While it is important to manufacturing firms little can be done

Question

While it is important to manufacturing firms, little can be done to improve supply chain strategy in most service organizations.

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Q: A retailer experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow. Period 1 2 3 4 5 6 Requirement 7 8 9 11 12 7 Costs associated with operations are as follows: Wages = $2,000 per worker per month Hiring cost = $1,000 per worker Layoff cost = $1,500 per worker The current workforce level is 10 workers. Use the spreadsheet approach and the preceding data to answer the following questions: a. What is the total cost of a staffing plan, including the cost of regular wages, hiring, and layoffs using a chase strategy with hiring and layoffs, but no overtime? b. What is the total cost of the staffing plan, using a level strategy in which no overtime is allowed and the undertime paid for? c. Suppose that overtime is allowed up to 25% of the regular-time capacity, and that overtime wages are 150% of the regular-time rate. What is the total cost of the level strategy with overtime and undertime that also minimizes undertime?

Q: Happiness, Inc. uses a Kanban system. The daily demand for the most critical part, the Smylie, is 400 units over an eight-hour production period. The average waiting time for a container of Smylies is 30 minutes. The processing time for a container filled with Smylies is 6 minutes, and a container holds 5 units. If the company wishes to use a 5% policy variable, how many containers are needed?

Q: The single milling machine at Fred's Manufacturing was severely overloaded last year. The plant operates 8 hours per day, 5 days per week, and 50 weeks per year. Management prefers a capacity cushion of 20 percent. Two major types of products are routed through the milling machine. The annual demand for product A is 4,000 units and 3,000 units for product B. The batch size for A is 20 units and 30 units for B. The standard processing time for A is 0.5 hours/unit and 0.8 for B. The standard setup time for product A is 2 hours and 8 hours for product B. How many new milling machines are required if Fred's does not resort to any short-term capacity options?

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Q: A bank randomly looks at loan applications and checks them for errors. Ten applications and the number of errors identified on the applications are found in the following table. When the process is working correctly, the average number of errors found is 2. Construct a c-chart to determine if the process is in control. Application number Number of errors 1 3 2 0 3 1 4 0 5 3 6 2 7 4 8 4 9 1 10 1

Q: Thermostats are subjected to rigorous testing before they are shipped to air conditioning technicians around the world. Results from the last five samples are shown in the table. Is the process under control? Unit # Sample 1 Sample 2 Sample 3 Sample 4 Sample 5 1 73.5 70.8 72.2 73.6 71.0 2 71.3 71.0 73.1 72.7 72.2 3 70.0 72.6 71.9 72.4 73.3 4 71.1 70.6 70.3 74.2 73.6 5 70.8 70.7 70.7 73.5 71.1

Q: Develop a process chart for one of the following: 1) Researching and writing a paper for your Operations Management class 2) Managing, developing and completing a team project for a Finance (or other) class 3) Planning for your job interview process as you approach graduation (including resume preparation, developing interview skills, researching company backgrounds, etc.) 4) Studying and developing a process improvement plan for a business or other process you are familiar with (e.g., fast food restaurant, obtaining tickets to a university-sponsored event, dry cleaners, book purchases for next term, and the like)

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Q: Because a telephone customer service center has experienced several problems, it has begun to analyze the data from customer complaints. The first step was to construct the following table. Use this data to build a Pareto chart to help identify the "vital few" problems. Process Failure Total Failures Person not available 5 Incorrect information given 12 Phone line busy 7 Long delay 39 Phone tree confusing 20 People unfriendly 17

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Q: Walter White must satisfy an annual demand of 50,000 pounds per year. The setup cost for each batch is $6,500 and once the setup is complete, the product may be produced at the rate of 1800 pounds per day. There is a holding cost of $15 per unit per year and the plant operates on a 350-day production year. How big should the production batch be and how long (in days) will it take to produce the batch?

Q: SimQuick is to be used to simulate the following bank process: Customers arrive at the Entrance Door of the bank with an average time between arrivals of 2.5 minutes. The Line Buffer holds 6 customers. If a customer arrives and the buffer line is filled, the customer leaves. The Work Station Teller's processing time per customer is normally distributed, with a mean of 3.0 minutes and a standard deviation of 0.5 minutes. The Served Customer Buffer in the flowchart is used to count the number of customers processed during the simulation period. A 2-hour period is to be simulated and the simulation should be repeated 30 times. Determine: a) The number of customers served during the 2-hour period; b) The percentage of customers who arrived at the bank and left because the buffer line was full; c) The utilization of the teller (% of time working) during the 2-hour period;

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Q: The three-person crew worked their way through the neighborhood, testing doorknobs and windows and slipping past security systems like a team of ninjas. Of course, they weren't ninjas, but a crew of brazen burglars, hoping to grab cash and other valuables to fence at the next level of their supply chain. Fortune smiles on them on this day in the prestigious Edmond Oaks neighborhood. A lawn maintenance crew is creating a tremendous racket mowing and edging lawns, which completely drowns out the sounds of breaking glass. Details of the day's haul appear in Table C. a. What is the multifactor productivity? b. What is the labor productivity? Table C: The Haul ITEM SALES PRICE LABOR MATERIAL Krugerrand $1,500 1 hr $2 Flat screen TV $250 .25 $1 $200 cash $200 .05 $45 Lava lamp $5 .15 $25 Rolex watch $180 .10 $1 Workers are paid at a flat rate of 20% of the sales price of the merchandise. Materials cost represents the cost of gasoline and surgical gloves, and overhead is 20% of the sales price of the merchandise.

Q: Consider this list of jobs that have just arrived and are ready for processing. They all require processing first on machine 1 and then on machine 2. Both machines are now idle. Develop a schedule that minimizes makespan and calculate this makespan time. Now assume that each job can be split into two jobs, each having half the duration on both machine 1 and machine 2. Using the original sequence that minimized average flow time, calculate the flow times for all split jobs What is the effect of this new schedule on the average flow time for these split jobs? Job Machine 1 Machine 2 1 14 6 2 11 12 3 16 14 4 12 8 5 22 9 6 13 15 7 10 12 8 8 13

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