OPERATIONS MANAGEMENT
2nd Edition
ISBN: 9781260238877
Author: CACHON
Publisher: RENT MCG
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Chapter 5, Problem 11CQ
Summary Introduction
To identify: The highest possible yield a process can obtain.
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A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and the parameters of each process are as follows:
Process 1
Process 2
35 parts/ hour
4 hours/ day
15 parts/hour
7 hours/day
20%
9%
Production rate
Daily production time
Percent of parts rejeted based on visual inspection
Assume that the daily demand for hubs allows all defect-free hubs to be sold. Additionally, tested or rejected hubs cannot be sold.
Find the process that maximizes profit per day if each part is made from Php 200 worth of material and can be sold for Php 1,500. Both processes are fully automated, and variable
overhead cost is charged at the rate of Php 2,000 per hour.
A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for
manufacturing, and the parameters of each process are as follows:
Process 1
Process 2
Production Rate
35 parts per hour
15 parts per hour
Daily production time
4 hours per day
7 hours per day
Percent of Parts Rejected
20%
9%
Assume that the daily demand for hubs allows all defect-free items to be sold. Additionally, defective hubs cannot be sold and their material cannot be recovered anymore. Find the process that minimizes the total cost per piece if each part is made from $4 worth of material. Both processes are fully automated, and the variable overhead cost is charges at $40 per hour.
Wellplace Insurance Company processes insurance policy applications in batches of 25. One day, they had fifteen batches to
process and, after inspection, it was found that four batches had nonconforming policies. One batch had one nonconformance,
another had five, another had two, and another had six nonconformance.
a. What was the proportion nonconforming for each batch? Round your answers to two decimal places.
The proportion nonconforming for the first batch:
The proportion nonconforming for the second batch:
The proportion nonconforming for the third batch:
The proportion nonconforming for the fourth batch:
b. What was the nonconformance per unit (NPU) in total for the fifteen batches? Round your answer to three decimal places.
Total nonconformances per unit for all batches:
Chapter 5 Solutions
OPERATIONS MANAGEMENT
Ch. 5 - Prob. 1CQCh. 5 - Prob. 2CQCh. 5 - Prob. 3CQCh. 5 - Prob. 4CQCh. 5 - Prob. 5CQCh. 5 - Prob. 6CQCh. 5 - Prob. 7CQCh. 5 - Prob. 8CQCh. 5 - Prob. 9CQCh. 5 - Prob. 10CQ
Ch. 5 - Prob. 11CQCh. 5 - Prob. 12CQCh. 5 - Prob. 13CQCh. 5 - Prob. 14CQCh. 5 - Prob. 15CQCh. 5 - Prob. 16CQCh. 5 - Prob. 1PACh. 5 - Prob. 2PACh. 5 - Prob. 3PACh. 5 - Prob. 4PACh. 5 - Prob. 5PACh. 5 - Prob. 6PACh. 5 - Prob. 7PACh. 5 - Prob. 8PACh. 5 - Prob. 9PACh. 5 - The help desk at Triple Stacked handles calls from...Ch. 5 - Prob. 11PACh. 5 - A pharmaceutical company creates a compound with a...Ch. 5 - Prob. 13PACh. 5 - Prob. 14PACh. 5 - Prob. 15PACh. 5 - Prob. 16PA
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