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business
operations management 6th
Operations Management An Integrated Approach 2nd Edition R. Dan Reid ,Nada R. Sanders - Solutions
Explain the importance of layout planning for everyday life. How has poor layout planning affected your life?
Explain the importance of layout planning for a busi- ness. What are the consequences of a poor layout?
Make a recommendation for Jenn as to what she should do and the information that she should provide in her request.
Discuss the pros and cons of using average demand to assess capacity requirements. Is this a reasonable approach for the ER?
How would your factor analysis be different if you had se- lected a different capacity alternative?
Once you have selected the factors for the two capacity al- ternatives, use factor rating to select a new location for Data Tech.
Help Jeff decide whether he should give greater priority to a smaller facility with possibility for expansion, or move into a larger facility immediately. Decide on which is the best alternative and choose weights for the two capacity factors based on your findings.
The Quick Copy center for document copying is deciding where to locate a new facility. The annual fixed and variable costs for each site it is considering have been estimated as fol- lows:Location Fixed Costs Variable Costs A $85,000 $2/unit B $49,000 $7/unit C $35,000 $10/unit D $65,000 $6/unit If
Shoeless Joe is a specialty retailer that is deciding where to locate a new facility. The annual fixed and variable costs for each possible site have been estimated as follows: Location Fixed Costs Variable Costs A $70,000 $1/unit B $34,000 $5/unit C $20,000 $8/unit D $50,000 $4/unit If demand is
Given here are the coordinates for each of the 4 towns to be serviced by the warehouse in Problem 15.Use the information from Problem 15 and the center of gravity method to determine coordinates for the warehouse. Town Coordinates (X, Y) A (4, 18) B (12,2) C (10,8) D (8, 15)
Joe's Sports Supplies Corporation is considering where to locate its warehouse in order to service its 4 stores in 4 towns: A, B, C, and D. Two possible sites for the warehouse are being con- sidered, one in Jasper and the other in Longboat. The following table shows the distances between 2
The Bakers Dozen Restaurant is considering opening a new location. It has considered many factors and identified the ones that are most important. Two locations are being evaluated based on these factors, using factor rating. Each location has been evaluated relative to the factors on a 5-point
Sue and Joe are a young married couple who are consid- ering purchasing a new home. Their search has been reduced to two homes that they both like, at different locations. They have decided to use factor rating to help them make their decision. They have listed the factors they consider important
The owners of Speedy Logistics, a company that pro- vides overnight delivery of documents, are considering where to locate their new facility in the Midwest. They have nar- rowed their search down to two locations and have decided to use factor rating to make their decision. They have listed the
Jody of Jody's Custom Tailoring is considering ex- panding her growing business. The question is whether to expand with a bigger facility than she needs, or with a small facility, knowing that she will have to reconsider expanding in 3 years. Jody has estimated the following chances for demand: The
Spectrum Hair Salon is considering expanding its busi- ness as it is experiencing a large growth. The question is whether it should expand with a bigger facility than needed, hoping that demand will catch up, or with a small facility, knowing that it will need to reconsider expanding in 3 years.
Demand has grown at Dairy May Farms, and it is consid- ering expanding. One option is to expand by purchasing a very large farm that will be able to meet expected future demand. Another option is to expand the current facility by a small amount now and take a wait-and-see attitude, with the
The owners of Sweet-Tooth Bakery have determined that they need to expand their facility in order to meet their in- creased demand for baked goods. The decision is whether to ex- pand now with a large facility or expand small with the possibil- ity of having to expand again in 5 years. The owners
The Steiner-Wallace Corporation has determined that it needs to expand in order to accommodate growing demand for its laptop computers. The decision has come down to either ex- panding now with a large facility, incurring additional costs and taking the risk that the demand will not materialize, or
The design and effective capacities for a local emergency facility are 300 and 260 patients per day, respectively. Currently the emergency processes 250 patients per day. What can you conclude from these figures?
The design and effective capacities for a local paper manu- facturer are 1000 and 600 pounds of paper per day, respectively. At present the manufacturer is producing 500 pounds per day. Compute capacity utilization for both measures. What can you conclude?
The town barber shop can accommodate 35 customers per day. The manager has determined that if two additional barbers are hired, the shop can accommodate 80 customers per day. What are the design and effective capacities for the barber shop?
Beth's Bakery can comfortably produce 60 brownies in one day. If Beth takes some unusual measures, such as hiring her two aunts to help in the kitchen and work overtime, she can produce up to 100 brownies in one day. (a) What are the design and effective capacities for Beth's Bakery? (b) If Beth is
A manufacturer of printed circuit boards has a design ca- pacity of 1,000 boards per day. The effective capacity, however, is 700 boards per day. Recently the production facility has been producing 950 boards per day. Compute the design and effective capacity utilization measures. What do they tell
Joe's Tasty Burger has determined that its production fa- cility has a design capacity of 400 hamburgers per day. The ef- fective capacity, however, is 250 hamburgers per day. Lately Joe has noticed that output has been 300 hamburgers per day. Com- pute both design and effective capacity
Explain the differences among factor rating, the load-distance model, and break-even analysis. What criteria does each method use to make the location decision?
Describe five factors that should be considered in the lo- cation decision.
Describe the steps used to make location decisions.
Describe three advantages and three disadvantages of globalization.
Pind examples of good and bad location decisions.
Explain the consequences of poor location decisions for a business.
Find and discuss business examples of overcapacity and undercapacity.
What are decision trees, and how do they help us make better decisions?
What are the steps in capacity planning?
How is capacity utilization computed, and what does it tell us?
Explain the differences between design capacity and ef fective capacity.
Explain why capacity planning is important to a business
Use at least two different forecasting models on the new data set you developed in question 2, by aggregating the original data. Compare their forecast performance and provide an evalu- ation.
Aggregate the original data for October as you see appro- priate (e.g., sum up by day of week, time of day, week of the month, etc.). This will give you a new data set to work with. An- alyze your data for patterns. Can you find any?
What is your opinion of the level at which the data is be- ing collected? What are some of the advantages of collecting data at this level?
What method would you use to forecast monthly cargo jean demand for the second year given the previous year's monthly de- mand? Explain why you selected your approach. Generate the forecasts for each month of the second year with your method. Determine your forecast error and the inventory
Is exponential smoothing with trend the best model for forecasting 5-pocket cargo jeans? Why?
Explain what has happened to the data for Urban Run. What are the consequences of continuing to use seasonal expo- nential smoothing? What model would you use? Generate a forecast for the 4 quarters of the 4th year using your model. De- termine your forecast error and the inventory consequences.
Is seasonal exponential smoothing the best model for fore- casting Urban Run athletic wear? Why?
The following data were collected on the study of the rela- tionship between a company's retail sales and advertising dollars: Retail Sales ($) 29,789 Advertising ($) 16,893 18,398 35,434 38,732 20,376 43,585 22,982 46,821 25,732 49,2831 27,281 52,271 32,182 55,289 35,298 57,298 36,281 58,293.
Given the sales data from problem 23, generate forecasts for months 7-24 using a 6-period and a 3-period moving aver- age. Use MAD to compare the forecasts. Which forecast is more stable? Which is more responsive and why?
Mop and Broom Manufacturing has tracked the number of units sold of their most popular mop over the past 24 months. This is shown. Month Sales Month Sales Month Sales 1 239 9 310 17 369 2 248 10 335 18 378 3 256 11 348 19 367 4 260 12 353 20 383 5 271 13 355 21 394 6 280 14 368 22 393 76 295 15 379
A producer of picture frames uses a tracking signal with limits of 4 to decide whether a forecast should be reviewed. Given historical information for the past 4 weeks, compute the tracking signal and decide whether the forecast should be re- viewed. The MAD for this item was computed as2.Actual
Two different forecasting models were used to forecast sales of a popular soda on a college campus. Actual demand and the two sets of forecasts are shown. Use MAD to explain which method provided a better forecast. Actual Period Demand Forecast 1 Forecast 2 1 90 78 87 2 87 85 88 3 92 84 90 45 4 95
A company has used 3 different methods to forecast sales for the past 5 months. Use MAD and MSE to evaluate the per- formance of the 3 methods. (a) Which forecasting method performed best? Do MAD and MSE give the same results? Method Method Method Period Actual A B C 1 10 10 9 8 2345 8 11 10 11 4
Pumpkin Pies Galore is trying to forecast sales of pies for the month of December. Demand for pies in September, Octo- ber, and November has been 230, 304, and 415, respectively. Edith, the company's owner, uses a 3-period weighted moving average to forecast sales. Based on her experience, she
Given the following data, use exponential smoothing with a 2 and a = .5 to generate forecasts for periods 2 through 6.Use MAD and MSE to decide which of the two mod- els produced a better forecast. Period Actual Forecast 15 17 23456 18 3 14 16 13 16
The number of patients coming to the Healthy Start ma- ternity clinic has been increasing steadily over the past eight months. Given the following data, use a linear trend line to fore- cast attendance for months 9 an 10.Clinic Attendance Month (in thousands) 1 3.4 2 3.9 3 4.5 4 5.0 5 5.8 6 5.9 7
A company uses exponential smoothing with trend to forecast monthly sales of its product, which show a trend pat- tern. At the end of week 5, the company wants to forecast sales for week6.The trend through week 4 has been 20 addi- tional cases sold per week. Average sales have been 85 cases per
Burger Lover Restaurant forecasts weekly sales of cheese- burgers. Based on historical observations over the past 5 weeks, make a forecast for the next period using the following methods: simple average, 3-period moving average, and exponential smoothing with a = 3, given a forecast of 328
Small Wonder, an amusement park, experiences seasonal attendance. It has collected two years of quarterly attendance data and made a forecast of annual attendance for the coming year. Compute the seasonal indexes for the 4 quarters and gen- erate quarterly forecasts for the coming year, assuming
Happy Lodge Ski Resorts tries to forecast monthly atten- dance. The management has noticed a direct relationship be- tween the average monthly temperature and attendance. (a) Given five months of average monthly temperatures and corresponding monthly attendance, compute a linear re- gression
The number of students enrolled at Spring Valley Ele- mentary has been steadily increasing over the past 5 years. The school board would like to forecast enrollment for years 6 and 7 in order to better plan capacity. Use a linear trend line to fore- cast enrollment for years 6 and 7.Year Enrollment
The president of a company was interested in determin- ing whether there is a correlation between sales made by differ- ent sales teams and hours spent on employee training. These figures are shown. Sales Training (in thousands) Hours 25 10 40 12 36.12 50 15 11 6 (a) Compute the correlation
Rosa's Italian restaurant wants to develop forecasts of daily demand for the next week. The restaurant is closed on Mondays and experiences a seasonal pattern for the other six days of the week. Mario, the manager, has collected information. on the number of customers served each day for the past
Demand at Nature Trails Ski Resort has a seasonal pattern. Demand is highest during the winter, as this is the peak ski sea- son. However, there is some ski demand in the spring and even fall months. The summer months can also be busy as visitors of- ten come for summer vacation to go hiking on the
A manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its prod- uct. At the end of December the company wishes to forecast sales for January. The estimate of trend through November has been 200 additional boards sold per month. Average sales
The following historical data has been collected represent- ing sales of a product. Compare forecasts using a 3-period mov- ing average, exponential smoothing with a a=.2, and linear re- gression. Using MAD and MSE, which forecasting model is best? Are your results the same using the two error
The manager of the health clinic in problem 5 would also like to use exponential smoothing to forecast demand for emer- gency services in their facility. As in problem 5, she is not sure whether to use a high or low value ofa. To make her decision, she would like to compare the forecast accuracy of
The manager of a small health clinic would like to use ex- ponential smoothing to forecast demand for laboratory services in their facility. However, she is not sure whether to use a high or low value ofa. To make her decision, she would like to compare the forecast accuracy of a high and low a on
The following data are monthly sales of jeans at a local de- partment store. The buyer would like to forecast sales of jeans for the next month, July. (a) Forecast sales of jeans for March through June using the nave method, a two-period moving average, and expo- nential smoothing with an a=0.2.
Hospitality Hotels forecasts monthly labor needs. (a) Given the following monthly labor figures, make a cast for June using a 3-period moving average and a 5-period moving average. Month Actual Values January 32 February 41 March 38 April 39 May 43(b) What would be the forecast for June using the
Lauren's Beauty Boutique has experienced the following weekly sales: Week Sales 1 432 2 396 345 3 415 4 458 5 460 Forecast sales for week 6 using the nave method, a simple aver- age, and a 3-period moving average. fore-
Sales for a product for the past 3 months have been 200, 350, and 287.Use a 3-month moving average to calculate a fore- cast for the fourth month. If the actual demand for month 4 turns out to be 300, calculate the forecast for month 5.
Explain some of the factors to be considered in selecting a forecasting model.
Explain why it is important to monitor forecast errors.
What are the differences among models that forecast the level, trend, and seasonality?
Describe the different assumptions of time series and causal models.
What are the main types of data patterns? Give examples of each type.
Identify the key differences between qualitative and quan- titative forecasting methods. Which is better in your opinion and why?
Describe the steps involved in forecasting.
Give three examples from your life in which you may fore- cast the future.
Give three examples showing why a business needs to forecast.
What factors should Dixon and D&S consider before making a decision on this relationship?
Identify the pros and cons of a JIT relationship from a buyer's point of view.
Identify the pros and cons of a JIT relationship from a supplier's point of view.
How would you characterize Josh's view of JIT? What challenges do you think a consultant will face in implementing JIT at Katz? If you were a consultant, how would you approach these problems?
What suggestions do you have for improving the way the production schedule is currently made?
If production of standards and specials is separated, how different will JIT implementation be for production of the dif- ferent products? Explain what would be needed in JIT imple- mentation for both products.
What suggestions do you have for implementing JIT at Katz? Should specials and standards be produced on the same line? (Hint: Do they require the same type of operation?)
Consider the information from Problem 7.Determine how the number of kanbans and the inventory level will be af- fected if: (a) the container size is decreased to 15 units. (b) the container size is increased to 40 units. (c) the safety stock is increased to 20 percent.
Determine how the number of kanbans and the inventory level will be affected if the time required for Robert to receive the material increases to 30 minutes.
Consider the information from Problem
Robert produces 300 units of a product per hour and 30 units are needed to fill a container. It takes 15 minutes to receive the materials needed from the previous workstation. The com- pany currently uses a safely stock of 10%. Determine the num- ber of kanbans needed between Robert's station and
Anna works on an assembly line where it takes her 30 minutes to produce 20 units of a product needed to fill a con- tainer. It takes her an additional 5 minutes to transport the container to Josh, who works at the next station. The company uses a safety stock of 20%. The current assembly line uses
A dye cell at the Acme Clothing Factory uses 500 pounds of dye each day. The dye is moved in vats at a rate of approxi- mately 1 per hour. Each vat holds 10 pounds of dye. Manage- ment has set safety stock at 10 percent. The facility operates 8 hours per day. How many vats should be used?
Carlos Gonzales is production manager at an assembly plant that manufactures cordless telephones. The company is planning to install a pull system. The process is being planned to have a usage rate of 50 pieces per hour. Each container is de- signed to hold 10 pieces. It takes an average of 30
A production cell at Canderberry Candle facility uses a pull method to supply wicks to the assembly line. The wicks are used at a rate of 300 per day. Each container holds 20 wicks, and usu- ally waits 20 minutes in the production cell. Management wants a safety stock of 10%. How many containers
A manufacturer of thermostats uses a kanban system to control the flow of materials. The packaging center processes 10 thermostats an hour and receives completed thermostats every 30 minutes. Containers hold 5 thermostats each. (a) How many kanbans are needed for the packaging center? (b) If
Jason Carter works for a producer of soaps that come in packages of 6 each. His job is to fill the packages with soap, and he is expected to process 30 packages an hour. The facility where Jason works uses a kanban production system in which each container holds 5 packages of soap. It takes 20
Explain how you could use JIT to make your life more efficient.
Find examples of JIT in services. Which aspects of JIT are easiest to apply in services?
Describe the JIT implementation process. Why should some things be changed before others?
Find an example of a company that has high respect for people.
Explain the importance of respect for people in JIT.
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