DevinHarrisMidterm Assignment-V2_SOP-7200-nov16
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Thomas Edison State College *
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7200
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Industrial Engineering
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Feb 20, 2024
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SOP-7200: Strategic Operations Management
Comprehensive Midterm Assignment – Version 2
Your Name: Devin Harris
Course Session: SOP-7200-MB900
Answer the following four questions. Be sure to answer all parts of the questions thoroughly. (25 points each)
1.
Alyssa’s Custom Cakes currently sells 5 birthday, 2 wedding, and 3 specialty cakes each month for $50, $150, and $100 each, respectively. It takes 90 minutes to produce a birthday cake, 240 minutes to produce a wedding cake, and 60 minutes to produce a specialty cake. Alyssa’s current multifactor productivity ratio is 1.25.
a)
Use the multifactor productivity ratio provided to calculate the average cost of the cakes produced. (5x50) + (2x150) + (3x100) = $850
5+2+3 / 1.25 = 8
($850/10) x 8 = $680
$680 / 10 = $68
average cost of cakes produced
b)
Calculate Alyssa’s labor productivity ratio in dollars per hour for each type of cake. (1 / 1.5) x $50 = $33.33
per hour for each type of birthday cake labor productivity ratio
(1 / 4) x $150 = $37.50
per hour for each type of wedding cake labor productivity ratio
(1 / 1) x $100 = $100.00
per hour for each type of specialty cake labor productivity ratio
c)
Based solely on the labor productivity ratio which cake should Alyssa try to sell the most. Specialty cakes, being that they produce the most amount of money per hour labor wise.
d)
Based on your answer in part (a), is there a type of cake Alyssa should stop selling?
$50 - $68 = -$18
$150 - $68 = $82
$100 - $68 = $32
Alyssa should stop selling birthday cakes
, due to the fact that she is taking a loss with every sale of this type of cake at -$18, whereas the other two types of cakes bring in great amounts of profits at $82 and $32.
SOP-7200: Strategic Operations Management
2.
Consider the following data for a project never before attempted by your company: a)
Draw the network diagram for this project.
b) Identify the critical path and estimate the project’s duration.
A-C-E = 5 + 2 + 4 = 13 weeks
B-D-E = 3 + 5 + 4 = 12 weeks
B-D-F = 3 + 5 + 7 = 15 weeks
Critical Path & the estimate of the project’s duration
c) Calculate the slack for each activity.
Activity
Expected Time (weeks)
Immediate Predecessor(s)
A
5
-----
B
3
-----
C
z2
A
D
5
B
E
4
C, D
F
7
D
B-D-F do not
have slack (
zero
)
Slack of activity E = Duration of B-D-F – Duration of B-D-E = 15 – 12 = 3 weeks
Slack of activity A, C = Duration of A-C-E - Duration of B-D-E = 15 – 13 = 2 weeks
Activity
Slack (weeks)
A
2
B
0
C
2
D
0
E
3
C
A
D
E
B
F
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