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business
operations management 6th

Questions and Answers of Operations Management 6th

9. Under what conditions would a por c chart be used instead of X and R charts?
8. Supplier selection and supplier relations are considered important to the purchasing department. Should the quality assurance department ever become involved in these issues? Why, or why not?
7.a. What is meant by the consumer's risk?b. What is meant by the producer's risk?
6. In establishing trial control limits, why are the limits for R established first?
5. What are the meanings of the terms in control and out of control?
4. What is the purpose of SPC?
3. Which are generally considered better, preventive or corrective approaches to quality control? Why?
2. Give four reasons why companies may use samples instead of checking every item. When might a company prefer to check every item?
1. What are three general areas in which statistics can be applied to control and improve quality?
The radiology department at a large hospital has an average retake rate of 8.8 percent; that is, 8.8 percent of its radiographs must be repeated because the picture is not sufficiently clear. Errors
What is the probability that an X from a random sample of 4 observations (n = 4)will fall within these limits if the mean of the population actually is at 31,000 pounds? That is, what is B (that is,
Incoming steel to be used in processing is tested to see that it is of the right chemical composition before it is machined. Dimensions of the machined parts are inspected prior to the heat-treating
2. Bookstore chains like Barnes and Noble often hold special events to promote new www.barnesandnoble. books or authors. Visit the Barnes and Noble Web site at www.barnesandnoble.com, com browsing
1. Ben & Jerry’s is well known for its exotic ice cream flavors—Rainforest Crunch and Cherry Garcia, to name two. To keep current, the company must keep coming up with ideas for tasty new
13. A PERT network for a project is shown at the top of page 664.a. Find the expected duration of each activity.b. Find the expected duration of the critical path.c. Find the critical path.d. Find
2. Develop an AOA network for the store opening in problem 1.
8. Why might simulation provide an estimate of the probability of completing a project by a given time that is different from an estimate based solely on the critical path?
7. Why does analysis of only the critical path present an optimistic estimate of the proba- bility that the project will be completed within a given time?
6. What is the theoretical basis for assuming that the duration of a project can be repre- sented by a normal probability distribution?
5. What is free float?
4. What is the major difference between PERT and CPM?
3.a. What is a work breakdown structure (WBS)?b. Why is a WBS useful?
2. How does a project differ from a job that is processed through a job shop or a service facility?
1. Why is it particularly advantageous to have a standardized vocabulary and scheduling technique in a company that uses project management to accomplish many of its jobs?
11. A two-stage assembly line is balanced with the expected time at each station equal to 4 minutes. Assume that the time at each station has a probability of 0.30 that 3 minutes will be required for
Customers arrive at the shoe repair shop with interarrival times given by the distribution in problem 2. A customer is always waiting when the shop opens, and new customers are accepted for 7 hours.
a. Compute the mean demand at each outlet and sum them. Compare this mean to the mean obtained in problem 7.b. Construct a cumulative probability distribution for weekly demand at the distribution
6.a. Perform a simulation to determine the amount of grain received in an 8-hour day by the Mid-American Grain Company (presented as an application in this supplement).Use the cumulative probability
5. Repeat the procedure for problem 4, using the last 25 three-digit random numbers in the column used for problem 4.a. What is the mean of these observations?b. By what percentage does the mean of
4. Use values from the cumulative Poisson distribution with 4 = 2 as provided in Appendix III. From these values, construct a table for use with random numbers as the technique for generating random
3. Appendix IV contains five major columns of random numbers, each of which contains four two-digit columns. Use the first two digits on the left in the middle major column. Begin at the top of the
Is great proficiency in computer programming necessary for the use of computer simulation?Why or why not?
Briefly describe the procedure used in Monte Carlo simulation to select simulated values of a discrete random variable with the same probabilities that were observed in the actual system.
8. In a simulation study, how can the investigator determine when enough observations have probably been made with a particular set of values for the model’s parameters?
7. Discuss some of the trade-offs that must be considered in deciding how detailed and realistic to make a simulation model.
6. Why is there no guarantee that a simulation study will determine an optimal solution to a problem or an optimal set of conditions for the system being studied?
Briefly describe four types of situations in nonmanufacturing operations that can be studied by means of simulation.
Briefly describe four types of situations in manufacturing operations that can be studied by means of simulation.
Briefly describe five possible advantages of simulation.
Outline the steps that might be involved in a simulation study.
Define simulation.
2. Say the name Midas, and many people would automatically respond, muffler. That’s the way Midas likes it, but shop managers must find ways to cope with nonuniform demand.Visit a Midas Web site by
1. Del Monte is well known for supplying fresh produce such as bananas and pineapples to supermarkets nationwide. To do this, the company must purchase its fruits and vegetables wherever they are
12.On the basis of a traffic count, it is estimated that the number of vehicles using an automatic car wash at a particular location will average 11 per hour. A Poisson distribution is assumed. The
11.How much expense for employees’ time would be saved by the company in problem 10 if the copy machine were replaced by a faster one that provided a mean service rate of 22 per hour?
10.Users of a photocopy machine in a local office arrive according to a Poisson distribution and wait until they obtain the copies they desire. The mean arrival rate is 10 users per hour. The service
9. The mines discussed in problem 8 have steadily gained sales in several countries and are shipping a larger volume of ore. Sea Lanes Shipping Services Ltd. has started using larger ships that
8. Sea Lanes Shipping Services Ltd. operates docks at Tocopilla, Chile, and provides ships to transport ore for the San Carlos Copper Mine nearby. Currently, only 1 dock is used for loading ore
7. The Fantastic Flower Company, a wholesale distributor of fresh-cut flowers, now operates a single-channel facility. The owners have been offered the opportunity to add a second loading dock. The
6. Assume that the bank in problem 4 has room in its drive for only 5 cars (including the one being served) and that arrivals who appear will not wait if the drive is full.a. Find Po.b. Compare this
5.a. With regard to the drive-in window in problem 4, what is the probability of more than 5 vehicles in the system?b. If teller operations were improved so that they required an average of 2.8
4. A small branch bank has a single drive-in window. The customer arrival rate is Poisson-distributed with a mean of 14 customers per hour. Service times are exponentially distributed with a mean of
3. The owners of Sparkle Auto Wash believe that they can reduce the mean time even further by training employees to be more efficient at determining which level of wash customers want, collecting
2.The owners of Sparkle Auto Wash do not have room to expand the facility to more than one channel, but they can reset the speed at which vehicles are pulled along the automated track through the car
1. Cars and trucks arrive at Sparkle Auto Wash, a single-channel service facility, at a mean rate of 9.60 per hour. The service takes an average of 4.5 minutes per vehicle (including asking customers
8. How does waiting-line theory relate to capacity decisions? How can the theory of multi- channel queues be related to capacity decisions? How might truncated queues be related to a capacity
7. Briefly describe some examples of queuing situations.
6. Why are waiting lines or queues often desirable to some degree?
5. Why might a versatile work force be desirable, even though such employees must be paid more than persons who are not so versatile?
4. How can service operations utilize the equivalent of in-process inventory even though they cannot maintain an inventory of finished services?
3. How can some service operations try to tailor their capacity to conform more closely to a nonuniform demand pattern?
2. How can some service operations try to shape demand to fit their capacity more closely?
1. What are two major ways in which service operations differ from manufacturing operations which make a difference in the way services can be scheduled to try to achieve good utilization of their
A hospital’s emergency room has one physician on duty full time. Emergency patients arrive according to a Poisson distribution with a mean rate of 2.4 per hour.The physician can provide emergency
Battery Wholesale, Inc., purchases batteries for $14 each, and it costs $11 to process an order. The company sells about 12,000 of a particular type of battery per year at a uniform rate. The company
Postal Posts, Inc., produces and sells cedar mailbox posts to a broad market in the Western states. Demand is fairly uniform at 10,000 posts per year. The company can produce 75 posts per day, and
1. What are some of the costs that increase with the size of inventory?
2. What are some of the costs that may decrease as inventory is increased?
3. What basic assumptions underlie development of the most basic (procurement ver- sion) EOQ model?
4. Which of these assumptions is changed if the item is produced internally?
5. Why is it important to analyze setup procedures and costs in order to seek all reason- able ways to keep setup costs low?
6. How is the most basic model adapted when demand is not deterministic?
7. Why can fixed cost be ignored in developing the EOQ?
8. Changes in what four general conditions might cause a company to increase its safety stock?
9. Describe briefly three methods that may be used to establish the amount of safety stock a company carries.
10. What is a service level?
11. Why is it difficult to determine an accurate estimate of stockout cost?
1- Extended Play Stereo, Inc., sells 750 Super Power amplifiers per year and expects sales to continue at that rate. The holding cost is 22 percent of the unit cost per year, and the amplifiers cost
2- Suppose that Extended Play Stereo opens a second outlet but continues to use one central purchasing location. The holding cost, order cost, and item cost remain the same as in problem 1, but the
3. Each year, the Black Hills Company purchases 22,000 of an item that costs $14 per unit. The cost of placing an order is $8, and the cost to hold the item for 1 year is 24 percent of the unit
4. Suppose that the Black Hills Company described in problem 3 uses an order quantity of 350 units and maintains a minimum inventory, or safety stock, of 65 units.a. Determine the average inventory
5. The Twin Rivers Driving Range has a fairly uniform business all year. About 20 dozen golf balls are lost, stolen, or damaged beyond use each of the 52 weeks of operation.The balls cost $5 a dozen
6. Pamona Electronics sells about 350 of a particular model of video cassette recorder(VCR) each year. The item costs $425, and the holding cost is 26 percent per year.The cost to process an order is
7. The Domino Taxi company uses 200,000 gallons of gasoline per year at a consistent rate. It costs $40 to have the truck come to the garage and deliver gasoline and to process the orders, invoices,
8. The Green Mountain Mower Company produces assorted lawn implements. Storage of a stack of housings for 20-inch lawn mowers requires 4 square feet of floor space in the warehouse, but they can be
9. Suppose the Green Mountain Mower Company is successful in reducing its cost per setup to $25.a. What will be the new EPL?b. Find the average inventory level.c. What are the annual setup and
10.The Williams Manufacturing Company uses an average of 250 model 178A relays per week at an approximately uniform rate throughout all 52 weeks of the year. The average cost of processing a purchase
11.Connecticut River Textile Mills produces a special type of cloth for bed linens, which is demanded at a relatively uniform rate of 220,000 yards per year (250 workdays).The production process for
12.Durango Castings has a long-term contract to deliver 1,450 pump housings per week, 52 weeks of the year. The company has a high-capacity machine that can produce these castings at a rate of 4,500
13.Durango Castings, mentioned in problem 12, has a lower-capacity machine that will make the pump housing at a rate of 1,600 per week. It cost only $140 to set up this machine, but it is estimated
14, The Whacko Brass Company produces brass door knockers, among other things. The company expects next year’s demand for door knockers to be 18,000 units at a uniform rate. It costs $125 to set up
15. Knitting Needles produces several designs of sweaters for sale in specialty stores. The production rate for a style of sweater is 20 units per day (250 workdays per year). The sales rate for this
16. Super Sport Shoes, Inc., sells a special shoestring at a uniform rate of 2,400 pairs per year. The order cost is $10, and the holding cost is 20 percent of the unit cost. For less than 1,000
17. Gemtronics Corporation produces electrical components for appliance and automotive industries. Previous daily demand for part XK202 has shown little seasonal variation, but has been normally
18. Alien Auto Co. distributes parts for foreign cars in a large Midwestern city. Demand for a particular size of oil filter has been uniform. The lead time to obtain the filters is 1 month, and the
19.a. How much would Alien Auto spend each year to hold inventory if it tried to stock enough oil filters to give a 90 percent service level? 95 percent? 97 percent? 99 percent?99.9 percent?b. Draw a
20. Kick Up Your Heels shoe shop sells an average of 6 pairs of a particular brand of running shoe each week. The weekly demand for this item is normally distributed with a standard deviation of 2.
1. Home Depot, a huge retailer for home improvement products sold both to homeowners and professionals, now boasts a 25,000-square-foot facility in Florida “to service exporters with prompt and
2. “Nothing Runs Like a Deere,” goes the old John Deere slogan, and the company is still running. Deere & Company now produces consumer products as well as farm equipment—lawnmowers,
The Kangaroo Special BMX dirt bike is composed of nine major subassemblies:frame, seat assembly, rear wheel assembly, chain, front wheel assembly, fork, brake assembly, handlebar assembly, and

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