a bill of material for a wooden pencil, complete with eraser.
> Al-Tawheed Discount Store sells a certain type of office chair for E£400. The annual holding cost is E£40 per unit per year, annual demand is 900 chairs, and the order cost is E£800 per order. The lead time is 14 days. The store is open 360 days per year
> Prepare a bill of material and an assembly chart for a salad of your own choosing.
> Develop the BOM for product XYZ made from two units of B, five units of C, and four units of D. B is subassembled from six units of E and two units of F; C from four units of E and three units of D, and D from two units of G and four units of H.
> Prepare a script for telephone callers at the university’s annual “phone-a-thon” fundraiser.
> Draw an assembly chart for a pair of eyeglasses and its case.
> Prepare a product-by-value analysis for the following products, and given the position in its life cycle, identify the issues likely to confront the operations manager and his or her possible actions. Product Alpha has annual sales of 1,000 units and a c
> The table below shows the activities, immediate predecessors, and activity durations of a project. Draw the AON project network. How long would it take to complete this project? What is the length of the critical path?
> Using the project information listed in the table below: a) Draw the AON network for the construction activity. b) Draw the AOA for the construction activity.
> The food items listed in the following table are stored on a cruise ship for a 7-day cruise. Using the following figure, indicate the best storage location for each item to minimize average distance traveled.
> Amy Zeng, owner of Zeng’s Restaurant Distributions, supplies nonperishable goods to restaurants around the metro area. She stores all the goods in a storage area with a single dock and one aisle. The goods are divided into five categori
> Peter Bell of Bell Electronics maintains an extensive stock of computer components for the consumer market. He has hundreds of drawers/cabinets for the many small parts (mother boards, graphic cards, fans, etc.), and he wants to organize them so as to mi
> Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Metters Cabinets projects an annual demand of 24,000 units for the Max
> Nubia textile shop in Egypt imports one of its products from China. The transportation time is currently 40 days, the cost per unit is E£35, and the holding cost of the product is 30% annually. Because of the long shipping time, the manager is evaluating
> The Smoked Salmon, a seafood supplier in Egypt, has a new yearly contract to supply fresh seafood products to Saudi Arabia. The value of the contract is E£800,000 (Egyptian Pound) and the estimated holding cost is 20% annually. The Smoked Salmon is evalu
> If you have a third option for the data in Problem S11.16 and it costs only $4,000 and also takes 20 days, what is your most economical plan?
> A company with a plant in Basel can be served by both rail and truck at a cost of €250 and €1,500 per load, respectively. The transit time for the train is 15 days while that for the truck is 5 days. a) If the daily cost of transit inventory is €100, whi
> You are considering opening a copy service in the student union. You estimate your fixed cost at $15,000 and the variable cost of each copy sold at $.01. You expect the selling price to average $.05. a) What is the break-even point in dollars? b) What is
> Given the following data, calculate a) BEPx; b) BEP$; and c) the profit at 100,000 units: P = $8/unit V = $4/unit F = $50,000
> Janelle Heinke, the owner of Ha’Peppas!, is considering a new oven in which to bake the firm’s signature dish, vegetarian pizza. Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $20,
> Given the data in Problem S7.17, at what volume (units) of output would the two alternatives yield the same profit?
> Using the data in Problem S7.17: a) What is the break-even point in dollars for proposal A if you add $10,000 installation to the fixed cost? b) What is the break-even point in dollars for proposal B if you add $10,000 installation to the fixed cost?
> Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $12.
> Matthew Bailey, as manager of Designs by Bailey, is upgrading his CAD software. The high-performance (HP) software rents for $3,000 per month per workstation. The standard-performance (SP) software rents for $2,000 per month per workstation. The producti
> Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its fixed cost to be $500.00 and its variable cost to be $0.50 per unit. Selling price is expected to average $0.75 per unit. a) What is Smithson’s break-even p
> When is the application of a multi-domestic strategy most appropriate? What kind of industries can this be applied to?
> Sean Willems has evaluated the vendors in Table S11.3 as well as Fricker V-Tech, the vendor in Problem S11.13, but the Quality Control Manager says that new data suggest that Siemsen Systems, Inc.’s quality has deteriorated, and Siemsen should now score
> Referring to Problem S11.12, Sean Willems, in addition to the two possible vendors evaluated in Table S11.3,has found a third possible vendor. He now wants to evaluate all three vendors using the weights in Table S11.3. He scores the third vendor, Fricke
> The supply chain manager for Keskin Industries, Sean Willems, has developed the data shown in Table S11.3 for two vendors. Based on the weights and rankings shown, which is the preferred vendor?
> Using the data in Problem S11.10, assume that both Donna, Inc. and Kay Corp. are able to move all their “poor” ratings to “fair.” How would you then rank the two firms?
> As purchasing agent for Eynan Enterprises in Richmond, Virginia, you ask your buyer to provide you with a ranking of “excellent,” “good,” “fair,”
> Consider a three-firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer’s demand over an 8-week period was 100 units each of the first 2 weeks, 200 units each of the second 2 weeks, 300 units each of the th
> A manufacturer produces a single product that is sold abroad to an industrial company through the following channel. a) Calculate the bullwhip effect for each stage of the supply chain. b) What kind of actions can the management take to smooth the bullwh
> Over the past 5 weeks, demand for wine at Winston’s Winery has averaged 1,890 bottles, and the variance of demand has been 793,000 bottles. Winston has ordered an average of 1,900 bottles per week over that time period, with a variance of orders of 1,805
> Tim Urban, owner/manager of Urban’s Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy’s Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 * 3 50 equals the total rooms rented for th
> Consider the supply chain illustrated here: Last year, the retailer’s weekly variance of demand was 200 units. The variance of orders was 500, 600, 750, and 1,350 units for the retailer, wholesaler, distributor, and manufacturer, respec
> Kryoneri Perfume Company is considering two alternatives for the supply of vetiver oil (an essential oil used in high-end perfumes). Alternative 1 is to use two suppliers located in Haiti, where half of the world’s vetiver oil comes from. Each has a “uni
> Johnson Chemicals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a “unique-event” risk of 5%, and the probability of a “superevent” that would disable both at the same time is estimated to be 1.5%. Opti
> Phantom Controls monitors and repairs control circuit boxes on elevators installed in multistory buildings in downtown Chicago. The company has the contract for 108 buildings. When a box malfunctions, Phantom installs a new one and rebuilds the failed un
> A warehouse manager at Mary Beth Marrs Corp. needs to simulate the demand placed on a product that does not fit standard models. The concept being measured is “demand during lead time,” where both lead time and daily d
> Susan Sherer’s grocery store has noted the following figures with regard to the number of people who arrive at the store’s three checkout stands and the time it takes to check them out: Simulate the utilization of the
> Arnold Palmer Hospital is studying the number of emergency surgery kits that it uses on weekends. Over the past 40 weekends, the number of kits used was as follows: The following random numbers have been generated: 11, 52, 59, 22, 03, 03, 50, 86, 85, 15,
> Barbara Flynn sells papers at a newspaper stand for $.35. The papers cost her $.25, giving her a $.10 profit on each one she sells. From past experience Barbara knows that: a) 20% of the time she sells 100 papers. b) 20% of the time she sells 150 papers.
