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operations management
Operations Management Sustainability and Supply Chain Management 2nd Canadian edition Jay Heizer, Barry Render, Paul Griffin - Solutions
What is eprocurement?
Define supply-chain management.
Tim Nelson, a quality assurance product inspector, is expected to inspect 130 ornaments per day.a) If he works an eight-hour day, how many minutes is he allowed for each inspection (i.e., what is his standard time )?b) If he is allowed a 6% fatigue allowance, a 6% delay allowance, and 6% for
Refer to Problems 1.13 and 1.14. If Marjatta Viitasalo’s utility costs remain constant at $500 per month, labour at $8 per hour, and cost of ingredients at $0.35 per loaf, but Viitasalo does not purchase the blender suggested in Problem 1.14, what will the productivity of the bakery be? What will
This year, Benson, Inc., will produce 57,600 hot water heaters at its plant in Saskatoon, Saskatchewan, in order to meet expected global demand. To accomplish this, each labourer at the Saskatoon plant will work 160 hours per month. If the labour productivity at the plant is 0.15 hot water heaters
Refer to Problem 1.13. The pay will be $8 per hour for employees. Marjatta Viitasalo can also improve the yield by purchasing a new blender. The new blender will mean an increase in her investment. This added investment has a cost of $100 per month, but she will achieve the same output (an increase
In December, General Motors produced 6600 customized vans at its plant in Windsor. The labour productivity at this plant is known to have been 0.10 vans per labour-hour during that month; 300 labourers were employed at the plant that month.a) How many hours did the average labourer work that
A firm hired to coordinate the release of the movie Goon (starring Jay Baruchel) identified 16 activities to be completed before the release of the film.a) How many weeks in advance of the film release should the promoter have started its marketing campaign? What is the critical path? The tasks (in
Refer to Solved Problem 4.1. Using the trend projection method, develop a forecast for the sales of Chevrolet Camaros in Alberta through 2016. What is the MAD?
With its headquarters and its largest manufacturing site based in Brampton, Ontario, StackTeck has become the largest plastics mould-maker in the world. In order to capitalize on global opportunities, the company has expanded its operations to include facilities in Hong Kong and Mexico.To remain on
Walmart views “environmental sustainability as one of the most important opportunities for both the future of our business, and the future of our world.” * Its environmental vision is clear: “… to be supplied 100 percent by renewable energy; to create zero waste; and to sell products that
Quebec Urban Furniture, Inc. produces all types of office furniture. The "Executive Secretary" is a chair that has been designed using ergonomics to provide comfort during long work hours. The chair sells for $130. There are 480 minutes available during the day, and the average daily demand has
Why do so many North American firms build facilities in other countries?
A British pharmaceutical chain wishes to make its first entry into the Canadian market by building a facility in southern Ontario, a region with which its director, Doug Moodie, is comfortable because he got his medical degree at McMaster University. After a preliminary analysis, four cities are
Manuel DeSousa, the manager of a metropolitan branch office of the Ministry of Transportation, attempted to analyze the driver€™s licence€“renewal operations. He had to perform several steps. After examining the licence-renewal process, he identified those steps and associated
Using the data in Solved Problem 10.1, prepare an activity chart like the one in the solved problem, but a second gas man also delivers 44 litres.In solved problem 10.1 Process Chart Summary O Operation O Transport O Inspect D Delay V Store 26 Charted by- of Date:- Sheet Problem: Vert. Dist. Hor.
An Air Canada gate agent, Chip Gilliken, gives out seat assignments to ticketed passengers. He takes an average of 50 seconds per passenger and is rated 110% in performance. How long should a typical agent be expected to take to make seat assignments?
Peter Rourke, a loan processor at Royal Bank, has been timed performing four work elements, with the results shown in the following table. The allowances for tasks such as this are personal, 7%; fatigue, 10%; and delay, 3%.a) What is the normal time?b) What is the standard time? Observations
New Brunswick’s Soda Pop, Inc., has a new fruit drink for which it has high hopes. Steve Allen, the production planner, has assembled the following cost data and demand forecast:Quarter Forecast1 ...............................
The Johnny Ho Manufacturing Company in Calgary is putting out four new electronic components. Each of Ho€™s four plants has the capacity to add one more product to its current line of electronic parts. The unit-manufacturing costs for producing the different parts at the four plants are
What is input–output control?
What is JIT?
Leblanc Electronics Inc. in Chicoutimi produces short runs of custom airwave scanners for the defence industry. You have been asked by the owner, Larry Leblanc, to reduce inventory by introducing a kanban system. After several hours of analysis, you develop the following data for scanner connectors
What are the expected number of yearly breakdowns for the power generator at Niagara Falls that has exhibited the following data over the past 20 years? 4 5 6 Number of breakdowns 0 1 2 3 Number of years in which breakdown occurred 2 5 4
A manufacturer of touch screens for tablets wants a MTBF of at least 50 000 hours. Recent test results for 10 units were one failure at 10 000 hrs, another at 25 000 hrs, and two more at 45 000 hrs. The remaining units were still running at 60 000 hours. Determine the following:a) Percentage of
What is the expected value with perfect information?
Consider the following decision table, which Dinesh Dave has developed for Laurentian Enterprises:Which decision alternative maximizes the expected value of the payoff? States of Nature 0.40 Decision 0.40 0.20 Low Alternatives Probability: Medium High $40 $100 $60 A $ 60 $70 в $85 $ 70 $60 $70 $65
The University of Manitoba bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 90 operations management students enrolled, but bookstore
Karen Villagomez, president of Wright Industries, is considering whether to build a manufacturing plant in Edmonton. Her decision is summarized in the following table:a) Construct a decision tree.b) Determine the best strategy using expected monetary value (EMV).c) What is the expected value of
Deborah Kellogg buys Breathalyzer test sets for the Montreal Police Department. The quality of the test sets from her two suppliers is indicated in the following table:For example, the probability of getting a batch of tests that are 1% defective from Loomba Technology is 0.70. Because Kellogg
Kenneth Boyer is considering opening a bicycle shop in north Vancouver. Boyer enjoys biking, but this is to be a business endeavour from which he expects to make a living. He can open a small shop, a large shop, or no shop at all. Because there will be a five-year lease on the building that Boyer
Tom Tucker, a robust 50-year-old executive living in the northern suburbs of Toronto, has been diagnosed by a University of Toronto internist as having a decaying liver. Although he is otherwise healthy, Tucker’s liver problem could prove fatal if left untreated.Firm research data are not yet
The LP relationships that follow were formulated by Jeffrey Rummel at the Fort McMurray Chemical Company. Which ones are invalid for use in a linear programming problem, and why?Maximimize = 6X1 + 1/2X1X2 + 5X3Subject to: 4X1X2 + 2X3 ≤ 70
The Cold Lake, Alberta, superintendent of education is responsible for assigning students to the three high schools in his jurisdiction. He recognizes the need to bus a certain number of students, because several sectors, A€“E, of the region are beyond walking distance to a school. The
In Solved Problem C.1, Williams Auto Top Carriers proposed opening a new plant in either Calgary or Kelowna. Management found that the total system cost (of production plus distribution) would be $20 000 for the Calgary site. What would be the total cost if Williams opened a plant in Kelowna? At
Edmonton€™s famous Limoges Restaurant is open 24 hours a day. Servers report for duty at 3 a.m., 7 a.m., 11 a.m., 3 p.m., 7 p.m., or 11 p.m., and each works an eight-hour shift. The following table shows the minimum number of workers needed during the six periods into which the day is
Kenneth and Patricia Golding spent a career as a husband-and wife real estate investment partnership in Calgary. When they finally retired to a 25-acre farm on northern Vancouver Island, they became ardent amateur gardeners. Kenneth planted shrubs and fruit trees, and Patricia spent her hours
Develop a northeast -corner rule and explain how it would work. Set up an initial solution for the Yorkton Plumbing problem analyzed in Example C1.
The three blood banks in Kitchener-Waterloo are coordinated through a central office that facilitates blood delivery to four hospitals in the region. The cost to ship a standard container of blood from each bank to each hospital is shown in the table below. Also given are the biweekly number of
Captain Cabell Corp. manufacturers fishing equipment. Currently, the company has a plant in Victoria and a plant in Calgary. David Cabell, the firm€™s owner, is deciding where to build a new plant€”Winnipeg or Terrace. Use the following table to find the total shipping costs for
The pharmacist at Saskatoon City Hospital, Saad Alwan, receives 12 requests for prescriptions each hour, Poisson distributed. It takes him a mean time of four minutes to fill each, following a negative exponential distribution. Using the waiting line table (Table D.5) and Wq = Lq/l, answer these
Manitoba’s Stephen Allen Electronics Corporation retains a service crew to repair machine breakdowns that occur on an average of λ = 3 per 8-hour workday (approximately Poisson in nature). The crew can service an average of μ = 8 machines per workday, with a repair time distribution that
Scotiabank is the only bank in the small town of St. Thomas. On a typical Friday, an average of 10 customers per hour arrive at the bank to transact business. There is one teller at the bank, and the average time required to transact business is four minutes. It is assumed that service times may be
Susan Slotnick manages a Burlington, Ontario, movie theatre complex called Cinema I, II, III, and IV. Each of the four auditoriums plays a different film; the schedule staggers starting times to avoid the large crowds that would occur if all four movies started at the same time. The theatre has a
The Kitchener Furniture store gets an average of 50 customers per shift. Marilyn Helms, the manager, wants to calculate whether she should hire one, two, three, or four salespeople. She has determined that average waiting times will be seven minutes with one salesperson, four minutes with two
Radovilsky’s Department Store in Richmond Hill maintains a successful catalogue sales department in which a clerk takes orders by telephone. If the clerk is occupied on one line, incoming phone calls to the catalogue department are answered automatically by a recording machine and asked to wait.
For more than 75 years, Labrador Foundry Inc. (LFI) has manufactured wood stoves for home use. In recent years, with increasing energy prices, president George Mathison has seen sales triple. This dramatic increase has made it difficult for George to maintain quality in all his wood stoves and
Why might a manager be forced to use simulation instead of an analytical model in dealing with a problem of:(a) inventory order policy?(b) ships docking in a port to unload?(c) bank teller service windows?(d) the Canadian economy?
The Toronto General Hospital has an emergency room that is divided into six departments: (1) an initial exam station to treat minor problems or to make a diagnosis; (2) an X-ray department; (3) an operating room; (4) a cast-fitting room; (5) an observation room (for recovery and general observation
Canadian Shield Airlines opened its doors in December 2001 as a commuter service with its headquarters and hub located in Yellowknife. The airline was started and managed by two former pilots, Steve Hobbs and Joseph Magill. It acquired a fleet of 12 used prop-jet planes and the airport gates
A chain of home health care firms in Ontario needs to locate a central office from which to conduct internal audits and other periodic reviews of its facilities. These facilities are scattered throughout the province, as detailed in the following table. Each site, except for Toronto, will be
A Canadian consulting firm is planning to expand globally by opening a new office in one of four countries: Germany, Italy, Spain, or Greece. The chief partner entrusted with the decision, L. Wayne Shell, has identified eight key success factors that he views as essential for the success of any
Consolidated Refineries, headquartered in Calgary, must decide among three sites for the construction of a new oil-processing centre. The firm has selected the six factors listed below as a basis for evaluation and has assigned rating weights from 1 to 5 on each factor:Management has rated each
Refer to Problem 8.1. Shipping cost from Cambodia to Halifax, the final destination, is $1.50 per unit. Shipping cost from China to Halifax is $1 per unit, while the shipping cost from Winnipeg to Halifax is $0.25 per unit. Considering both labour and transportation costs, which is the most
Why do so many foreign companies build facilities in North America?
A Canadian university’s business program has the facilities and faculty to handle an enrollment of 2000 new students per semester. However, in an effort to limit class sizes to a “reasonable” level (under 200, generally), the university’s registrar, Tom Choi, placed a ceiling on enrollment
Staffer Diane Bowles, who carries the title “Clinical Practice Improvement Consultant,” charts scores of processes. Bowles’s flowcharts help study ways to improve the turnaround of a vacated room (especially important in a hospital that has pushed capacity for years), speed up the admission
What is efficiency?
Oscar Lee’s company is considering producing a gear assembly that it now purchases from Okanagan Supply, Inc. Okanagan Supply charges $4 per unit with a minimum order of 3000 units. Stan estimates that it will cost $15 000 to set up the process and then $1.82 per unit for labour and materials.a)
With the growth of Hard Rock Cafe—from one pub in London in 1971 to more than 191 restaurants in 59 countries today—came a corporate-wide demand for better forecasting. Hard Rock uses longrange forecasting in setting a capacity plan and intermediate-term forecasting for locking in contracts for
Ontario Power Generation has been collecting data on demand for electric power in its western subregion for only the past two years. Those data are shown in the table below.To plan for expansion and to arrange to borrow power from neighbouring utilities during peak periods, the utility needs to be
Dr. Susan Sweeney, an Edmonton psychologist, specializes in treating patients who are agoraphobic (i.e., afraid to leave their homes). The following table indicates how many patients Dr. Sweeney has seen each year for the past 10 years. It also indicates what the robbery rate was in Edmonton during
Sales of music stands at Johnny Ho€™s music store in Burnaby over the past 10 weeks are shown in the table.a) Forecast demand for each week, including week 10, using exponential smoothing with a 5 0.5 (initial forecast 5 20).b) Compute the MAD.c) Compute the tracking signal. Week Demand
John Howard, a Toronto real estate developer, has devised a regression model to help determine residential housing prices in southern Ontario. The model was developed using recent sales in a particular neighbourhood. The price ( Y ) of the house is based on the size (square footage 5 X ) of the
The following gives the number of accidents that occurred on a section of the Trans-Canada Highway during the past four months:Month Number of AccidentsJanuary ....................... 30February...................... 40March
Refer to Solved Problem 4.1. Use a three-year moving average to forecast the sales of Chevrolet Camaros in Alberta through 2016. What is the MAD?Data from problem 4.1 Year Sales Forecast 2011 450 410 2012 495 2013 518 2014 563 2015 584 2016
The actual demand for the patients at Moncton Medical Clinic for the first six weeks of this year follows:Week Actual No. of Patients1 ...........................................652 ...........................................623
Mark Cotteleer owns a company that manufactures canoes. Actual demand for Mark's canoes during each season in 2012 through 2015 was as follows: Mark has forecasted that annual demand for his canoes in 2017 will equal 5600 canoes. Based on this data and the multiplicative seasonal model, what
Sales of vegetable dehydrators at Bud Banis€™s discount department store in Gander over the past year are shown below. Management prepared a forecast using a combination of exponential smoothing and its collective judgment for the four months March, April, May, and June of 2016:a) Compute
Using PERT, Jennifer Benson was able to determine that the expected project completion time for the construction of a pleasure yacht is 21 months, and the project variance is 4.a) What is the probability that the project will be completed in 17 months?b) What is the probability that the project
What is the minimum cost of crashing by four days the following project that James Walters manages at Athabasca University? Normal Crash Time Time Normal Crash Immediate Activity (days) (days) Cost Cost Predecessor(s) $ 900 $1000 A 5 B 8. 300 400 4 3 500 600 D 900 1200 8. 5 1000 1600
Thabo Mbeki, president of Mbeki Construction, has developed the tasks, durations, and predecessor relationships in the following table for building new motels. Draw the AON network and answer the questions that follow.a) What is the expected (estimated) time for activity C?b) What is the variance
The City of Lethbridge has decided to build a botanical garden and picnic area in the heart of the city for the recreation of its citizens. The precedence table for all the activities required to construct this area successfully is given below. Draw the Gantt chart for the whole construction
Anju Chaudhary is developing a program in leadership training for middle-level managers. She has listed a number of activities that must be completed before a training program of this nature could be conducted. The activities, immediate predecessors, and times appear in the accompanying table:a)
Robert Mefford has been nominated as a candidate to run for a seat as a member of Parliament representing Bonavista South. He views his eight-month campaign for office as a major project and wishes to create a work breakdown structure (WBS) to help control the detailed scheduling. So far, he has
Using AOA, diagram the network described below for Roni Zuckerman€™s construction project. Calculate its critical path. How long is the minimum duration of this network? Time (weeks) Time Nodes (weeks) Activity Nodes 10 Activity J 3-4 1-2 N K 1-3 4-5 3-5 5 2-4 2-4 3 2-3
Develop a ranking for competitiveness and/or business environment for Great Britain, Canada, Singapore, Hong Kong, and Italy.
Develop a ranking for corruption in the following countries: Mexico, Turkey, Canada, Denmark, Taiwan, Brazil, and another country of your choice.
Given the discussion of Porter Airlines in the text, define an operations strategy for that firm.
Define strategy.
Marjatta Viitasalo operates a bakery in Thunder Bay, Ontario. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no
Halifax Seafood makes 500 wooden packing boxes for fresh seafood per day, working in two 10-hour shifts. Due to increased demand, plant managers have decided to operate three 8-hour shifts instead. The plant is now able to produce 650 boxes per day.a) Calculate the company’s productivity before
Sawyer€™s, a local bakery, is worried about increased costs€”particularly energy. Last year€™s records provide a fairly good estimate of the parameters for this year. Judy Sawyer, the owner, does not believe things have changed much, but she did invest an additional
Aditi produces “Final Exam Care Packages” for resale. She is currently working a total of five hours per day to produce 100 care packages.a) What is Aditi’s productivity?b) Aditi thinks that by redesigning the package, she can increase her total productivity to 133 care packages per day. What
Canada, and indeed much of the world, has been described as a knowledge society . How does this affect productivity measurement and the comparison of productivity between Canada and other countries?
Eric Lafleur makes billiard balls in his New Brunswick plant. With recent increases in his costs, he has a newfound interest in efficiency. Eric is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of
National Air ExpressNational Air Express is a competitive air-express firm with offices around the country. Mohammed Chaudry, the Ottawa station manager, is preparing his quarterly budget report, which will be presented at the Eastern regional meeting next week. He is very concerned about adding
Frito-Lay, the massive Dallas, Texas-based subsidiary of PepsiCo, has 38 plants and 48 000 employees in North America. Seven of Frito-Lay's 41 brands exceed $1 billion in sales: Fritos, Lay's Cheetos, Ruffles, Tostitos, Doritos, and Walker's Potato Chips. Operations are the focus of the firm-from
Since its inception in 1971, Hard Rock has grown from a modest London pub to a global power managing 145 cafes, 21 hotels, 10 casinos, live music venues, and a huge annual Rockfest concert. This puts Hard Rock firmly in the service industry-a sector that employs over 75% of the people in the United
As a library or internet assignment, find the U.S. productivity rate (increase) last year for the(a) national economy,(b) manufacturing sector,(c) service sector.
John Lucy makes wooden boxes in which to ship motorcycles. John and his three employees invest a total of 40 hours per day making 120 boxes.a) What is their productivity?b) John and his employees have discussed redesigning the process to Improve efficiency. If they can increase the rate to 125
Figure 1.1 outlines the operations, finance/accounting, and marketing functions of three organizations. Prepare a chart similar to Figure 1.1 outlining the same functions for one of the following:a. Newspaperb. Drugstorec. College libraryd. Summer campe. Small costume-jewellery factory
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