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business
operations management

Questions and Answers of Operations Management

L. Houts Plastics is a large manufacturer of injection-moulded plastics in Ontario. An investigation of the company€™s manufacturing facility in Mississauga yields the information presented
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
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
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
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.
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
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
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
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:
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
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
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
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
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
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%;
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
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
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
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
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.
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
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
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)
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
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
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
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 +
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,
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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”
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
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
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
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
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
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
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
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
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
The actual demand for the patients at Moncton Medical Clinic for the first six weeks of this year follows:Week Actual No. of
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
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
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
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
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
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
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
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
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
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,
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.
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.
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
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
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,
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
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
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
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.

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