DSC\t335\t-\tOperations\tManagement PROBLEM\tSET\t#1\t-\tTotal:\t100\tpoints Due:\tFebruary\t7,\t2012. You\tmust\tprovide\tdetailed\tcalculations\tand\tmake\tappropriate explanations\tto\treceive\tfull\tcredit. Problem\t-\t1\t(5\tpoints) In the 80's, GM has invested billions of dollars in a Kansas City plant to build completely automated production lines which could produce 240,000 units of a particular Pontiac model; which turned out to be a disastrous policy choice. Explain in one sentence two significant\tissues\tthat\tGM\texecutives\tsignificantly\tundermined. Problem\t-\t2\t(5\tpoints) Consider the 9 competitive priorities listed below. In the process of determining an operation strategy, an operations manager needs to identify the competitive priorities for each\tmarket\tsegment.\tWhich\tpriorities\tdo\tyou\tthink\twere\tundermined\tby\tGM?\tWhich\tones do\tyou\tthink\twere\temphasized\tby\tMercedes\tBenz? Problem\t-\t3\t(15\tpoints) Consider\tthe\tfigure\tabove,\twhich\toutlines\tthe\tprocessing\ttime,\tmaterial\tand\tpurchased\tpart requirements\tas\twell\tas\tthe\tweekly\tdemands\tand\tselling\tprices\tof\tthree\tproducts\tA,\tB\tand\tC a\tfirm\tproduces\tby\tusing\tfour\tresources\tW,\tX,\tY,\tZ.\tEach\tof\tthe\tfour\tresources\tis\tstaffed\twith one\tworker,\tand\tthe\tplant\toperates\tfor\t40\thours\tper\tweek.\tWeekly\toverhead\tcost\tis\t$9,000. 1 (a) (b) Assuming an inflexible labor rate of $15/hr, find the production plan that results from the traditional method and the bottleneckbased methods, and calculate the weekly\tprofit\tfor\teach\tmethod. Repeat\tpart\t(a)\tassuming\ta\tflexible\trate\tof\t$20/hr. Problem\t-\t4\t(25\tpoints) Consider\tthe\tKristen's\tCookie\tCompany\t(KCC)\tcase\twhere\tboth\tyou\tand\tyour\troommate\tare working. Suppose\tthat\tthe\tsequence\tof\tprocessing\tstages\tstays\tthe\tsame,\tbut\tthe\tduration\tof some of the process steps has changed. The sequence of steps and their duration are as follows: Mixing 4\tminutes\tof\tlabor\ttime\tfor\t1\tdozen\tcookies; 6\tminutes\tof\tlabor\ttime\tfor\t2\tdozen\tof\tthe\tsame\ttype\tof\tcookies; 8\tminutes\tof\tlabor\ttime\tfor\t3\tdozen\tof\tthe\tsame\ttype\tof\tcookies; Spooning 2\tminutes\tof\tlabor\ttime\tper\tdozen\tcookies; Baking 15\tminutes\tof\toven\ttime\tper\tdozen\tcookies\t(2\tminutes\tof\tlabor\ttime\tto set\tup\tand\tload\tthe\toven\tfollowed\tby\t13\tminutes\tof\tbaking); Cooling 5\tminutes; Packing 1\tminute\tof\tlabor\ttime\tper\tdozen\tcookies; Payment 1\tminute\tof\tlabor\ttime\tper\torder. As\tin\tthe\tKCC\tcase\t-\tyou\twill\tmix\tand\tspoon;\tyour\troommate\twill\tset\tup\tand\tload\tthe\toven, pack,\tand\taccept\tpayment. Your\troommate\twill\talso\tunload\tthe\toven\tbut\twe\tshall\tassume that this activity consumes negligible time and can be performed in the middle of doing something\telse.\tFurthermore,\tassume\tthat\tthree\tidentical\tovens\tare\tavailable\tfor\tyour\tuse. The\toperation\truns\tfor\t4\thours\tevery\tnight. (a) Consider\ta\tparticular\tday\twhen\teach\tcustomer\torder\tis\tfor\t1\tdozen\tcookies.\t(10pts) (i) Calculate\tthe\tflow\trate\tif\tthe\torders\tarrive\tat\ta\trate\tof\t8\tper\thour. (ii) Assuming the same order arrival rate, calculate the flow rate if your roommate\tis\tnot\tavailable\tand\tone\tof\tthe\tthree\tovens\tbreaks\tdown? (b) Suppose\tthat\teach\tcustomer\torder\tis\tfor\t2\tdozen\tcookies\tof\tthe\tsame\ttype.\t(15pts) (i) If 2 of the 3 ovens are filled with the cookies for the previous order until 9:13pm,\tand\tthe\tnext\torder\tis\tplaced\tat\t9:02pm,\twhat\tquote\twould\tyou\tgive for\tthe\tdelivery? (ii) Assuming\tflexible\tlabor\tat\ta\trate\tof\t$15/hr\t(i.e.,\tlabor\tis\tgetting\tpaid\tfor\tthe duration he/she is actively utilized) and also assuming that a box costs 50 cents (1 box can hold 1 dozen) and ingredients for 2 dozen cookies cost $1.20, what is the price you should charge for 2 dozen cookies to make a profit\tof\t$1.05\ton\tthe\torder? (iii) For an inflexible labor rate of $12/hr, how would you price the cookies to make\tthe\tsame\tprofit\t(Assume\tthat\tit's\tOK\tif\tyou\tfinish\tan\torder\tafter\tthe\t4 hour\tmark\tas\tlong\tas\tits\tprocessing\talready\tstarted,\tand\tthe\torders\tarrive\tat 10\tper\thour)? Problem\t-\t5\t(20\tpoints) The International Cranberry Processing Company (ICPC) is a competitor to National Cranberry Cooperative (NCC). At ICPC, trucks arrive at a rate of 250 bbls/hr, and are processed\tat\ta\trate of 150\tbbls/hr.\tTrucks\tarrive uniformly\tbetween\t6am\tand\t2pm.\tBerry 2 processing\tstarts\tat\t6am.\tThe\tstorage\tbins\tcan\thold\tup\tto\t300\tbbls.\tIf\ta\ttruck\tarrives\twhen the\tbins\tare\tfull,\tthe\ttruck\tmust\twait\tuntil\tthere\tis\troom\tin\tthe\tbins.\tAnswer\tthe\tfollowing questions\tby\tdrawing\ta\tgraph\tthat\tshows\tinventory\ton\thand\t(waiting\tin\tstorage\t+\twaiting on trucks) vs. time (from 8am until the entire load is processed) (If the bins are full, you cannot store any inventory on the dumpers). Clearly mark the important points in time (beginning,\tend,\tflow\trate\tchanges,\ttimes\tthe\ttrucks\tstart/finish\twaiting)\tand\tthe\tamount\tof inventory\tat\tthose\ttimes. (a) What\tis\tthe\tamount\tof\tbarrels\twaiting\ton\ttrucks\tat\t2pm\tand\tat\t7pm? (b) How long does the last truck - the one that arrives at 2pm - wait before its unloading\tstarts? (c) Calculate\tthe\tmaximum\tamount\tof\ttotal\tinventory\t(on\ttrucks\t+\ton\tbins)\tif\twe\thave seasonal\tworkers\thelping\tfrom\t10am\tuntil\tthe\tend\tof\tthe\tprocess.\tAssume\tthat\twith the\tseasonal\tworkers\tthe\tprocessing\tcapacity\tgoes\tup\tto\t200\tbbls/hr. (d) Calculate the maximum amount of inventory on trucks if the processing starts at 8am instead of 6am? Assume regular workers have a 1hr lunchbreak starting at noon,\tand\tseasonal\tworkers\tstill\tstart\tat\t10am\tand\ttake\ttheir\tbreak\tat\t2pm.arrive\tat the\tfacility. Problem\t-\t6\t(30\tpoints) Solve\tProblems\t3,\t7\tand\t8\tin\t\"Supplement\t-\tWaiting\tLines\"\tfrom\tyour\ttextbook. (3a)\t2pts,\t(3b)\t2pts,\t(3c)\t2pts,\t(3d)\t2pts,\t(7)\t10pts,\t(8a)\t4pts,\t(8b)\t4pts,\t(8c)\t4pts. 3