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business
operations management
Questions and Answers of
Operations Management
What should an operations manager keep in mind when looking at the results from a simulation model?
The number of cars arriving at Mark Coffin’s self service gasoline station during the last 50 hours of operation are as follows:The following random numbers have been generated: 44, 30, 26, 09, 49,
Why is it a good reason using a cumulative distribution as an input into a Monte Carlo simulation model?
Woodworth Property Management is responsible for the maintenance, rental, and day-to-day operation of a large apartment complex in El Paso. Bruce Woodworth is especially concerned about the cost
A nail salon is deciding if appointing an additional manicurist will be financially feasible. Today, the nail salon has three manicurists, only one of whom is by appointment and the other two for
How many times do you need to run a Monte Carlo simulation to achieve an appropriate model? Why does it differ from model to model?
Describe the three categories of business analytics.
Describe the three major issues for data management and clean data.
What are some ways to use Excel to clean data?
Describe the three paths of data mining.
Thompson Industries’ supply chain manager, Xun Xu, wishes to identify suppliers with the largest and smallest purchase levels, so he knows where to focus his purchasing resources. He suggests that
Thompson Industries’ supply chain manager, Xun Xu, wishes to understand the makeup of his supply base better. He suggests that you, using the data in Figure G.5, use Excel to create a PivotTable
Describe the purpose of a heat map.
Thompson Industries’ CEO, Gihan Edirisinghe, wishes to identify the top-performing suppliers to present with a performance award. He suggests that you, using the data in Figure G.5, use Excel to
Thompson Industries’ supply chain manager, Xun Xu, wishes to better understand the quality and on-time performance of his supply base. He suggests that you, using the data in Figure G.5, use Excel
Operations manager Phil Witt wishes to apply the Blue – White – Red color scale using Excel’s Conditional Formatting to the following data:a) Which plant will be colored the darkest shade of
A small electronic manufacturing company that makes communication devices has determined its costs as follows (all value data are expressed in millions euro):a) Calculate and compare all
What are some career opportunities in the operations management discipline?
As an operations management student, you have been hired by a local restaurant to perform a factor-rating analysis to help the restaurant choose an outsourcing provider. You have identified three
“The reasons for failure in productivity are cost reduction programs, which produce narrowness of vision. We must first let go of old-fashioned productivity as a goal: instead, we must set a new
You are about to establish your own business; your strategy is to focus on your core business and outsource the customer service to an external service provider to handle the customers’ requirement
Discuss the overlap amongst operations, marketing, and finance—the three functions basic to all organizations—for small and medium enterprises.
An air conditioner factory makes three different types of air conditioners: the ceiling type, the cassette type, and the wall-mounted type. Weekly sales of each type are 2, 4, and 6 units at a price
What is competitive advantage and what is the theory of comparative advantage?
What are the implications for operations management with respect to the following organizational strategies: (1) Low price, (2) Good quality, (3) Response, (4) Innovation, (5) Variety, and (6)
When is the application of a multi-domestic strategy most appropriate? What kind of industries can this be applied to?
You are the project manager for a project in which you are going to organize a conference. Develop a work breakdown structure (WBS) in the form of a hierarchical framework, similar to the one in
Can the operations function on its own provide competitive advantage?
Potamia Construction Co. (PCC) is developing plans to erect a new hospital building. Potamia Construction Co. has established the project activities and their immediate predecessor activities
Explain, citing appropriate examples, how flexibility saves time and stimulates response.
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. ACTIVITY A B C
Read about Zara, the Spanish fashion retail company, and explain what is the best descriptive of Zara’s strategy approach. Explain some key operations management decisions that help Zara implement
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
A project has the following activities, precedence relationships, and activity durations. Draw the AOA project network. How long would it take to complete this project? What is the length of the
Draw the AON project network using the following information:How long would it take to complete this project? Which activities are included on the critical path?
What is a project and why is it important is to understand the project environment?
The following represent activities in Marc Massoud’s Construction Company project.a) Draw the network to represent this situation.b) Which activities are on the critical path?c) What is the length
Draw the AON project network using the following information:a) Draw an AON diagram of the project, including activity durations.b) Define the critical path, listing all critical activities in
What are the ethical dilemmas that project managers are faced with when dealing with projects?
Given the project diagram that follows, see graph (a) and the details of the accompanying table. How can you reduce the completion time of the project by 4 weeks in the most economical way?
While numerous trade-offs may be required during the life cycle of a project, the trade-offs between cost, time, and performance are considered essential. Discuss.
Janice Eliasson must complete the activities in the following table to finish her consulting project.a) Draw the appropriate PERT diagram.b) Find the critical path and project completion time.c) Find
A local retailer is thinking of using exponential smoothing to forecast one of his well-selling products. His problem is that he is not sure if he should use a low or a high value of a. For this
Compare and contrast the Project Evaluation and Review Technique (PERT) with the Critical Path Method (CPM).
What is the difference between the waterfall approach and agile project management?
A logistics company has been in business for 4 years and wants to develop monthly indices. Monthly inventory quantities for these years are shown in the table below.a) Develop monthly indices.b)
What type of forecasting method would you recommend to a start-up retailer in terms of quantity, number of products, etc.? Would you use the same method after, say, 5 years of operation? Explain.
A warehouse manager wants to estimate the inventory moving in and out of his warehouse each week. An analyst suggests using a 3-, 5-, or 7-week moving average. However, before deciding, he wants to
Calculate (a) MAD and (b) MSE for the following forecast versus actual sales figures. FORECAST ACTUAL 100 95 110 108 120 123 130 130
How can an exponential smoothing model be made more responsive?
Given the following data, use least-squares regression to derive a trend equation. What is your estimate of the demand in period 7? In period 12? PERIOD DEMAND 1 7 2 9 m 5 4 11 5 10 6 13
The director of the Riley County, Kansas, library system would like to forecast evening patron usage for next week. Below are the data for the past 4 weeks:a) Calculate a seasonal index for each day
If the benefits of implementing CPFR are so evident, why are companies reticent to commit to this concept?
Registration numbers for an accounting seminar over the past 10 weeks are shown below:a) Starting with week 2 and ending with week 11, forecast registrations using the naive forecasting method.b)
Summarize in the form of a table the (a) Characteristics, (b) Strengths, and (c) Weaknesses of the following qualitative methods: (i) Jury of executive opinion, (ii) Delphi method, and (iii) Market
The following multiple regression model was developed to predict job performance as measured by a company job performance evaluation index based on a preemployment test score and college grade point
Kalamia Company tries to forecast the value of its business based on money spent on advertising. The company has been tracking the relationship between sales and money spent on advertising,
A careful analysis of the cost of operating an automobile was conducted by accounting manager Dia Bandaly. The following model was developed:^y = 4,000 + 0.20xWhere ^y is the annual cost and x is the
A study to determine the correlation between bank deposits and consumer price indices in Birmingham, Alabama, revealed the following (which was based on n = 5 years of data):a) What is the equation
The accountant at Bintong Chen Coal Distributors, Inc., in Newark, Delaware, notes that the demand for coal seems to be tied to an index of weather severity developed by the U.S. Weather Bureau. When
Given the following data, use least-squares regression to develop a relation between the number of rainy summer days and the number of games lost by the Boca Raton Cardinal baseball team. YEARS RAINY
The table below compares the accuracy of two forecasting methods used by company XYZ to forecast its monthly sales of one of its product. The data pertain to the forecast and actual sales levels over
Perform a “product-by-value” analysis on products A, B, C, D, and E. Unit Contribution Total Contribution A B с D $0.75 $0.33 $1.25 $0.85 E $0.75 $63,000 $82,000 $95,000 $115,000 $57,000
A company is investigating the make-or-buy decision for a new item with the following cost structure:a) At what volumes would each decision be preferred?b) What is the most economical decision for a
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?
How can the voice of the customer be incorporated in the design of products and services?
Prepare a bill of material for the table illustrated: Left side Front Table top Back Right side Nut Casters Bracket Top of leg Washer Bolt
Develop the BOM for product XYZ made from two units of B, five units of C, and four units of D. B is sub-assembled from six units of E and two units of F; C from four units of E and three units of D,
Prepare a bill of material and an assembly chart for a salad of your own choosing.
Prepare a bill of material for a wooden pencil, complete with eraser.
Describe several applications of virtual reality in product design.
Identify three products or services that employ:a) Interchangeabilityb) Standardizationc) Modular design
Draw a fish-bone chart showing why an assistant you paid to prepare a spreadsheet produced one with numerous errors.
Choose criteria for a checklist to identify the quality problems (possible defect issues) for manufacturing shirts and blouses.
Identify and explain six quality inspections in a service with which you have had some experience.
What is process strategy?
What is service blueprinting?
What is process redesign?
Brazil’s fast-growing economy has been largely dependent on its freight transport capacity. A recent study has categorized the country’s containership sea port terminals into three distinct
What is additive manufacturing?
Jaguar Land Rover opened its first plant in China in 2014. Discuss the main reasons behind this decision.
24SEVEN convenience store, which opened its first store in New Delhi’s Lajpat Nagar in 2005, presently operates 38 round-the-clock stores in India’s capital region. Assume that the chain is
Review the location of shops and services in your local shopping center. Can you find examples of clustering in the retail sector?
What factors affect region/community location decisions?
Katie Reynolds owns two exclusive women’s clothing stores in Miami. In her plan to expand to a third location, she has narrowed her decision to three sites—one in a downtown office building, one
How can the center-of-gravity method be used to find the best locations for local services such as public libraries, medical centers, or post offices? What constraints should be considered when the
When placing a new medical clinic, the county health commissioner, Vicky Luo, wishes to consider three sites. The pertinent data are given in the following table. Which is the best site (assuming a
Distribution centers have a key role in ensuring quick home delivery of products in online sales. What techniques can be employed by retailers to select the best locations for their distribution
A Detroit seafood restaurant is considering opening a second facility in the suburb of West Bloomfield. The following table shows its ratings of five factors at each of four potential sites. Which
The fixed and variable costs for four potential plant sites for Brent Snyder’s Ski Supplies are shown here:a) Graph the total-cost lines for the four potential sites.b) Over what range of annual
The fixed and variable costs (in U.S. dollars) for the new recycling plant that Eldon Yi is opening in Australia are computed as follows:a) Over what range is each city preferable?b) For a recycling
Xun Xu Health and Fitness has several production facilities scattered around the central and northern part of Iowa. It would be desirable to have a distribution center from which to send product to
The main post office in Tampa, Florida, is due to be replaced with a much larger, more modern facility that can handle the tremendous flow of mail that has followed the city’s growth since 1970.
A manufacturing firm in Saudi Arabia has four work centers arranged in the following order:Plan A (Existing Layout).The number of workpieces moved between the four work centers are shown in the table
A job shop in the new industrial area of Six of October, Egypt, wants to arrange four work centers to minimize the interdepartmental material-handling cost. The flow and the current layout are shown
A large equipment manufacturer uses five adjacent work centers to manufacture its equipment. The distance between any two adjacent work centers is 100 meters. The number of daily trips between the
How is process layout applied to supermarkets layout? What are the advantages and disadvantages of this type of layout for customers?
A medical center located in Kuwait has the following layout. Each department is nearly 10 × 15 meters.The average number of patients moving among the different departments per day is shown in the
What are the main requirements of work cells?
Ten basic tasks must be performed on an assembly line to manufacture a product. The demand for the product is 60 units per day and the line is available 8 hours per day. The time to perform each task
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