Quality and Inventory Management

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Problems.docx

Work through the problems in Excel.  Enter your answers in the following Attach your Word file and Excel spreadsheet where indicated.  YOU MUST SUBMIT YOUR EXCEL SPREADSHEET OR OTHER WORK IN ORDER TO RECEIVE CREDIT FOR THE ASSIGNMENT.  FAILURE TO SUBMIT THE EXCEL SPREADSHEET OR OTHER WORK WILL RESULT IN A GRADE OF 0.

You will only have access to the problems. Therefore, complete all of the homework problems in Excel, and then enter your answers and upload your Excel file.

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Question 1 10 pts

1. An air-conditioning repair department manager has compiled data on the primary reason for 41 service calls for the previous week, as shown in the table. Using the data, make a check sheet for the problem types for each customer type, and then construct a Pareto diagram for each type of customer.

Upload your check sheet and Pareto diagram as an Excel file.

Job Number

Problem/Customer Type

Job Number

Problem/Customer Type

Job Number

Problem/Customer Type

301

F/R

315

F/C

329

O/C

302

O/R

316

O/C

330

N/R

303

N/C

317

W/C

331

N/R

304

N/R

318

N/R

332

W/R

305

W/C

319

O/C

333

O/R

306

N/R

320

F/R

334

O/C

307

F/R

321

F/R

335

N/R

308

N/C

322

O/R

336

W/R

309

W/R

323

F/R

337

O/C

310

N/R

324

N/C

338

O/R

311

N/R

325

F/R

339

F/R

312

F/C

326

O/R

340

N/R

313

N/R

327

W/C

341

O/C

314

W/C

328

O/C

Key Problem type:

N = Noisy

F = Equipment failure

W = Runs warm

O = Odor

Customer type:

C = Commercial customer

R = Residential customer

 

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Question 2 10 pts

Prepare a run chart similar to Figure 9.11 on page 403 for the occurrences of defective computer monitors based on the following data, which an analyst obtained from the process for making the monitors. Workers are given a 15-minute break at 10:15 a.m. and 3:15 p.m., and a lunch break at noon. What can you conclude?

Upload your Excel file with the run chart.  Be sure to include your conclusion with the chart.

Interval Start Time

Number of Defects

Interval Start Time

Number of Defects

Interval Start Time

Number of Defects

  8:00

1

10:45

0

2:15

0

  8:15

0

11:00

0

2:30

2

  8:30

0

11:15

0

2:45

2

  8:45

1

11:30

1

3:00

3

  9:00

0

11:45

3

3:30

0

  9:15

1

  1:00

1

3:45

1

  9:30

1

  1:15

0

4:00

0

  9:45

2

  1:30

0

4:15

0

10:00

3

  1:45

1

4:30

1

10:30

1

  2:00

1

4:45

3

 

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Question 3 10 pts

Prepare a scatter diagram for each of these data sets and then express in words the apparent relationship between the two variables. Put the first variable on the horizontal axis and the second variable on the vertical axis.

Upload your Excel file with both scatter diagrams.  Be sure to include your conclusions about each scatter diagram.

1.  

Age

24

30

22

25

33

27

36

58

37

47

54

28

42

55

Absenteeism rate

6

5

7

6

4

5

4

1

3

2

2

5

3

1

2.  

Temperature (°F)

65

63

72

66

82

58

75

86

77

65

79

Error rate

1

2

0

0

3

3

1

5

2

1

3

 

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Question 4 10 pts

· Determine an A-B-C classification for these items:

Item

Unit Cost

Annual Volume (00)

1

$100

25

2

    80

30

3

    15

60

4

    50

10

5

    11

70

6

    60

85

7

    10

60

     Class A item(s):

     Class B item(s):

     Class C item(s):

· Find the EOQ given this information: D = 4,500 units/year, S = $36, and H = $10 per unit per year.

      EOQ = units

· Find the economic production quantity given this information.

D = 18,000 units/year, S = $100, H = $40 per unit per year, p = 120 units per day, and u = 90 units/day

     economic production quantity = units

 

 

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Question 5 10 pts

A bakery buys flour in 25-pound bags. The bakery uses 1,215 bags a year. Ordering cost is $10 per order. Annual carrying cost is $75 per bag.

1. Determine the economic order quantity.  bags

2. What is the average number of bags on hand?  bags

3. How many orders per year will there be?   

4. Compute the total cost of ordering and carrying flour. 

      $

  5. If holding costs were to increase by $9 per year, how much would that affect the minimum total annual cost?  

     increase or decrease? 

     amount of change?  $

 

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Question 6 10 pts

A food processor uses approximately 27,000 glass jars a month for its fruit juice product. Because of storage limitations, a lot size of 4,000 jars has been used. Monthly holding cost is 18 cents per jar, and reordering cost is $60 per order. The company operates an average of 20 days a month.

1. What penalty is the company incurring by its present order size?  

     $ per month

  2. The manager would prefer ordering 10 times each month but would have to justify any change in order size. One possibility is to simplify order processing to reduce the ordering cost. What ordering cost would enable the manager to justify ordering every other day (i.e., 10 times a month)?   

     $ per month  (round to two decimal places)