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business
operations management

Questions and Answers of Operations Management

You observe a bank and notice that a customer leaves the bank about every five minutes. These five minutes between customers are a. The capacity of the process. b. The processing time of
You observe a long line at the airport security. The process currently is a. capacity-constrained. b. demand-constrained. c. unconstrained. d. linearly constrained.
What is the relationship between the processing time at a resource and its capacity? a. They are the same. b. They are reciprocals of each other.c. They are multiples of each other. d.
You are sitting in a restaurant and the waiter brings you the food you ordered a while ago. If you think about you being the flow unit in the process of the restaurant, which step of this process
Which of the following items would be considered resources in a restaurant? a. Recipes b. Food c. Brand image d. Chefs
Which of the following questions would be asked in a process analysis of a college admissions office? a. When was the college founded? b. How long does it take the office to process an
Who do you think is correct, Mark (the unload capacity should be twice as high) or Doug (the two lifts have the same capacity)? Can you give a response to Jessica—is there any other difference
The small architectural firm Streefkerk designs and manages various home construction projects. Each project requires on average 18 months to complete and earns $60,000 for Streefkerk. How many
The hospital has 50 beds, and on average 40 are occupied. On average, 30 patients are discharged from the hospital each day. What is the average length of stay (days) for a patient at this hospital?
During the Eagles Super Bowl victory parade there were on average 700,000 people on the Ben Franklin Parkway. The event lasted 4 hours. Each person spent on average 2.5 hours at the event. What was
A consulting company must hire 15 new associates per year to replace those who have left the company for other positions or have retired. The company employs 120 associates overall. How long is the
CodeDeskInc matches programmers with freelance jobs. It has 30 employees who staff its online chat room. It receives, on average, 240 chat requests per hour, and the average chat session takes 5
Patients take a drug for severe acne for 6 months and there are 150,000 new patients each month. How many patients are taking this drug on average at any given time?
Last year, there were 3,400,000 visitors to a national park and, on average, each visitor spent 22 hours in the park. Last year, on average, how many visitors were in the park simultaneously?
One of the chair lifts at a ski resort unloads 1800 skiers per hour at the top of the slope. The ride from the bottom to the top takes 12 minutes. How many skiers are riding on the lift at any given
A Rhode Island company produces communion wafers for churches around the country and the world. The little company produces a lot of wafers, several hundred million per year. When in production, the
A campus deli serves 300 customers over its busy lunch period from 11:30 a.m. to 1:30 p.m. A quick count of the number of customers waiting in line and being served by the sandwich makers shows that
Based on the data provided in Table 2.6, what is the flow time of customers from 3:30 p.m. to 4:00 p.m.? TABLE 2.6 Call Center's Log from 3:30 p.m. to 4:00 p.m. Caller ID Time spent (min) in
Based on the data provided in Table 2.6, what is the flow rate of customers from 3:30 p.m. to 4:00 p.m.? TABLE 2.6 Call Center's Log from 3:30 p.m. to 4:00 p.m. Caller ID Time spent (min) in
Based on the data provided in Table 2.5, what is the flow time of customers from 9:00 a.m. to 10:00 a.m.? TABLE 2.5 Time Stamps of 10 Customers Who Visited a Local Bank Branch from 9:00 a.m. to 10:00
Based on the data provided in Table 2.5, what is the flow rate of customers from 9:00 a.m. to 10:00 a.m.? TABLE 2.5 Time Stamps of 10 Customers Who Visited a Local Bank Branch from 9:00 a.m. to
Based on the data provided in Table 2.4, what is the flow time of callers from 8:00 a.m. to 8:20 a.m.? TABLE 2.4 Time Stamps of the 8 Callers Who Called from 8:00 a.m. to 8:20 a.m. to the
Based on the data provided in Table 2.4, what is the flow rate of callers from 8:00 a.m. to 8:20 a.m.? TABLE 2.4 Time Stamps of the 8 Callers Who Called from 8:00 a.m. to 8:20 a.m. to the
For the purpose of process analysis, which of the following measures would be considered an appropriate flow unit for analyzing the main operation of a gas station? Instructions: You may select more
For the purpose of process analysis, which of the following measures would be considered an appropriate flow unit for analyzing the main operation of a local accounting firm? Instructions: You may
For the purpose of process analysis, which of the following measures would be considered an appropriate flow unit for analyzing the operation of a coffee shop? Instructions: You may select more than
If inventory is measured in kilograms, then when applying Little’s Law the flow rate can be measured in ______ a. Units per kilogram b. Minutes per kilogram c. Kilograms per
Little’s Law is very general, so it is not necessary that flow rate and flow time use the same time units. True or false?
A computer server experiences large fluctuations in the amount of data requests it receives throughout the day. Because of this variation, Little’s Law does not apply. True or false?
Forty customers per 90 minutes is a(n) ______ a. Inventory b. Flow rate c. Flow time
Six customers enter a gift shop during a 3-hour period. On average there are 0.25 customers in the gift shop and each spends 7.5 minutes in the shop on average. Which of the following numbers is most
Over the course of a 24-hour period a call center handled 1200 different calls and at noon there were 50 callers “in” the center (talking or waiting to talk to a representative). The sixth caller
Over the course of a day, fans pour into a NASCAR venue at the rate of 8000 people per hour. The average rate at which fans leave the venue ______. a. must be less than 8000 people per
It is election day and 1800 voters vote in their precinct’s library during the 10 hours the polls are open. On average, there are 15 voters in the library and they spend on average 5 minutes in the
At a cruise ship terminal, each day on average 1000 passengers embark on ships. On average, passengers spend 5 days on their cruise before returning to this terminal. If the flow unit is a passenger,
Over the course of a month, which of the following is most likely to describe an appropriate flow unit for a process analysis of a hospital? a. The number of physicians b. The number of
From the perspective of process analysis, which of the following could be appropriate flow units for a hardware store? a. Number of workers b. Number of cash registers c. Number of
Which of the following operational decisions correspond(s) to the consumption utility component of the consumer utility function? Instructions: You may select more than one answer. a.
Which of the following operational decisions correspond(s) to the price component of the consumer utility function? Instructions: You may select more than one answer. a. When will the
Which of the following operational decisions correspond(s) to the convenience component of the consumer utility function? Instructions: You may select more than one answer. a. When will the
Which of the following inefficiencies in a bank’s operations results from variability? a. Employees entering the same information twice b. Associates reading the terms and conditions of
Which of the following inefficiencies in a grocery store’s operations results from inflexibility? a. Leftover fruits and vegetables b. Delivery delays from the warehouse c. A surge
Which of the following items would be considered a resource in the operations of a movie theater? a. Popcorn b. Projector c. Printer ink d. Soda
Which of the following items would be considered an input in the operations of a doctor’s office? a. Examination table b. Nurse c. Needle d. Stethoscope
Which of the following items would be considered a resource in the operations of a soft drink manufacturer? a. Water b. Bottling machines c. Empty bottles d. Sugar and/or
Which of the following items would be considered an input in the operations of a soft drink manufacturer?a. Brand image b. Bottling machines c. Empty bottles d. Workers
A suburb of Dayton, Ohio, has four local dry cleaners that compete with each other on the basis of price and service speed. Each of them can perform the same basic services at the same level of
Four regional less-than-truckload (LTL) carriers handle shipments traveling from Lexington, Kentucky, to Springfield, Illinois. All four companies say that their normal service time to deliver these
There are four hotels competing with otherwise very similar products on the dimensions of price ($ per night) and amenities (measured by the number of *s awarded by customer reviews). Hotel A:
A car manufacturer has designed a “special edition” version of its popular two-door coupe. This special edition has increased horsepower compared to the standard model and a sports suspension.
A national restaurant chain has just opened a sit-down location at Chicago’s O’Hare International Airport. Next to the sit-down location, it has also established a “to-go” section where
Which of the following characteristics is a subcomponent of the consumption utility in a customer utility function? a. Performance b. Location c. Timing d. Price
Custom-built windows are designed and produced for the unique needs of a particular building. Which dimension of the customer utility function is particularly emphasized with the concept of “custom
What are the subcomponents of inconvenience in a customer utility function? a. Location and price b. Price and volume c. Location and time d. Time and performance
Which of the following is most related to the operations management of an organic sheep farm? a. The color of their brand logo. b. The amount of land they rent for grazing sheep. c.
Which of the following questions is NOT related to operations management? a. When will the demand be fulfilled? b. How much will the CEO be paid? c. Who are the customers? d. How
Which of the following is an example of a system inhibitor? a. A customer adds extra weatherproofing to a new truck purchase. b. An emergency room doctor has no patients at the
Which of the following is NOT one of the three system inhibitors? a. Waste b. Variability c. Fatigue d. Inflexibility
Two retailers compete on costs and the ambience of their retail stores. They are identical in all other dimensions of customer utility. Retailer A is cheaper than retailer B. Retailer A also has the
There can be no more than two firms on the efficient frontier. True or false?
The efficient frontier is given by the cheapest company in the industry. True or false
Which of the following is not a dimension or subdimension in a customer’s utility function? a. Convenience b. Price c. Location d. Customer satisfaction e. Performance
Below are a number of slogans used for advertisement. Which dimensions of customer utility do the slogans emphasize? a. We build lenses uniquely to the needs of your eyes.b. Get your burger in 1
Search for the article, “Five Common Inventory Mistakes and How to Avoid Them” at www.entrepreneur.com.Investigate the recent history of adidas (adidas Group, Herzogenaurach, Germany) in light of
Choose a waiting line system that you commonly encounter in your daily life. How would you improve that system by using the knowledge gained from this module?
Can the structure of transportation models be applied to other operations management situations? If the answer is “yes,” provide some examples.
1. Visit a local bank and write a report on how you would use the drumbuffer- rope concept to alleviate the bottleneck problems (if any) that the bank faces in providing effective customer service.2.
Interview the registrar of your university to learn about the course scheduling process. Based on this interview, write a report on how MRP principles can beapplied to improve the efficiency of the
Visit the websites of the two major ERP vendors, SAP and Oracle, and answer the following questions.1. What are the features of SAP’s ERP system?2. What are the features of Oracle’s ORDBMS
Consider a restaurant and a manufacturer of electronic products. Discuss the advantages and disadvantages these two companies face in developing and implementing their sales and operations plans.
Use the ABC classification method to categorize the various items at a local grocery store. For example, in what category would fresh fruit and vegetables be listed? Why?
Lean production requires seven steps be taken. Why, in your opinion, should the first step be designing the process flow?
Which forecasting technique would be best for each of the following scenarios:1. The demand for Valentine’s Day greeting cards?2. The demand for ice cream during a year?3. The demand for a new
The hotel industry is highly competitive. For most companies, margins are low because of high overhead costs, which means that they have to be cost conscious and focus on keeping their rooms
What does “customer service” mean to you?
Give examples of long-term, intermediate-term, and short-term decisions made as part of demand planning. Use one manufacturing and one service organization for each example.
Discuss and distinguish the functional differences among 3PL, 4PL, and 5PL providers.
An electronics company is planning to outsource the production of the semiconductor chips needed for its products. The company has decided to adopt a multi-sourcing strategy to ensure it has
Give examples of products that can be produced using the following process types:1. Project2. Job-shop3. Batch4. Repetitive5. Continuous flow
Visit or research online a manufacturing facility and a service organization in the area where you live: 1. In terms of the product-process matrix in Figure 9.1, to which category does the
ArcelorMittal is planning to build a steel plant in India. Discuss some of the critical country, region, and site related factors the company needs to evaluate to build the plant?
Why would the location decision for a hospital be different than the location decision for a supermarket? In terms of critical success factors, what are the similarities and differences?
Discuss briefly the various aspects of capacity planning for a service facility such as a hospital.
Select a fast-food restaurant, a bank, and a hotel and identify some of the processes in each of these businesses for which control charts could be useful.
The purpose of the following exercises is three-fold. First, they are intended to make the students learn in-depth about process capability analysis. Second, they are intended to make the students
Choose an electronic service provider you have done business with, and evaluate its service quality using the four gaps we discussed.
Pick a new product, and discuss the three sustainability criteria you would look at when designing the product. Be specific.
Pick a product or service, and using the house of quality, analyze how that company meets its customers’ expectations.
Name a product or company that you believe uses the following new product development concepts or tools:1. Robust design2. Mass customization3. Design for manufacturing and assembly (DFMA)4. Quality
Think of a new product and how the Stage-Gate® system could be used to develop it.
Provide examples of products in each of the following categories that are in different stages of their life cycles:1. Televisions2. Computers3. Pharmaceuticals4. Entertainment
Discuss how reliability, maintainability, and availability are related by using an example of a product or service that you are familiar with.
One brand of The Campbell Soup Company (Camden, NJ) is condensed canned soup. Create a supply chain showing the movement of materials and information for this brand from the basic raw materials
Develop a Six Sigma-type project employing the DMAIC steps for improving any phase of your personal life that you feel may be “defective.”
Blake is an intern in the Department of Performing Arts (DPA) at Local University. One of his duties is to schedule end-of-term recitals for the department?s graduating class and to create and
Logistics Management is a trade magazine that focuses on supply chain management, especially logistics. Its website is www.logisticsmgmt.com. The magazine includes numerous articles reporting
One of the key elements in supply chain management is forecasted demand. Customer demand is obviously an important, if not the most important, factor in determining production and distribution plans
Transportation & Distribution is a trade magazine that focuses on supply chain management, especially logistics. The magazine includes numerous articles reporting on companies’ experiences with
Describe and discuss the cultural differences between Canada and a country of your choice that might affect the management of a project in this foreign country.
Select four fast-food restaurants (e.g., McDonald’s, Burger King, Wendy’s, Harvey’s, etc.) in your town, and develop a scoring model including decision criteria, weights, and grades to rank the

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