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operations management
Questions and Answers of
Operations Management
The local driver license center uses a single-server, single-line, single-phase system when processing license renewals. Customers arrive at the facility according to a Poisson distribution at the
Refer to the data in Problem C.2. The owner of the coffee shop at the student recreation center, Amanda Murdock, is interested in computing the per day total cost of the waiting line system at the
The following are some real-world waiting line systems. Indicate whether it is a single- or multichannel, single-phase or multiphase, the queue discipline, and whether the calling populations is
An automatic roller coaster ride at an amusement park takes a constant 2 minutes to complete a ride. Customers arrive at the automatic roller coaster ride facility at the rate of 25 per hour. The
Amanda Murdock, the owner of the coffee shop at the student recreation center in Problem C.2, to reduce the student waiting time at the coffee shop has decided to install an automatic coffee vending
Give some examples of single-channel waiting line systems with constant service times.
Which of the two performance measures is larger: Ls or Lq? Explain.
Neptune Manufacturing Inc. makes soaps in an assembly line process. One of the machines on the line is an automatic soap press that has single assembly line feeding into it. Partially completed units
What are the common performance measures calculated for evaluating waiting line systems?
Jonathan Trott, the manager of the driver license center in Problem C.3, has decided to open another service counter to improve the license renewal processing service. The time to process a license
What does the term “steady state” mean in the context of a waiting line system?
Refer to the data in Problem C.3. Jonathan Trott, the manager of the driver license center, is interested in computing the per day total cost of the waiting line system at the center. He has
A local pharmacy has the following pertaining to prescription requests and service times on a typical Monday:1. Determine for each time period the probability that there are no customers in the
What are some factors you should consider (in addition to choosing a queuing model) in managing real-world waiting lines?
The Donghai Bridge of China is a 20.2-mile-long toll bridge stretching from Shanghai to the Yangshan offshore water port. Currently, there are six exact change toll booths, each staffed by an
The Gulf Shipping Company in Dubai, UAE, has four terminal docks in its warehouse. Arriving trucks form a single line and use one of the four available docks for loading and unloading of the cargo.
A large hotel receives telephone calls to its switchboard at an average rate of 50 calls per hour according to a Poisson distribution. The switchboard is staffed by three operators, and the service
A service technician for a laser printer manufacturer services five customers who have bought five large printers from the company. Each of these printers requires repair and maintenance work after
A drilling department Orion Manufacturing Inc. has five drill press machines and has one repair technician to service these machines. Each drill press operates for an average of 10 hours (negative
The registration desk at the exclusive Le Meridien Hotel has four staff agents to check in the hotel guests. Guests arrive at the registration desk at an average rate of 40 per hour (Poisson
Passengers at the Sahar International Airport arrive at a security gate at the rate of 40 passengers per hour (Poisson distributed) and form a single line waiting for a security check at one of the
Think of an example of a service failure that you experienced. It could be any of a variety of examples from retail, food and dining, health care, etc. Analyze and evaluate the situation. What were
How is demand forecasting similar to demand planning, and how is it different?
What are the strengths and weaknesses of a demand forecasting system? What limitations to the systems must we be aware of?
Imagine you are shopping for a new car. What are some customer service metrics that the auto dealer should be using to evaluate its performance? Based on your experience with buying a car, did you
What is collaborative forecasting, and why is it so important in demand management?
Imagine you were shopping for a new smartphone at a large wireless service provider. How do the metrics of customer service (time, dependability, communication, and convenience) determine how
How does global demand volatility affect an organization’s upstream and downstream suppliers? Use a grocery store as an example.
Why can postponement be an effective demand management strategy? How does it work for a service firm? A manufacturer?
How does services demand management operate? Why is it so critical for service organizations (Hint: use the concept of “capacity constrained” in your response)?
What are the four supply chain dimensions of customer service?
Service recovery success hinges on two elements. What are they?
Give some examples of a company’s operational planning activities that require demand forecasts.
1. This scenario shows how ethics can influence decision-making with forecasting. Put yourself in Katie’s position; how would you respond?2. Select either the “tell the truth” or the “fix the
When is it appropriate to use qualitative forecasting methods?
Discuss the qualitative forecasting technique of a historical life-cycle analysis.
What is a time series and the rationale for forecasting based on a time series analysis?
Discuss briefly the various components of a time series.
What are the advantages of the simple exponential smoothing method of forecasting over the moving average technique?
In exponential smoothing, what is the rationale for choosing a low versus a high value of α?
Under what circumstances is the trend-adjusted exponential smoothing method of forecasting superior to a linear trend analysis?
What is the difference between the linear trend equation and the linear regression equation for a causal model?
In a multiple linear regression model with two independent variables, how would you interpret the regression coefficients b1 and b2?
In what ways is the MAPE superior to the other forecasting error measures discussed in this supplement?
The managers of Mayo Department Store want to evaluate the relationship between the sales of air conditioners and the average weekly temperature. The following weekly sales data along with the
Champion Auto Group believes that car sales are closely related to the amount of money the firm spends on advertising and the personal income levels of consumers in various target markets. The
A major shoe manufacturer is considering launching a brand new pair of running shoes. Before introducing the shoes to the market, the company wants to determine the impact the price and in-store
Based on 12 months of demand data, an apparel store generated the following forecasts using judgmental methods. Compute the tracking signals for the forecasts using ±4 MAD limits and comment
Multiple regression analysis in Excel produced the following tables:1. State the multiple regression equation.2. Interpret the meaning of the coefficients X1 and X2 in the table.3. Forecast the value
A market research analyst used multiple regression analysis to determine the impact of price and promotion on the sale of a new brand of cereal. The analyst collected data from three variables from
Euro Rail ridership during the summer months is believed to be closely related to the number of tourists visiting Europe. The following table shows the data on number of tourists and Euro Rail
A math instructor who teaches calculus at a university in Western Pennsylvania believes that there is a relationship between the number of optional homework problems that the students complete during
James Trott, the manager the fictitious Blue Line Trucking Company, wants to develop a forecasting model to predict the maintenance expenditures on the companys trucks. The manager
A company that produces protein bars used different forecasting techniques to predict demand for its protein bars. The actual demand and the forecasted demand for cases of protein bars using the two
Aarthi Medicals, a fictitious company, has been monitoring the sales of a health drink for diabetics. As the demand for the health drink has been steadily increasing, the owner of the store, Nicole
Great Lakes Blood Bank (fictional) is the primary supplier of blood to various hospitals in Erie County, Pennsylvania. The number of pints of the rare blood type AB- supplied by the blood bank to the
A company has observed the following demand during the past 10 months for one of its popular products:1. Plot these data on a graph. Do you observe any pattern such as trend, seasonal, cyclical, or
The following table shows demand for kidney transplants for the past 7 years at the fictitious Crescent General Hospital:1. Compute 3-month moving average forecasts for years 4 to 8.2. Compute
A marketing manager has determined that demand for his companys popular product in a region is a function of the size of the regions population in tens of thousands (x1),
1. Go to Oracle’s (Oracle Corporation, Redwood City, CA) website (https://www.oracle.com/index.html), and read about its software applications for retailers. Thousands of retail and wholesale
Explain the three types of waste (muri, mura, and muda) in your own words. Can you think of situations where you have seen each of these types of waste in jobs you have performed?
1. The quote at the end of this case seems to suggest that the technology of getting this innovative aircraft to fly was the easy part. Discuss why Boeing’s real challenges lie in the future rather
1. What are the main advantages of letting a company like TAL manage your inventory and reorder systems? What are the major disadvantages?2. How does TAL achieve integration in its supply chain? What
Compare the ideas of lean with the 5S framework. How do they complement each other? How do you see them as distinct approaches?
An autoglass company located in Detroit produces mirrors for automobiles. The company supplies auto mirrors to a nearby Ford (The Ford Motor Company, Dearborn, MI) plant. The demand for mirrors from
What are the main differences between push and pull systems? Which seems more difficult to manage? Why?
Why is production in small lot sizes essential to achieving lean?
Why is value stream mapping such a critical first step in a company’s move toward a lean approach to operations?
You have the following information:Demand rate = 250 units per hourLead time = 15 hoursContainer capacity = 300 unitsSafety stock = 20%1. Determine the number of Kanban cards required.2. Convert
What types of production processes are most conducive to developing a value stream map?
You have the following information:Demand rate = 500 units per hourLead time = 5 hoursContainer capacity = 60 unitsSafety stock = 15%1. Determine the number of Kanban cards required.2. Convert these
Why is uniform production an important element of lean, and how is it achieved?
How are lean thinking and Six Sigma related?
What are the advantages of lean services?
A bank in New Delhi, India, uses a Kanban system in its check processing facility. Each Kanban container holds 60 checks, requires 25 minutes to be processed, and spends 2.5 hours waiting to be
Which lean approaches work in both lean manufacturing and lean service operations?
Refer to Table 8.2 as a basis for this problem. This months master production schedule calls for the production of 180 sandals, 120 dress shoes, and 80 sneakers per eight hour shift.1.
What are the elements in a lean supply chain? Why are transparent information and full collaboration two critical components of lean supply chains?
Dolphin Motors (not a real company) recently installed a mixedmodel production line at its plant in Bangalore, India. The sales of its minivans and SUVs have declined in recent months as a result of
Discuss briefly the key elements of lean logistics.
The Standard Herald Motor Company is a fictional producer of three types of vehicles/cars in a single assembly line: the sedan (S), the hatchback (H), and the SUV (V). The plant manager at Standard
You are the shift manager of a medium-sized restaurant. You would like to begin taking a lean production approach. Identify three changes you could make to institute a lean approach at the restaurant.
The fictitious Cool Air Inc. assembles three models (A, B, and C) of air conditioners. The production manager at Cool Air plant wants to implement uniform production and mixed-model scheduling. The
Suggest ways in which lean principles can be applied to a hospital.
Discuss why inventory management is needed to manage operations and supply chains effectively.
The text provides a set of inventory management metrics. Suppose you were put in charge of a small clothing store at your local mall specializing in summer and beach wear. Select three of the
1. Consider a sporting goods store and apply a type A, B, and C classification method to its inventory. What items are likely to turn over often as a result of seasonal demand?2. Tuesday Morning’s
Inventory management in the service sector is a critical function because services often include tangible items as inventory. Discuss how you might manage inventory at a large, multiscreen movie
1. Think of some aspects of inventory management discussed in this chapter (for example, inventory costs or cycle-stock patterns). How does online shopping affect them?2. How is omnichannel shopping
Identify the various types of inventory, and explain how they contribute to the operations function of an organization.
The text discusses four types of inventory. Select a business (not one given in the text), and identify examples of all four classes of inventory as they can be applied to that business.
What are the most common types of costs associated with inventory?
Safety stock is critical for smoothing out potential supply disruptions during reordering. Can you think of some businesses or product categories that require more safety stock than others? (Why
Why is inventory critical within supply chains?
Suppose you were a consultant working for the Wegmans (Wegmans Food Markets, Inc., Rochester, NY) grocery store organization and you were asked to advise the company on steps it could take to make
Identify some of the key metrics organizations used to assess how well their inventories are being managed.
Develop an ABC inventory classification system for a minimum of 20 items at your local Wal-Mart (or a similar general retail store). What criterion did you use for classifying the goods into either
What are the advantages and disadvantages of physically counting inventory?
Lynne Chappell manages the inventory of supplies in a large hospital. To determine which items should be closely monitored, Lynne decided to use the ABC classification scheme to group the items on
Norman Stark, Inventory analyst at fictional Grimault Industries, is considering the use of the ABC method of classifying inventory so that he can exercise better control over the critical items in
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