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operation managment questions




Question;Question;1:You;are designing a grocery delivery business. Via the internet, your company will;offer staples and frozen foods in a large metropolitan area and then deliver;them within a customer-defined window of time. You plan to partner with two;major food stores in the area. What should your competitive priorities be and;what capabilities do you want to develop in your own core and support;processes?;Is it possible for a;project to have more than one critical path? Discuss the implications of such a;situation with respect to each of the following aspects;Project risk;Total available;slack;Resource;dependencies;Responsibilities;of the project manager;Is;it possible for a project to have more than one critical path? Discuss the;implications of such a situation with respect to each of the following aspects;Project risk;Total available slack;Resource dependencies;Question;2:A;flowchart helps us see all of the steps in a process, which in turn helps us;improve the process. It also helps us identify and eliminate any redundant;steps in a process. Using Word tools (SmartArt under the Insert tab), design a;process flow chart for the grocery delivery business in Question 1 above. In;the discussion element of your response, clearly define the steps within the;process and provide a rationale for each step. Include all elements that you;feel are necessary and appropriate to the process of a singular customer. The;assumption is that the process is repeatable for every customer using the;service. Think of the elements that you will be addressing or answering in the;succeeding questions.;Question;3:For;the grocery delivery business addressed in Question 1, the grocery chains that;you are planning to partner with use differing inventory control models.;Company A utilizes the Just-in-Time (JIT) inventory control model and Company B;uses an Economic Order Quantity model. In reviewing your business plan, the;bank loan officer has noticed this. As the loan officer is not overly familiar;with either model, a request has been made of you to provide a description of;each model and an explanation of why partnering with these companies would or;would not create a conflict within your operations. Provide a detailed analysis;of the situation in your business model.;Question;4:A;Quality Assurance (QA) Program is essential to the success of any business.In establishing your grocery delivery;business, what are some of the Quality Control (QC) processes that you envision;employing? Why? Provide examples of potential metrics. Justify your choices.;Question;5;Efficiency is a critical element both in terms of individuals and machinery in;any business. Describe some efficiency measures that you would implement in;your grocery delivery business. What are the analysis tools that you would;utilize to determine the effectiveness of these efficiency measures?;Problem 1;Tried and True Clothing has;opened four new stores in college towns across the state. Data on monthly sales;volume and labor hours are given below. Which store location has the highest;labor productivity?;Store;Annandale;Blacksburg;Charlottesville;Danville;Sales;volume;$40,000;$12,000;$60,000;$25,000;Labor;hours;????250;?????60;????500;????200;Problem 2;Construct a Gantt chart for the project;described by the following set of activities, and indicate the project;completion time;Activity;Activity Predecessor;Time (Weeks);1;?;5;2;?;4;3;1;3;4;2;6;Problem 3;Backwoods American, Inc.;produces expensive water-repellent, down-lined parkas. The company implemented;a total quality-management program in 2005. Following are quality-related;accounting data that have been accumulated for the five-year period after the;program's start.Please calculate failure costs as a;percentage of total quality cost for each year in which the data is provided.;Is there a trend.;Year;2006;2007;2008;2009;2010;Quality;Costs (000s);Prevention;$3.2;10.7;28.3;42.6;50.0;Appraisal;26.3;29.2;30.6;24.1;19.6;Internal;failure;39.1;51.3;48.4;35.9;32.1;External;failure;118.6;110.5;105.2;91.3;65.2;Accounting;Measures (000s);Sales;$2,700.6;2,690.1;2,705.3;2,310.2;2,880.7;Manufacturing;cost;420.9;423.4;424.7;436.1;435.5;Problem 4;AV City stocks and sells a particular brand of laptop. It costs;the firm $625 each time it places an order with the manufacturer for the;laptops. The cost of carrying one laptop in inventory for a year is $130. The;store manager estimates that total annual demand for the laptops will be 1500;units, with a constant demand rate throughout the year. Orders are received;within minutes after placement from a local warehouse maintained by the;manufacturer. The store policy is never to have stockpots of the laptops. The;store is open for business every day of the year except Christmas Day.;Determine the following;a. Optimal order quantity per order;b. Minimum total annual inventory costs;c. The number of orders per year;d. The time between orders (in working days);Problem 5;The Great North Woods;Clothing Company sells specialty outdoor clothing through its catalog. A;quality problem that generates customer complaints occurs when a warehouse employee;fills an order with the wrong items. The company has decided to implement a;process control plan by inspecting the ordered items after they have been;obtained from the warehouse and before they have been packaged. The company has;taken 30 samples (during a 30-day period), each for 100 orders, and recorded;the number of defective orders in each sample, as follows;Sample;Number of Defectives;Sample;Number of Defectives;?1;12;16;?6;?2;14;17;?3;?3;10;18;?7;?4;16;19;10;?5;18;20;14;?6;19;21;18;?7;14;22;22;?8;20;23;26;?9;18;24;20;10;17;25;24;11;?9;26;18;12;11;27;19;13;14;28;20;14;12;29;17;15;?7;30;18;Construct a-chart;for the company that describes 99.74% (3?) of;the random variation in the process, and indicate if the process seems to be;out of control at any time.;Problem 03-02.;The Road King Tire Company in Birmingham;wants to monitor the quality of the tires it manufactures. Each day the company;quality-control manager takes a sample of 100 tires, tests them, and determines;the number of defective tires. The results of 20 samples have been recorded as;follows;Sample;Number of Defectives;Sample;Number of Defectives;?1;14;11;18;?2;12;12;10;?3;?9;13;19;?4;10;14;20;?5;11;15;17;?6;?7;16;18;?7;?8;17;18;?8;14;18;22;?9;16;19;24;10;17;20;23;Construct a-chart;for this process usinglimits;and describe the variation in the process.;Problem 03-06.;One of the stages in the process of making;denim cloth at the Southern Mills Company is to spin cotton yarn onto spindles;for subsequent use in the weaving process. Occasionally the yarn breaks during;the spinning process, and an operator ties it back together. Some number of;breaks is considered normal, however, too many breaks might mean that the yarn;is of poor quality. In order to monitor this process, the quality-control;manager randomly selects a spinning machine each hour and checks the number of;breaks during a 15-minute period. Following is a summary of the observations;for the past 20 hours;Sample;Number of Breaks;Sample;Number of Breaks;?1;3;11;3;?2;2;12;4;?3;4;13;6;?4;1;14;7;?5;5;15;8;?6;3;16;6;?7;2;17;5;?8;4;18;7;?9;0;19;8;10;2;20;6;Construct a-chart;usinglimits;for this process and indicate if the process was out of control at any time.;Answer;Problem 13-06.;The Ambrosia Bakery makes cakes for freezing;and subsequent sale. The bakery, which operates five days a week, 52 weeks a;year, can produce cakes at the rate of 116 cakes per day. The bakery sets up;the cake-production operation and produces until a predetermined numberhas;been produced. When not producing cakes, the bakery uses its personnel and;facilities for producing other bakery items. The setup cost for a production;run of cakes is $700. The cost of holding frozen cakes in storage is $9 per;cake per year. The annual demand for frozen cakes, which is constant over time;is 6000 cakes. Determine the following;a. Optimal;production run quantity (Q);b. Total;annual inventory costs;c. Optimal;number of production runs per year;d. Optimal;cycle time (time between run starts);e. Run;length in working days.;Problem 13-20.;Southwood;Furniture Company is a U.S.-based furniture manufacturer that offshored all of;its actual manufacturing operations to China about a decade ago. It set up a;distribution center in Hong Kong from which the company ships its items to the;United States on container ships. The company learned early on that it could;not rely on local Chinese freight forwarders to arrange for sufficient;containers for the company's shipments, so it contracted to purchase containers;from a Taiwanese manufacturer and then sell them to shipping companies at the;U.S. ports the containers are shipped to. Southwood needs 715 containers each;year. It costs $1200 to hold a container at its distribution center, and it;costs $6000 to receive an order for the containers. Determine the optimal order;size, minimum total annual inventory cost, number of annual orders, and time;between orders.


Paper#46055 | Written in 18-Jul-2015

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