Problem 1 (18 marks) Tip Top Markets is a regional chain of supermarkets. On July 28, Karen Martin, manager of one of the stores was disturbed by the large number of recent complaints from customers at her store, particularly on Tuesdays, so she obtained complaint records from the store's customer service desk for the last three Tuesdays. These are shown below: July 13 Wrong price on spaghetti Overcharged Water on floor Out of brown rice Store looked messy Out of mushrooms Store too warm Overcharged Checkout lines too long Checkout wait too long Cashier not friendly Shopping cart broken Out of feta cheese Couldn't find Aspirin Overcharged Out of brown lunch bags Out of Saran Wrap Out of straws Out of Haagen-Daz Bars July 20 Out of low-salt pickles Out of large eggs Checkout lines too slow Out of cran-apple juice Broken glass on floor Out of pretzels Lost keys Out of apricot jam Wrong price on sales item Telephone out of order Overcharged on corn Out of cocktail sauce Wrong price on baby food Water on floor Out of 500 ml Tide Out of frozen onion rings Out of green tea Out of frozen squash Checkout lines too long Out of powdered sugar Out of romaine lettuce Out of nonfat peanut butterJuly 27 Out of dill pickles Open milk carton found in fridge Reported accident in parking lot Store too warm Wrong price on cran-apple juice Overcharged Out of carrot juice Oatmeal spilled in bulk section Out of licorice sticks Telephone out of order Out of chocolate milk Out of soap Out of Lava Bars Water on Floor Windows dirty Out of glazed doughnuts Out of iceberg lettuce Out of baby carrots Store decorations are dated Spaghetti sauce on floor Out of St. John's Wort Out of Skippy peanut butter Out of vanilla soy milk Out of butter a. Looking at the data for the three days, categorize the complaint records using a check sheet and prepare a single Pareto Chart. b. Using the results of the Pareto Chart, prepare a fishbone diagram to determine the cause of the problems. c. You've considered a solution for each type of quality problem. What should Tip Top Markets do to improve overall service quality? Problem 2 (12 marks) Item X is a standard item stocked in a company's inventory of component parts. Each year the firm uses about 2,000 of item X. Holding costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more of item X, the cost is $10. What is the EOQ? (round to nearest whole number) b. How many times per year would the store reorder if E0Q units are ordered each time? (round to nearest whole number) C. What is the length of an order cycle if EOQ units are ordered each time? (calculate in terms of year (to 3 decimal places) and then express in terms of workdays by multiplying by 365 (round to nearest workday)) d. What is the total annual inventory control cost if EOQ units are ordered each time? (round to the nearest dollar) e. If ordering costs were to increase by 25% per order, by what percentage would the EOQ change? (round to the nearest percent)Problem 3 - Page 483, Q12 (use the excel template on Moodle to solve this problem) (10 marks) 12. A spring-water bottling company has recently expanded into flavoured water. The marketing manager is predicting an upturn in demand based on the new offerings and the increased public awareness of the health benefits of drinking more water. She has prepared aggregate forecasts for the next six months (in truckloads): L02 Month May Jun Jul Aug Sept Oct Total Forecast 50 60 70 90 70 420 The production manager has gathered the following information: Regular production cost $1,000 per truckload Regular production capacity 60 truckloads per month using 20 employees Overtime production cost $1,500 per truckload Holding cost $200 per truckload per month Backorder cost $5,000 per truckload per month Beginning Inventory 0 The regular production can be supplemented by up to 30 truckloads a month from overtime. Determine the plan that has the lowest total cost. Hint: Use overtime in August-October.Problem 4 - Page 529, Q10, a, b (15 marks) 10. Assume that you are the manager of a shop that assembles power tools. You have just received an order for 50 chain saws, which are to be shipped at the start of week 8. Pertinent information on the chain saw are: LO2 & 3 Load Time Direct Item (weeks) On Hand Components Chain Saw ..ka...: 2 15 A (2). B(1). C(3) A 10 E (3), D () 5 D (2). F (3) 30 E (2). D (2) 20 mo 10 F 30 a. Draw the product structure tree for the chain saw and an assembly time chart for this order. b. Develop the material requirements plan for component E and its parents using lot-for-lot ordering.Problem 5- Page 611, Q3 (3 marks) 3. A cell uses 90 kg of a certain material each day. The material is transported in vats that hold 54 kg each. Cycle time for a kanban is about two hours. The manager has assigned a safety factor of .50. The plant operates on an eight-hour day. How many kanbans are needed? LOG Problem 6- Page 612, Q10 (3 marks) 11. Calculate the take time for a service system that is intended to perform a standardized service. The system will have a total work time of 440 minutes per day, two 10-minute breaks, and an hour for lunch. The service system must process 90 jobs a day. LO4 Problem 7 (10 marks) A parts distributor has an annual demand for machine parts of 10,000 per year with average cost of $10 per unit. There are two options for shipping this from Kuala Lumpur, Malaysia, (1) a combination of ship and train that will take 30 days at a cost of $3 per unit or (2) a combination of ship and truck that will take 20 days at a cost $4 per unit. The holding cost rate is 30% of unit cost per year. a. Which mode of transportation is more economical? (round to the nearest dollar) b. Calculate the annual total shipping costs if the parts distributor keeps a safety stock of 100 units for option (1) and a safety stock of 50 units for option (2) (round to the nearest dollar)?Problem 8 - Page 677 Q8 (15 marks) 8. The following table shows orders to be processed at a machine. LO3 a. Determine the processing sequence using each of these priority rules: (1) CR, (2) MST, (3) SPT, (4) EDD. b. Determine the performance of each rule using (1) average flow time, (2) average days late. c. Is one rule superior to the others? Job Processing Time (days) Due Date (days) 20 10 18 monos 25 17 35Problem 9 - Page 677 Q11 (9 marks) 11. Given the operation times in the two-work-centre flow shop below: a. Develop a job sequence that minimizes total idle time at Work Centre 2. b. Construct a load Gantt chart for the activities at the two work centres, and determine work centre 2's idle time. LO3 Job Times (minutes) A B C D E Work Centre 1 20 16 43 60 35 42 Work Centre 2 27 30 51 12 28 24 (minimizing idle time accomplishes the same task as minimizing make-span)