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business
operations management

Questions and Answers of Operations Management

Adrian Thomas (from Problem 15) has determined the costs of inputs for making golf balls as follows:Labor: $12 per hourMaterial: $6 per poundMachine: $8 per hourEnergy: $0.60 per BTUCompute the
Adrian Thomas makes golf balls in his Erie, Pennsylvania, plant. Adrian wants to improve the overall productivity of his company given the increases in the cost of inputs in recent years. He has the
A multinational company has two manufacturing plants, one in Germany and the other in China. Both plants produce the same product, which is sold in their respective countries. By using a partial
The fictional Enrobe Textile Inc. has garment production facilities in several locations around the globe. The average monthly cost of inputs (in U.S dollars) and output levels (in units) for each of
Define single-factor, multifactor, and total productivity measures.
The following data were collected by Orion Industries Inc. (Auburn, WA) to compile the monthly productivity report to be presented to its board of directors. By using these data, compute(a) The
Define productivity. What is the difference between productivity and efficiency?
GreenTile, Inc. is a fictional manufacturer of heat-absorbing ceramic tiles that can store and radiate heat for hours after sundown, saving homeowners heating costs during winter months. This year,
What are the six capabilities needed for an integrated global operations and supply chain strategy?
You run a medium-sized farming equipment repair firm in North Dakota. Your busiest season is the late fall through winter months when area farmers need repairs done to their equipment. Because you
What are the distinguishing features of companies that lead the way with sustainable supply chain strategies?
The fictional Taj Mahal Indian grocery store had sales of US $50,000 in August and US $62,000 in September. There are 10 full-time workers in the store, each of whom worked 40 hours a week. In
A key supply chain strategy decision is to determine the structure of a firm’s supply chain. How do you think the supply chains for Wal-Mart and IKEA are structured?
A Swiss manufacturing company that operates two manufacturing plants€”one in the United States and the other in India€”shows the following results (all figures are in U.S.
Compare the operations strategies for goods versus service firms.
Udupi, a fictional catering service, prepares and serves meals at wedding receptions, anniversary celebrations, and birthday parties. The data in the following table provide the company€™s
Develop a balanced scorecard for a regional airlines company.
Orion Tile & Marble Inc. (Anaheim, CA) supplies and installs ceramic tiles. The company tracks its workers€™ output over the past several weeks, and the data are as follows:1. In which
From an operations strategy perspective, how can the balanced scorecard be used as a performance measurement system?
Identify five critical success factors for a firm competing in the software gaming industry.
Suppose that you own a lawn mowing and snowplowing service and are planning to provide these services to homeowners in a wealthy neighborhood. How would you use the concepts of order winners and
Discuss how the following changes in a firm’s external environment would affect its operations management (OM) strategy. What impact would these changes have on OM strategy:1. Threat of war between
What do you think the order-winning and order-qualifying criteria for the furniture retailer IKEA (Delft, the Netherlands) is?
Suppose you are a retail store owner trying to decide whether to extend your Black Friday hours to start on Thanksgiving afternoon. You know that you earn 40% of your annual sales revenue during the
Why is it important to maintain a strategic fit among the four elements of an operations strategy? How can a company resolve any mismatches among them that result from changing markets trends or
Suppose you were asked to determine and align the four elements of an operations strategy for The Boeing Company (Chicago, IL). Identify its customers, core competencies, operational critical success
Describe why an operations strategy is critical to a firm.
Suppose you were recently hired by the adidas Group (Herzogenaurach, Germany) to help the firm address its triplebottom line. Research adidas at http://www.adidasgroup.com/en/group/profile/ to
FedEx’s core competency is embedded in its slogan: When it absolutely, positively has to be there overnight. Identify that core competency.
The following article discusses how Nestlé S.A. (Vevey, Switzerland) coped with the volatility in food and raw material costs. The company crafted a strategy that didn’t depend on commodity prices
1. Take a position either for or against the following statement: “To prepare for disasters, you should stockpile inventory, other critical supplies, and raw materials.”2. Think of Heinz’s (H.
What are some of the inherent problems in measuring productivity in the service sector?
Consider the Lessons Learned about Apple. Why is it dangerous to use a single source supplier when you are a company like Apple, which depends heavily on its ability to dazzle consumers with new
Give an example of how ethics plays a role in supply chain management? (Think of the process of qualifying international, upstream suppliers. How would ethics factor into this decision?)
Why is sustainability so critical for successful operations and supply chain management in modern organizations?
Consider the evolution of operations and supply chain management (Table 1.3). Suppose you were tracing the likely development of Coca-Cola€™s operations from its founding in 1892 to the
Why are the concepts of demand management and supplier management so critical to success operations and supply chain performance? Give examples of companies that specialize in excellent demand and
What are some of the major downstream costs in developing a supply chain? Identify the different downstream interfaces, and consider some of the likely costs associated with each of these interfaces.
What are some of the major costs in developing a supply chain? Identify the different upstream interfaces, and consider some of the likely costs associated with each of these interfaces.
What are the advantages and disadvantages of having multiple layers of first- and second-tier suppliers?
Given the conflicting information in the two metrics (corruption and competitiveness) in questions 8 and 9, how would you resolve these discrepancies? That is, when dealing with supplier choices that
Suppose you were considering hiring a supplier for a critical good your firm needs to make its products. Your final choices came down to three companies: one in Nigeria, one in Venezuela, and one in
Suppose you were considering hiring a supplier for a critical good your firm needs to make its products. Your final choices came down to three companies: one in Nigeria, one in Venezuela, and one in
Give an example of a supply chain for a service.
Figure 1.5 presents the operations function as a system that transforms inputs into outputs. For the following scenarios, identify the inputs and outputs and the value created during the
Consider the operation management interfaces with other business functions shown in Figure 1.4. Read the Zara Operations Profile. What interfaces in Figure 1.4 does Zara manage well? Why?Figure 1.4
What are the key differences between goods and services?
Use the Internet to find examples of organizational transformation processes that are(a) Physical,(b) Locational,(c) Transactional,(d) Physiological,(e) Psychological, or(f) Informational?List a
After considering the various career options within supply chain and operations management, what underlying skills do you believe successful managers need to possess? Why?
Explain in some detail the critical role of the operations function in a company’s success and its supply chain.
Define global supply chains. What are the inherent challenges that companies face in managing them?
Why are companies setting up call centers and other service offices in India? If you were hiring Indian employees for such a call center, what characteristics would be critical for them to be hired?
1. Develop an argument either in favor of or against a deliberate shortage strategy, such as Nintendo has experienced in the past. What are the advantages and disadvantages of maintaining
Wal-Mart (Wal-Mart Stores Inc., Bentonville, AR) has been one of the most successful companies in the retail industry because of its ability to sell products at “everyday low prices.” What
What are some key reasons why a firm should consider offshoring or outsourcing its work? Imagine you are the head of operations for Nike. What functions would it make sense to offshore or outsource,
1. How do you respond to the view that China’s competitive advantage is based solely on a low-cost strategy that results from its workers’ low wages?2. Do you see dangers from over-reliance on
Toyota, known for its quality automobiles, had its reputation tarnished by having to recall millions of its vehicles due to defective accelerators and brakes. The following article discusses the
Compare and contrast outsourcing and offshoring. List some of the companies that have adopted these strategies in recent years and the reasons for them.
Give three examples of large firms that have international suppliers.
The Braykup China Company makes an assortment of gift and commemorative items with team and university logos, such as plates, bowls, and mugs. One popular item is a commemorative stein. The steins
Go to the Excellence Canada website at www.nqi.ca and research several companies that have won the different awards. Describe any common characteristics that the quality-management programs in those
What is your core competency? Make a list of the core competencies you will need to compete successfully in the job market. Design a strategy for developing the competencies that you do not have and
Kim Wakaruk, R.N., the charge nurse of the antepartum ward of Children€™s Hospital in Calgary, needs help in scheduling the nurse workforce for next week.a. Create an employee schedule that
University students always have a lot of work to do, but this semester, Katie Sirinyan is overwhelmed. The table below lists the assignments she faces, the estimated completion times (in days), and
Look for advanced planning and scheduling software on the Internet. Write a summary of the techniques presented.
Explain the drum-buffer-rope concept.
What is a poka-yoke? Give an example.
Why is uniform production important to lean production? How is it achieved?
Which elements of lean production are the most difficult to implement? Why?
Zakirul is asked to produce 250 squidgets an hour. It takes 30 minutes to receive the necessary material from the previous workstation. Each output container holds 25 squidgets. The factory currently
Soltar Manufacturing produces three types of trucks on one assembly line: the long-haul (L), the short-haul (S), and the vocational truck (V). Next month the company has orders for 500 long-haul
What are some typical benefits from implementing lean production?
Discuss the problems Toyota has had with quality. What has the company done to refurbish its reputation?
Access the website of an ERP vendor such as Oracle, SAP, Infor, i2 Technologies, or QAD. Make a list of the modules available. Choose one module to describe in detail.
Sitting on Maggie Klimchuk€™s desk is the latest planned order report from the company€™s MRP system. Maggie€™s job is to determine if there is enough capacity to handle
Kid€™s World sells outdoor play equipment for children. One of its most popular items is a 5-foot by 7-foot wooden sandbox shown below. General assembly instructions follow. Assembly
From articles in recent business magazines, describe the newest trends in e-business software.
Valley Electric Company generates electrical power at four coal-fired power plants in Nova Scotia, New Brunswick, Quebec, and Ontario. The company purchases coal from six producers in British
The Cascades Swim Club has 300 shareholders, each holding one share of stock in the club. A share of club stock allows the shareholder€™s family to use the club€™s heated outdoor
The daily demand for Iron coat paint at the Top Value Hardware Store in North Bay is normally distributed, with a mean of 30 liters and a standard deviation of 10 liters. The lead time for receiving
In Problem S13-11 discuss how you might assess the accuracy of the average rating for North-East University students based on only 20 simulated dates.Problem S13-11Northern University and North-East
Complete the available-to-promise table below. Period On-hand = 10 5 Forecast 50 50 50 50 50 50 Customer orders 56 17 75 50 16 14 Master production 100 100 100 schedule Available-to-promise 3. 2.
Complete the available-to-promise table below. Period 3 On-hand = 30 Forecast 100 50 100 50 100 50 Customer 75 50 116 73 45 23 orders Master 50 100 50 100 100 50 production schedule Available-to-
Calculate the available-to-promise row in the following matrix. Period 3 On-hand = 100 Forecast 50 100 50 100 50 100 15 Customer orders 50 125 75 175 45 200 Master production 200 schedule
The Mystic Coffee Shop blends coffee on the premises for its customers. It sells three basic blends in bulk in one-kilogram bags: Special, Mountain Dark, and Mill Regular. It uses four different
East Coast Airlines operates a hub at the Halifax International Airport. During the summer, the airline schedules seven flights daily from Halifax to Toronto and 10 flights daily from Toronto to
The Cross-Canada Trucking Company has expanded its shipping capacity by purchasing 120 trucks and trailers from a competitor that went bankrupt. The company subsequently located 40 of the purchased
The Tycron Company produces three electrical products€”clocks, radios, and toasters. These products have the following resource requirements:The manufacturer has a daily production budget
University Press publishes textbooks for the university market. The demand for university textbooks is high during the beginning of each semester and then tapers off during the semester. The
Calgary Airlines routinely overbooks its flight from Calgary to Vancouver. Overbooking discounted seats can be expensive because providing a bumped passenger with a last-minute flight on a competing
FlyUs Airlines is unhappy with the number of empty seats on its Sudbury to Toronto flight. To remedy the problem, the airline is offering a special discounted rate of $89 instead of the normal $169,
NorthStar Airlines runs daily flights from Halifax to Montreal. The planes hold 60 passengers and cater to the business traveler with comparable business rates. The recent economic downturn has
What constitutes the feasible solution area on the graph of a linear programming model?
Barrows Textile Mills produces two types of cotton cloth—denim and corduroy. Corduroy is a heavier grade of cotton cloth and, as such, requires 7.5 kilograms of raw cotton per meter, whereas denim
The Pinewood Cabinet and Furniture Company produces sofas, tables, and chairs at its plant in Montreal. The plant uses three main resources to make furniture€”wood, upholstery, and labour.
The Black Jack Distillery produces custom-blended whiskey. A particular blend consists of rye and bourbon whiskey. The company has received an order for a minimum of 400 liters of the custom blend.
The Star City Café at a U.S. campus student centre serves two coffee blends it brews daily, Morning Blend and Study Break. Each is a blend of three high-quality coffees from Brazil, Tanzania, and
Dr. Beth McKenzie, the head administrator at Victoria Hospital, must determine a schedule for nurses to make sure there are enough nurses on duty throughout the day. During the day, the demand for
The McCoy Family raises cattle on their farm in Alberta. They also have a large garden and green-houses, in which they grow ingredients for making two types of relish—cabbage and tomato.
The Big Max grocery store sells three brands of milk in half-liter cartons—its own brand, a local dairy brand, and a national brand. The profit from its own brand is $0.97 a carton, the profit from

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