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business
operations management

Questions and Answers of Operations Management

A firm has a training program for assembling computers. The firm closely monitors the progress of the trainees, and those who cannot meet the standard of a assembling a computer in the 5th repetition
The clerical employees of an insurance company process claims and the process has an 84% learning rate. The learning in this process reaches a steady state (i.e., no additional learning takes place)
A contractor for the Department of Defense (DoD) is manufacturing a component for the hydraulic systems of jet fighter planes. The direct labor time estimate for the production of the first unit of
The daily usage rate of wheel bearings at a machine shop is normally distributed with a mean of 200 per day and a standard deviation of 15 per day. The lead time fluctuates in a normally distributed
A health food store buys 14-ounce bags of quinoa from a Mexican supplier. The store’s daily demand for quinoa is normally distributed with a mean of 30 bags per day and a standard deviation of 4
Ventura Lumber Mill (not a real company) in Salvador, Brazil, processes 9,000 logs annually and operates 300 days during a year. Ventura’s supplier delivers orders to the lumber mill at the rate of
Cannes Croissants (not a real company) wishes to determine the optimum production quantity for its top-selling product, almond croissants. The annual demand for almond croissants is 12,000 units. The
Amco International is a fictional importer of handcrafted leather and reptile skin handbags from India. The Indian company that sells these handbags will ship these handbags only in order sizes of
Auto Mart is a mythical seller of a variety of automobile parts and accessories. Auto Mart’s owner, Jonathan Trott, wishes to determine the optimum order quantity for one of the store’s popular
Supermarkets carry a wide range of inventory items that makes managing inventory difficult. The manager of a supermarket in your neighborhood is your friend and seeks your help in calculating
Refer to problem 5: Hick’s company’s inventory valuation was inaccurate. If the company’s correct beginning inventory balance is $2,925,000 and its ending inventory was $4,110,000 (again in
Hick’s Furniture Company (not a real company) sells industrial furniture for office buildings. During the current year, the company reported cost of goods sold on its income statement of
Refer to problem 3: What is Reliance Inc. days of inventory in stock if in 2013 the company’s beginning inventory balance was $30.25 billion, its ending inventory balance was $29.12 billion, and
The financial statements of mythical Reliance Inc. show that in 2012 its beginning inventory balance was $31.82 billion and ending inventory balance was $30.25 billion. The company’s cost of goods
The same definition of value stream holds true for the office just as it does for the automobile factory, although in an office, it is much harder to see. The easiest value streams to see in an
A U.S. Postal Service office is planning to adopt a pull system. With the current push system, a machine cancels the stamped letters, which are loaded into tubs with 400 letters in each tub. The tubs
Megatech Inc. is a fictional producer of airwave scanners for the defense industry. The company is planning to implement a Kanban control system to eliminate waste in the form of unnecessary
A local automotive company delivers five transmissions to the fabrication line every hour. On average, five vehicles are produced every hour and management has decided on a safety stock that equals
Given the following information, determine the number of Kanban cards required:Demand rate = 800 units per hourLead time = 30 hoursContainer capacity = 1,200 unitsSafety stock = 15%
What is the takt time for a production system that operates one shift given the following information:Total time per shift = 480 minutesCoffee breaks = two 20-minute breaks per shiftLunch break = 1
Sprinkman Inc., a fictional supplier of instrument gauge cluster housings, is planning to use a Kanban control system to control material flow. The first step in this process is to calculate the takt
Give an example for each of the four categories of purchases presented in Figure 10.3 for a company like Apple. What sourcing strategy would you use for each of these purchases?
Suppose you have been hired to improve a hospital layout. Choose any nine departments of the hospital, and develop a Muther’s grid for them. Explain your preferences for rating the relationships
Refer to Solved Problem 9S.3. Suppose production requirements dictate that the cycle time be reduced from 12 to 11 minutes. Using the data given in the table in Solved Problem 9S.2, rebalance the
An assembly line with 16 tasks needs to be balanced. The line operates 7 hours a day, and the desired daily output rate is 70 units. The total time for all the 16 tasks is 38 minutes:1. What is the
Prepare a service blueprint for a local hair salon.
Create a process chart for course registration at your university.
Create a process chart for orange-juice processing.
Create an assembly chart for putting together a McDonald’s Big Mac.
RanBaxy Pharmaceuticals Inc. (subsidiary of SUN PHARMA Company, Princeton, NJ) is currently manufacturing a drug that has a variable cost and selling price of $1.20 per unit $2.00 respectively (in
The effective capacity of the loan processing department of the fictional Union City Bank is only 60% of design capacity, and the actual output is 85% of effective capacity. If the bank desires an
The design capacity at the fictitious Quick Lube service bay is 8 cars per hour. If the effective capacity and efficiency of a Quick Lube service bay are 6 cars per hour and 0.78, respectively, how
The Sam & Irene Black School of Business at Penn State Erie, The Behrend College, has the facilities and faculty to accommodate an enrollment of 1,500 new students per academic year. Yet, to maintain
A company that manufactures soft drinks wants to assess the capacity performance of its production line. The system has a design capacity of 100,000 bottles per 8-hour shift. Due to maintenance
A company that manufactures hydraulic pumps buys valves from a supplier in China. The Chinese supplier has submitted the company with a new valve and claims that it will improve the efficiency of the
The mythical Prime Meridian Hotel has been receiving an unusually large number of complaints from customers staying overnight in the hotel in the past month. Prepare a cause-and effect diagram for
Prepare a process flowchart for actions to be taken in an academic dishonest process. Your process flowchart should include the following items: cheating/plagiarism is suspected; the professor
Construct a house of quality matrix for Southwest Airlines.
Construct a simple house of quality matrix for a table lamp. Begin by identifying (in your opinion) what attributes customers would want in a table lamp. Then complete the house of quality matrix to
Construct a house of quality for a pair of expensive designer sunglasses. Make sure to identify some features that you think someone interested in buying such sunglasses would expect. Then complete
Pick a new product and use the Stage-Gate® system to outline how you would integrate sustainability into the product’s development.
stationery. The job shop hires 10 workers, and each worker is paid US$15 per hour. During the third week of July, the 10 workers together produced 150 units of printed stationery. Each worker during
Why is a "Black Swan crisis" technically impossible?
If an event is unforeseeable, how can a good contingency plan help?
In disaster planning, which is more important, mitigation or response? Why?
How do robustness and redundancy relate to biomimicry, the copying of design principles from natural systems?
How does Voltaire's quote, "the perfect is the enemy of the good," relate to the well- known problem, "paralysis of analysis"?
If an organization deliberately tolerates a possibility of loss, is this possibility a stra- tegic or an external risk?
Consider three organizations, one operating during an emergency, one during a cri- sis, and one during a disaster. By definition of the three terms, which organization has the best potential to stop
If a company considers 10 different future states of nature to be equally likely, and each of the 10 has a different value, how can that company calculate the expected value?
Is disruptive innovation more likely to create an emergency or a crisis?
A manager assumes an unlikely request in an order must be the result of some unusual customer. Is this an example of outcome bias or normalization?
Someone complains about a supplier who makes mistakes and a manager shrugs and says, "At least they're consistent." Did the manager just comment on the reli- ability or the robustness of the
Does increasing system complexity without increasing redundancy then increase or decrease system reliability?
Does increasing redundancy increase or decrease reliability?
Does increasing redundancy increase or decrease overall utilization of the system?
Which requires improvisation-business impact analysis or bricolage?
Is the newsvendor problem an example of overbooking or yield management?
If a group of people stop the discussion of an important decision for fear of an argu- ment between two members, the outcome of that decision is in danger of suffering from what?
There is a 60% chance of sales of 1 million, a 30% chance of sales of 2 million, and a 10% chance of sales of 3 million. What is the expected value of sales?
A chance event can result in three future states of nature, the first two states having a probability of 20% each. What is the probability of the third future state of nature?
An operation consists of two steps, the first of which has a reliability of 97 % and the second a reliability of 99%. What is the reliability of the operation?
An operation consists of two steps, the first of which has a reliability of 97% and the second a reliability of 99%. What is the probability that the operation will fail?
A component has a reliability of 98% and is backed up by a redundant component with the same probability. What is their combined reliability?
A processer has a 10% probability of freezing, at which point an identical backup processor is activated. What is the probability they both freeze?
There is a 60% chance of a loss of $100, a 30% chance of sales of $100, and a 10% chance of sales of $200. What is the expected value of sales?
An ambulance generally transports between one and eight patients a day. If the ambulance crew reports no particular pattern within that range, what is the expected value of the daily number of
You are the supervising manager for the 6 p.m. to 2 a.m. shift at a hotel. At 1 a.m. your maintenance crew chief reports the strong smell of something burning in the third-floor corridor. However, no
A single ambulance is generally available 70% of the time. If three ambulances are stationed in a service area, what is the reliability of ambulance service? In other words, what is the probability
The online order system for a pizza delivery service has just informed the pizza kitchen of an order for 333 pizzas to be delivered to a nearby residential address. The kitchen crew is surprised by
The Arms Hotel has 56 rooms. A rented room represents \($150\) in profit, while turn- ing away a customer who made a reservation (but the Arms Hotel did not have a room available) costs \($100\).
Damon Telecom is designing a new workhorse satellite to eventually replace all the orbital satellites it manages in its telecommunication network. The design of this satellite consists of five
Atlantic Air operates a low-cost passenger airline fleet of identical airplanes that provide 156 coach class seats each. Atlantic Air serves small airports through a hub-and-spoke network in which
Merchant Real Estate Trust (MRET) buys and develops property for long- term rental to clients such as restaurant chains and department stores. MRET is interested in acquiring land near Exit 44 of
Brightland Tech manufactures computer control boards for other manufac- turers of consumer goods such as microwave ovens, toys, and flat screen monitors. Brightland's product is intended for finished
Recall from Chapter 1 that Convex Productions produces full-length motion pictures for distribution worldwide. Convex has just purchased the rights to a movie script entitled Native Sun, which it
A system held inventory to protect it from uncertainties in supply. In an effort to be lean, this inventory is used and not replaced, although the uncertainties in supply remain unchanged. What is
Why is vendor-managed inventory considered a lean practice? Does VMI reduce inventory?
Why does Toyota's kanban formula contain a safety factor? When is it appropriate for X to be a smaller value? When should it be a larger value?
Just as lean systems are also called just-in-time systems, earlier approaches to inven- tory control are sometimes called just-in-case systems. The phrase just-in-case refers to what?
The emergence of JIT and lean operation are relatively recent when compared to other styles of production and inventory control, but what exactly is new about JIT/ lean? What are its defining
What does the lean principle of level scheduling imply about finished goods inven- tory? Is this a contradiction to the philosophy of lean?
Does lean operation rely on implicit or explicit production planning?
Is a lean operation considered a push or a pull system?
Does lean operation rely more on precise calculations or reaction to signals?
Push versus pull refers to pushing or pulling what?
Muda is another term for what?
In a dual card kanban system, one kind of card represents permission to produce. What does the second type of card represent permission to do?
What does reducing the number of kanban cards circulating in a single card kanban loop reduce?
Lean refers to less what?
An employee says, "I've got to get back to work now. I've got to calculate how many of each kind of part the factory needs to make next week. Then I've got to fill out all those work orders and make
What is the ideal order size in a lean/JIT environment?
Revising a process such that its desired outcome is the only outcome possible, also known casually (and rather inaccurately) as "dummy proofing" or "mistake proof- ing," is a principle known formally
Will implementing leaner practices likely increase or reduce the frequency of order- ing materials?
The usage rate D of a component is 200 an hour, the lead time L on a container of the component is 1 hour, and each container holds 110 components. Assum- ing a policy variable X of 0.10, how many
The usage rate D of a component is 200 an hour, the lead time L on a container of the component is 1 hour, and each container holds 22 components. Assuming a policy variable X of 0.10, how many
The usage rate D of a component is 200 an hour, the lead time L on a container of the component is 1 hour, and each container holds 22 components. Assuming a policy variable X of 0.21, how many
Five hundred of part A and 2,000 of part B are used annually. If the job shop that creates and uses these parts operates 250 working days a year, level scheduling requires the shop to create how many
An item arrives for processing at an average rate of 200 items an hour (), where each item spends an average of 30 hours (W) being processed. On average, how many items are in the processing system?
An item arrives for processing at an average rate of 200 items an hour (X), where each item spends an average of 30 minutes (W) being processed. On average, how many items are in the processing

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