FALL 2011 2011
Deadline: October 26,
Middle East Technical University – Northern Cyprus Campus
BUS 361 Operations Management
Homework 1 - Solutions
1. Fruit Computer Company manufactures memory chips in lots of ten chips. From past experience, Fruit knows that 80% of all lots contain 10% (1 out of 10) defective chips, 20% of all lots contain 50% (5 out of 10) defective chips. If a good batch (that is, 10% defective) of chips is sent on to the next stage of production, processing costs of $1000 are incurred, and if a bad batch (that is, 50% defective) is sent on to the next stage of production, processing costs of $4000 are incurred. Fruit also has the alternative of reworking a batch at a cost of $1000. A reworked batch is
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∑
b.
Balance Delay (D) =
b1= 3, b2= 1, b3= 0, b4= 3, b5= 5, b6= 8
̅ = 20/6 = 3.33,
Workload Imbalance (B) = √
c. Lower bound on number of workstations =
[
]
[∑
] =[
]
LB[D] = 0,
LB[B] =0.
None of the lower bounds are equal to the obtained objective values (K*, D, B). Thus, we do not know whether the solution obtained by RPW heuristic is optimal or not.
For services, the change would be more at a personal or even psychological level. From a value perspective, value is created
Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units, and best case in which sales = 30,000 units.
The franchising is the chain of any particular business to run by diverse firms or affiliation successfully. The franchiser grants working their business attach to franchisee under franchiser 's term and condition. Assorted foundations business has different term and condition for its franchisee. Franchising business generally run in the regular lifestyle industry like McDonald 's, pizza cabin, domino 's, Subway at cetera. Some franchising chains similarly run in the organization gives efficient Western Union, Money gram, Post Shop et cetera. The greatest relationship of franchising is Subway restaurant
A company sells computers at a selling price of $1,800 each. Each computer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be under the warranty at an average cost of $150 each. During November the company sold 30,000 computers and 400 computers were serviced
Federal police are several agencies working to together to combat crime that affects the country as a whole. Federal police function to enforce the United States Code. For example federal police assist with interstate commerce issues, interstate criminal activities, terrorism, international crimes, and assist state and local police also.
The subject to describe is policing organizations at various levels. The author will identify, compare, and contrast the policing function at the local, state, and federal organizational levels (CJA/484 – Criminal Justice Administration Capstone). The author will analyze how the organizational, management, administration, and operational functions at the local, state, and federal levels are similar or different and why (CJA/484 – Criminal Justice Administration Capstone). The leadership characteristics and responsibilities pertaining to each organizational level will be identified (CJA – Criminal
This is an introduction to the case study of Somerset Furniture. The main talk of the event would be about global supply chain and its impact towards Somerset furniture. In this case study we reverse the history, background, and anatomy of Somerset Furniture. From the introduction of the company we learn about the journey needed in developing and manufacturing the product lines. The journey of Somerset Furniture will dictate on why the company started to outsource and also learn about the time frame involving in planning, processing, developing, shipment and manufacturing of the product lines.
Consider a firm with a daily demand of 100 units, a production rate per day of 500 units, a setup cost of $200, and an annual holding cost per unit of $10. Suppose that the firm operates 300 days per year. How many units of inventory must their storage area be able to hold?
Estimate the base (initial) cost of each alternative. Here, you just need to put in the appropriate RED input from the information in the case study. The answers will be spit out. Which alternative has the lower total cost? Why?
Q1: A manufacturer’s average work-in-process inventory for a certain part is 1,000 units. The workstation produces this part at the rate of 200 units per day. What is the average time a unit spends at this workstation? Inventory, , Throughput, . Thus, Flow time, . A unit spends an average time of 5 days at this workstation. Q2: The Wilcox Student Health Center has just implemented a new computer system and service process to “improve efficiency.” As pharmacy manager, you are concerned about waiting time and its potential impact on college students who “get no respect.” All prescriptions (Rxs) go through the following process: Drop-off ! Fill Rx ! Pick-up ! Cashier Assume that students arrive to drop-off Rxs at a steady rate of 2 Rxs per
Gioe Melaney is the general director of Southern Toro – a subsidiary company included in the distribution system of Toron Coporation in Galveston, Taxas.
3.1 For each hotel, what is the role of technology and the role of operations
1. It has been said that forecasting using exponential smoothing is like driving a car by looking in the rear-view mirror. What are the conditions that would have to exist for driving a car that are analogous to the assumptions made when using exponential smoothing?
Operations management is the activity of managing the resources which are devoted to the production and delivery of products and services. Operations management not only producing physical goods but also satisfying customers. Not only that, most of the organizations consist operations function. As operations function is part of organization’s responsibility which is important every organization about the outcome of product and services.
As I entered the remaining classes in my concentration, Operations Management, I realized how each particular class subject had all come together, and how each was interrelated. Each class, each subject became more important to me as I realized their importance in the role of an operations manager.