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operations management
Questions and Answers of
Operations Management
Rain Shower is an international supplier of umbrellas. Currently, the company uses a logistical provider to provide warehouse services and handle packages destined for ground delivery. The contract
At the Pinnacle Enterprise, a UK-based consulting firm, management was discussing the potential of outsourcing the process of handling customer calls and complaints to Relax, an international
A food processing firm makes chocolates by growing its own cocoa. The firm is considering contract farming to outsource the production of cocoa to a dedicated farming company. Currently, the annual
The new Health-Watch facility is targeted to serve seven census tracts in Erie, Pennsylvania, whose latitudes and longitudes are shown in Table 13.1, along with the population in each census tract
The following coordinates are the locations of different warehouse facilities of an e-commerce retailer: (15,15), (40,5), and (40,50). The coordinates are in kilometers.a. Calculate the Euclidean
As the world’s largest automotive company and fourth-largest tire manufacturer, Continental’s global business operations cover a diverse set of enterprises. Perhaps best known for its passenger
The operations manager for Mile-High Lemonade narrowed the search for a new facility location to seven communities. Annual fixed costs (land, property taxes, insurance, equipment, and buildings) and
London, New York, Tokyo, Singapore, and Shanghai are some of the world’s largest cities. Discuss from a logistical perspective the reason behind the success of these cities?
The Arid Company makes canoe paddles to serve distribution centers in Worchester, Rochester, and Dorchester from existing plants in Battle Creek and Cherry Creek. Arid is considering locating a plant
An electronics manufacturer must expand by building a second facility. The search is narrowed to four locations, all of which are acceptable to management in terms of dominant factors. Assessment of
A milk processing factory is investigating which locations would best position its new plant relative to three important retail customers (located in cities A, B, and C). As shown in the table, all
A television manufacturer in Seoul plans to export television sets to India through either Chennai or Visakhapatnam ports. It has distribution centers in Bhopal, Mumbai, and Hyderabad and will ship
Golf Bar wants to open a new indoor golf center for the busy working professionals of London Borough. It, however, has only enough capital to build one facility. Golf Bar wants it to be centered by
Thiru is a coconut oil extraction company based in Chennai, India. Management is considering four locations for a new plant: Trichy, Villupuram, Thiruvannamalai, and Nagapattinam. Annual fixed costs
Green Paper Recycling manufactures paper plates and cups from recycled paper and cardboard. The company has narrowed its potential choices for its new manufacturing facility to four cities in France.
Balaji Limited manufactures and markets spare parts for agricultural machineries, which it stocks in various warehouses throughout the country. Most of the machineries it supports are reaching the
Wang Lei and Li Mei Cai are newlyweds trying to decide among several available rentals. Alternatives were scored on a scale of 1 to 5 (5 = best) against weighted performance criteria, as shown in
Cleveland Clinic, a nonprofit multispecialty medical center based in Cleveland, Ohio, has a vast operational footprint that spans the globe. With an annual operating budget of nearly $11 billion, its
John Wolf, president of Wolf Motors, just returned to his office after visiting the company’s newly acquired automotive dealership. It was the fourth Wolf Motors dealership in a network that served
Eagle Electric Repair is a repair facility for several major electric appliance manufacturers.Eagle wants to find a low-cost supplier for an electric relay switch used in many appliances.The annual
Suppose you are a retailer of fashion apparel meant for young professionals working in London. To keep costs down, you design the apparel in London and get it manufactured in Bangladesh and buy in
Eagle Electric Repair wants to select a supplier based on total annual cost, consistent quality, and delivery speed. The following table shows the weights management assigned to each criterion (total
The inclusion of a disruptive technology in a firm’s supply chain puts pressure on supply chain integration and has implications for how the four core processes are managed. Explain how blockchains
Schneider Logistics Company has built a new warehouse in Columbus, Ohio, to facilitate the consolidation of freight shipments to customers in the region. George Schneider must determine how many
Greenstreets Recycling, Inc., collects used motor oil from several collection sites around the Greater Stanford area. To minimize the use, and thereby the cost, of its labor, vehicle, and energy
Kayco Stamping in Fort Worth, Texas, ships sheet metal components to a switch box assembly plant in Waterford, Virginia. Each component weighs approximately 25 pounds, and 50 components fit on a
Jucio, an orange juice manufacturer in Liverpool, UK, imports fresh oranges from Spain. Jucio imports 6,000 pounds of fresh orange every week and its freight classification is 85. The company
New business and subscription models are emerging in e-commerce such as the one followed by JustFab. The company’s style experts are able to handpick shoes and handbags for each customer on the
Mulan sells liquid detergents to hotels, hospitals, and individual customers through a network of retailers and wholesalers. To reduce environmental impact, the company is considering selling
The owner of a small manufacturing business has patented a new device for washing dishes and cleaning dirty kitchen sinks. Before trying to commercialize the device and add it to his or her existing
Herron Company is screening three new product ideas: A, B, and C. Resource constraints allow only one of them to be commercialized. The performance criteria and ratings, on a scale of 1 (worst) to 10
Adele Weiss manages the campus flower shop. Flowers must be ordered three days in advance from her supplier in Mexico. Although Valentine’s Day is fast approaching, sales are almost entirely
A photographer takes passport pictures at an average rate of 20 pictures per hour. The photographer must wait until the customer smiles, so the time to take a picture is exponentially distributed.
Two nurses at Northwood Hospital’s Cardiac Care Unit are assigned to care for eight patients. Nurses are responsible for administering medication, taking vital signs, and responding to frequent
Peachy Keen, Inc., makes mohair sweaters, blouses with Peter Pan collars, pedal pushers, poodle skirts, and other popular clothing styles of the 1950s. The average demand for mohair sweaters is 100
The Nutmeg Corporation produces three different products, each in a 1-pound can: Almond-Lovers Mix, Walnut-Lovers Mix, and the Thrifty Mix.Three types of nuts are used in Nutmeg’s products:
A problem often of concern to managers in processing industries is blending. The Nutmeg Corporation, from Problem 15, is considering a new product it intends to sell to active and health-concerned
Continuing Problem 2, now assume that Carlton is permitted to employ some uncertified, part-time instructors, provided they represent no more than 15 percent of the total workforce hours (regular,
Revisit Example 10.3, in which the consulting company has five jobs in its backlog. Data from Example 10.3:Create a schedule using the EDD rule, calculating the average days past due and flow time.
A shipyard services ships and makes it seaworthy as per the regulations. Management schedules overtime during periods of high demand to reduce backlog. The following ships need to be scheduled for
The MPS start quantities for product A calls for the assembly department to begin final assembly according to the following schedule: 100 units in week 2; 200 units in week 4; 120 units in week 6;
Currently a company that designs online instructional courses has five customers in its backlog. The day when the order arrived, processing time, and promised due dates are given in the following
Zenith Printers specializes in printing wedding cards, business cards, corporate brochures, and marketing leaflets. The company serves a wide range of commercial and noncommercial clients. Due to the
Founded in 1921 by four physicians with a mission to provide better care for the sick, investigate patient problems, and further educate those who serve, Cleveland Clinic is one of the world’s most
The order policy is to produce end item A in lots of 50 units. Using the data shown in Figure 11.24 and the FOQ lot-sizing rule, complete the projected on-hand inventory and MPS quantity rows. Then,
Gömböc shapes are interesting mathematical shapes attracting attention from mathematics enthusiasts. These blocks involve a complex manufacturing and molding process. A manufacturer is evaluating
What improvement can you make in the process shown in Figure 2.17?Data from Figure 2.17: Process: Subject: Beginning: Ending: Step No. 6719GAWN1 2 3 4 5 8 10 11 18922 Changing engine
A new optical reader for scanning documents is being considered by a retail bank. The new system has a fixed cost of €30,000 per year and a variable cost of €2.5 per batch. The cost of the new
Security devices are becoming increasingly high-tech. Most offices and similar buildings have simple security devices such as ‘swipe cards’ that admit only authorized people to the premises.
Towards the end of the 1990s, much of the European retail banking industry was facing unprecedented levels of competition.This was partly the result of excess capacity (many towns had four or more
How would you evaluate the design of this book?
Look back at the worked example on page 131 which described the component structure and process for a new healthcare service.(a) Try to write down a statement which encapsulates the ‘concept’ of
Chatsworth House, the home of the 12th Duke and Duchess of Devonshire, is one of the finest and most palatial houses in the UK, set in over 1000 acres of parkland in the Peak District National Park,
Re-examine the worked example that describes the new service being offered by the Activo Health Club and draw a quality function deployment (house of quality) diagram that links what the health club
One product where a very wide range of product types is valued by customers is domestic paint. Most people like to express their creativity in the choice of paints and other home-decorating products.
A company is developing a new website that will allow customers to track the progress of their orders. The web site developers charge €10,000 for every development week and it is estimated that the
Design becomes particularly important at the interface between products or services and the people who use them. This is especially true for internet-based services. Consider two types of website:(a)
How can the concept of modularization be applied to package holidays sold through an on-line travel agent?
Visit the website of the UK's Design Council (www.design-council.org.uk). There you will find examples of how design has provided innovation in many fields. Look through these examples and find one
Visit the websites of companies that are in the paper manufacturing/pulp production/packaging industries. Assess the extent to which the companies you have investigated are vertically integrated in
A company which assembles garden furniture obtains its components from three suppliers. Supplier A provides all the boxes and packaging material; supplier B provides all metal components; and
'I really can't decide whether it is worth moving from our current location. The lease still has many years to run, so staying where we are is a very real option. The last site that the agents
Visit sites on the internet that offer (legal) downloadable music using MP3 or other compression formats. Consider the music business supply chain, (a) For the recordings of a well-known popular
Draw the component structure and process chart for a visit to the hairdressers.
How can the design of quick-service restaurant (fast-food) products and services be improved from the point of view of environmental sustainability? Visit two or three fast-food outlets and compare
A company is deciding between two locations (Location A and Location B). It has six location criteria, the most important being the suitability of the buildings that are available in each location.
DSF is a small but technically successful company in the man-made fibre industry. The company is heavily dependent on the sales of Britlene, a product it developed itself, which accounted in 1996 for
Revisit the short case on how locations in developing nations are challenging the dominance of more traditional Western locations for high-tech research and manufacturing, most notably Silicon Valley
A rapid-response maintenance company serves its customers who are located on four industrial estates. Estate A has 15 customers and is located at grid reference (5,7). Estate B has 20 customers and
Tesco.com is now the world's largest and by far the most profitable online grocery retailer. In 1996 Tesco.com was alone in developing a 'store-based' supply network strategy which entailed using its
An analytical laboratory has current revenues of £300,000 and its sales forecasts indicate that business is likely to grow by £100,000 per year for the next eight years. The laboratory's costs are
Weldon Hand Tools, one of the most successful of the European hand tool manufacturers, decided to move into the 'woodworking' tools market. Previously its products had been confined to car
A laboratory has six departments (A to F). Trays of samples move between the departments according to the information in Figure 7.27. This also indicates the space required by each department. Devise
A private healthcare clinic has been offered a leasing deal where it could lease a CAT scanner at a fixed charge of €2000 per month and a charge of €6 per patient scanned. The clinic currently
A printer is considering purchasing some new high-tech machines. These machines have a capacity of 6000 units per week, a fixed cost of €2000 per week, and a variable cost of €0.5 per unit. The
Sketch the layout of your local shop, coffee bar or sports hall reception area. Observe the area and draw onto your sketch the movements of people through the area over a sufficient period of time to
Visit a supermarket and observe the people who staff the checkouts.(a) What kind of skills do people who do this job need to have?(b) How many customers per hour are they capable of
Step 1 - Make a sandwich, any type of sandwich, preferably one that you enjoy and document the tasks you have to perform in order to complete the job. Make sure you include all the activities, not
A hotel has two wings, an east wing and a west wing. Each wing has four 'room service maids' working sevenhour shifts to service the rooms each day. The east wing has 40 standard rooms, 12 deluxe
A little-known department of your local government authority has the responsibility for keeping the area's public lavatories clean. It employs ten people who each have a number of public lavatories
An operation assembling PCs receives components from its suppliers and assembles their products according to customer demand. Although there are many different combinations of components, and
You are employed by a public relations company to text messages to selected clients. You are given a list of names and have to text the following message. 'Hi there . . . (insert name here) . . . did
Air traffic controllers have one of the most stressful jobs in the world. They are responsible for the lives of thousands of passengers who fly in and out of the world's airports every day. Over the
Visit a dance club, bar or pub that has live music or any other similar entertainment venue.(a) How would you manage the environment to ensure the wellbeing and safety of staff?(b) How would you
A new machine requires an investment of €500,000 and will generate profits of €100,000 for ten years. Will the investment have a positive net present value assuming that a realistic interest is 6
Step 1 – Make a list of all the jobs you have to do in the next week. Include in this list jobs relating to your work and/or study, jobs relating to your domestic life, in fact all the things you
Revisit ‘Operations in practice’ at the beginning of the chapter which explained how one car dealership planned and controlled its workshop activities. Try to visit a local car servicing
A sandwich manufacturer must order the food materials that make up the sandwiches three days before they are needed by the factory. When these raw materials arrive, they are in stock for, on average,
From your experience of making appointments at your general practitioner’s surgery, or by visiting whoever provides you with primary medical care, reflect on how patients are scheduled to see a
In 2003, Charles and Gillian Giles decided to open up their farm to the paying public, in response to diminishing profits from their milk and cereals activities. They invested all their savings in
A specialist sandwich retailer must order sandwiches at least eight hours before they are delivered. When they arrive in the shop, they are immediately displayed in a temperature-controlled cabinet.
Step 1 - Read the following descriptions of two cinemas.Kinepolis in Brussels is one of the largest cinema complexes in the world, with 28 screens, a total of 8,000 seats and four showings of each
The Dagenham Chow-Mein Pizza Company has a demand forecast for the next 12 months which is shown in Table 11.5.The current workforce of 100 staff can produce 1000 cases of pizzas per month.(a)
A specialist gourmet sandwich chain (similar to the Prêt A Manger organization described in Chapter 1) places orders for the bread and filling materials for its sandwiches the day before they are
Look again at the principles which govern customers’ perceptions of the queuing experience. For the following operations, apply the principles to minimize the perceived negative effects of
Trans-European Plastics (TEP) is one of Europe's largest manufacturers of plastic household items. Its French factory makes a range of over 500 products that are sold to wholesalers and large
Consider how airlines cope with balancing capacity and demand. In particular, consider the role of yield management. Do this by visiting the website of a low-cost airline and for a number of flights
A local government office issues hunting licences. Demand for these licences is relatively slow in the first part of the year but then increases after the middle of the year before slowing down again
Calculate the OEE of the following facilities by investigating their use:(a) A lecture theatre.(b) A cinema.(c) A coffee machine.Discuss whether it is worth trying to increase the OEE of these
A field service organization repairs and maintains printing equipment for a large number of customers. It offers one level of service to all its customers and employs 30 staff. The operation’s
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