operations
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chapter_121314_hw.docxChapter 12
2. Yasuko's Art Emporium (YAE) ships art from its studio located in the Far East to its distribution center located on the West Coast of the United States. YAE can send the art either via transoceanic ship freight service (15 days transit) or by air freight (2 days transit time). YAE ships 18,000 pieces of art annually.
· (a) Calculate the average annual transportation inventory when sending the art via transoceanic ship freight service.
· (b) Calculate the average annual transportation inventory when sending the art via air freight.
(c) What additional information is needed to compare the two alternatives?
8. A technology problem has rendered some of the inventory at FFF (Problem 6) obsolete. FFF estimates that the risk cost of its inventory is now 10 percent.
· (a) Calculate the new annual holding cost rate.
(b) Calculate the new total annual holding costs for FFF.
14. In an effort to reduce its inventory, Rapid Grower is offering Greens, a local nursery (Problems 12 and 13), two additional price breaks to consider. If the nursery orders a three-month supply, the cost per bag is $16. If Greens orders a six-month supply, the cost per bag is $14.50. Should Greens change its order quantity calculated in Problem 13?
16. Sam's Auto Shop services and repairs a particular brand of foreign automobile. Sam uses oil filters throughout the year. The shop operates 52 weeks per year, and weekly demand is 150 filters. Sam estimates that it costs $20 to place an order and his annual holding cost rate is $3 per oil filter. Currently, Sam orders in quantities of 650 filters. Calculate the total annual costs associated with Sam's current ordering policy.
18. The local Office of Tourism sells souvenir calendars. Sue, the head of the office, needs to order these calendars in advance of the main tourist season. Based on past seasons, Sue has determined the probability of selling different quantities of the calendars for a particular tourist season.
|
Demand for Calendars |
Probability of Demand |
|
75,000 |
0.15 |
|
80,000 |
0.25 |
|
85,000 |
0.30 |
|
90,000 |
0.20 |
|
95,000 |
0.10 |
The Office of Tourism sells the calendars for $12.95 each. The calendars cost Sue $5 each. The salvage value is estimated to be $0.50 per unsold calendar. Determine how many calendars Sue should order to maximize expected profits.
20. Given the following list of items,
(a) Calculate the annual usage cost of each item.
(b) Classify the items as A, B, or C.
22. Tax Preparers, Inc. works 250 days per year. The company uses adding machine tape at a rate of eight rolls per day. Usage is believed to be normally distributed with a standard deviation of three rolls during lead time. The cost of ordering the tape is $10, and holding costs are $0.30 per roll per year. Lead time is two days.
· (a) Calculate the economic order quantity.
· (b) What reorder point will provide an order-cycle service level of 97 percent?
· (c) How much safety stock must the company hold to have a 97 percent order-cycle service level?
· (d) What reorder point is needed to provide an order-cycle service level of 99 percent?
(e) How much safety stock must the company hold to have a 99 percent order-cycle service level?
Chapter 13
2. Jill has decided that the BackPack Company must have very good customer service. She has asked you to develop a level aggregate plan using inventories but not back orders. All demand must be met each period. You must:
· (a) Calculate the aggregate production rate.
· (b) Calculate the appropriate workforce given the aggregate production rate.
· (c) Show what would happen if this plan were implemented.
· (d) Calculate the costs of this plan.
· (e) Evaluate the plan in terms of cost, customer service, operations, and human resources.
4. Now that you have calculated the number of workers needed each period in Problem 3, Jill wants to see how the plan would actually work. You need to:
· (a) Show what would happen if this plan were implemented.
· (b) Calculate the costs associated with this plan.
(c) Evaluate the plan in terms of cost, customer service, operations, and human resources.
8. Calculate the size of the workforce needed for the company to meet average weekly demand.
12. Develop a chase aggregate plan for Draper using a permanent workforce of 12 employees supplemented by overtime. All demand must be met each period.
· (a) Show what would happen if this plan were implemented.
· (b) Calculate the costs associated with this plan.
(c) Evaluate the plan in terms of cost, customer service, operations, and human resources.
Chapter 14
18. Using the planned orders generated in Problem 17, complete inventory records for components AB501, AB511, and AB521. Use the lot size rule, lead time, and usage information given in Problem 12.
20. The Yankee Machine Shop currently has three machines working in Work Center 111, eight hours per day, five days per week, a utilization rate of 90 percent, and an efficiency rate of 90 pecent.
· (a) Calculate the available capacity.
· (b) Is the available capacity enough to complete the orders given in Problem 19 that are already scheduled in Work Center 111? If not, how much additional capacity is needed?
22. Unfortunately, after extending the work day from eight hours to ten hours, the Yankee Machine Shop has noted that efficiency has decreased to 80 percent. Given this new piece of information, is there enough capacity to complete the orders given in Problem 19?
· (a) Calculate the capacity available in Work Center 111 for week 13.
(b) Will this plan provide sufficient capacity to complete the orders given in Problem 23? If not, what do you recommend be done?
