Concept explainers
Derek is disappointed in his high-speed Internet service. Although the Internet is seldom down, it kicks into slow mode quite often, which Derek considers to be a failure. He has tried three service providers with varying degrees of success. The number of failures in a typical eight-hour day and the average time to regain high-speed service are shown below. Derek must choose one of the following options. Calculate the system availability for each option. Which service would you recommend?
Want to see the full answer?
Check out a sample textbook solutionChapter 4 Solutions
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
Additional Business Textbook Solutions
Operations Management, Binder Ready Version: An Integrated Approach
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Business in Action
Business in Action (8th Edition)
Operations Management
Operations Management: Processes and Supply Chains (11th Edition)
- Will and Jason Najami are going to open a swimming pool service this summer. They will put in pools, repair damaged ones, and provide a pool cleaning service. They have decided to use a service guarantee as their primary service recovery tool. How can they make sure that their service guarantee is effective?arrow_forwardMrs. Stellar Conch is the owner of an expanding business operating in bakery industry located in Kinston, Jamaica. Over the last few years business has been great. However, she believes it is time to grow and be more profitable. As such Mrs. Conch has decided to invest in a new sophisticated convection oven that would boost production levels by 200% in a more efficient manner. As an astute assistant manager to Mrs. Conch have asked you to analyze the following variables to assist in informing the correct decision: . Mrs. Conch is considering investing in one of two convection ovens - Type ABC and Type XYZ; The initial investment costs of ovens Type ABC and Type XYZ are both $120,000 each; Over a 5 year period directly following the investment, projected revenue attributed to the Type ABC oven is $70,000 a year. While projected expenditure is $40,000 a year for the Type ABC oven; This is not the same for the Type XYZ oven investment, which is projected to only have revenue and…arrow_forwardMrs. Stellar Conch is the owner of an expanding business operating in bakery industry located in Kinston, Jamaica. Over the last few years business has been great. However, she believes it is time to grow and be more profitable. As such Mrs. Conch has decided to invest in a new sophisticated convection oven that would boost production levels by 200% in a more efficient manner. As an astute assistant manager to Mrs. Conch have asked you to analyze the following variables to assist in informing the correct decision: Mrs. Conch is considering investing in one of two convection ovens - Type ABC and Type XYZ; The initial investment costs of ovens Type ABC and Type XYZ are both $120,000 each; Over a 5 year period directly following the investment, projected revenue attributed to the Type ABC oven is $70,000 a year. While projected expenditure is $40,000 a year for the Type ABC oven; This is not the same for the Type XYZ oven investment, which is projected to only have revenue and…arrow_forward
- A real estate investor has the opportunity to purchase land currently zoned residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to lease the land to a large discount firm that wants to open a new store on the property. However, if the zoning change is not approved, the investor will have to sell the property at a loss. Profits (in thousands of dollars) are shown in the following payoff table: State of Nature Rezoning Approved Rezoning Not Approved Decision Alternative S1 S2 Purchase, d1 590 -160 Do not purchase, d2 0 0 If the probability that the rezoning will be approved is 0.5, what decision is recommended?Recommended decision: What is the expected profit?Expected profit: $ fill in the blank 2 The investor can purchase an option to buy the land. Under the option, the investor maintains the rights to purchase the land anytime during the next three months while learning more…arrow_forwardFrom the following Is Walmart haveing a Medical and Mental Health Centers is a good idea why or why not? NEWNAN, Ga., Sept. 2, 2020 — Families in the Newnan area can now experience new ways to save money while living better – and healthier – lives through the new Walmart Health center. Opening today, Walmart Healthis located at 1025 Bullsboro Drive, Newnan, GA, adjacent to the Supercenter. This state-of-the-art facility provides quality, affordable and accessible healthcare for members of the Newnan community, so they can get the right care at the right time, right in their community. Walmart Health meets them where they live and shop. The new Walmart Health is partnering with several on-the-ground health providers to be a first-of-its-kind health center to deliver primary care, urgent care, labs, dental, hearing, counseling, x-ray and diagnostics services all in one facility at affordable, transparent pricing regardless of a patient’s insurance status. “As we expand across Georgia,…arrow_forwardEric Andrews has been investigating the possibility of starting a service that willpartner with grocery stores to provide a delivery service for their customers. The idea is that after purchasing their groceries, customers could go to a kiosk in the store, pay a small fee, and have their groceries delivered to their homes within60 minutes. Which of the five forces in Porter’s five forces model do you anticipate will most strongly affect Eric’s potential business and why?arrow_forward
- a service operation can be successful by developing a system that combines characteristics from the three contrasting service designs? Why or why not? Please provide examples.arrow_forwardSilicon Valley Transport Commission (SVTC) has a fleet of maintenance vehicles that includes cars, vans, and trucks. SVTC is currently evaluating four different approaches to help them maintain their fleet of cars and vans efficiently at the lowest possible cost. Their options are: (1) No preventive maintenance at all and repair vehicle components when they fail; (2) Take oil samples at regular intervals and perform whatever preventive maintenance is indicated by the oil analysis; (3) Perform an oil change on a regular basis on each vehicle and perform repairs when needed; (4) perform oil changes at regular intervals, take oil samples regularly, and perform maintenance repairs as indicated by the sample analysis. Option #1 costs nothing to implement and results in two possible outcomes: There is a .10 probability that a defective component will occur, requiring emergency maintenance at a cost of $1,200, or there is a chance that no defects will occur and no maintenance will be…arrow_forwardSituational analysis for keurig coffee machine. Include its strengths, weakness, opportunity, and threat.arrow_forward
- Wind Tunnel Testing – Carbon Bike Frames As an equipment provider for several Olympic cyclists, Carbon Bike Frames (CBF) operates a very expensive wind tunnel facility near San Diego, CA. The wind tunnel is used to find the best compromise between ergonomics and aerodynamics for the cyclist. Presently, more and more cyclists are interested in CBF’s services, so the company considers building a second facility. However, given the enormous costs of the wind tunnel, they also want to explore a more effective use of the current facility. An initial data collection reveals that: The standard fitting time for a cyclist is 2h. On average, the wind tunnel is used for 7 fitting procedures a day (new customers or customers who want a refit). The wind tunnel is available 24 hours a day. CBF offers a free second session should the customer not be entirely satisfied with their bike fit (internally also known as “rework sessions”). About 2 out of 5 customers come back for such a “refit,” which…arrow_forwardWind Tunnel Testing – Carbon Bike Frames As an equipment provider for several Olympic cyclists, Carbon Bike Frames (CBF) operates a very expensive wind tunnel facility near San Diego, CA. The wind tunnel is used to find the best compromise between ergonomics and aerodynamics for the cyclist. Presently, more and more cyclists are interested in CBF’s services, so the company considers building a second facility. However, given the enormous costs of the wind tunnel, they also want to explore a more effective use of the current facility. An initial data collection reveals that: The standard fitting time for a cyclist is 2h. On average, the wind tunnel is used for 7 fitting procedures a day (new customers or customers who want a refit). The wind tunnel is available 24 hours a day. CBF offers a free second session should the customer not be entirely satisfied with their bike fit (internally also known as “rework sessions”). About 2 out of 5 customers come back for such a “refit,” which…arrow_forwardWind Tunnel Testing – Carbon Bike Frames As an equipment provider for several Olympic cyclists, Carbon Bike Frames (CBF) operates a very expensive wind tunnel facility near San Diego, CA. The wind tunnel is used to find the best compromise between ergonomics and aerodynamics for the cyclist. Presently, more and more cyclists are interested in CBF’s services, so the company considers building a second facility. However, given the enormous costs of the wind tunnel, they also want to explore a more effective use of the current facility. An initial data collection reveals that: The standard fitting time for a cyclist is 2h. On average, the wind tunnel is used for 7 fitting procedures a day (new customers or customers who want a refit). The wind tunnel is available 24 hours a day. CBF offers a free second session should the customer not be entirely satisfied with their bike fit (internally also known as “rework sessions”). About 2 out of 5 customers come back for such a “refit,” which…arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.