Concept explainers
Sarah’s Organic Soap Company makes four kinds of organic liquid soap: “regular,” “lavender,” “citrus,” and “tea tree.” Demands for the four scents are 150, 120, 75, and 50 kgs per hour, respectively. Sarah’s production process can produce any soap at the rate of 450 kgs per hour, but 1.5 hours are needed to switch between scents. During those switchover times, the process doesn’t produce any soap. Sarah’s wants to choose a production
- a. Suppose Sarah’s produces 12,000 kgs of regular, 9600 kgs of lavender, 6000 kgs of citrus, and 4000 kgs of tea tree per batch. How much soap (kgs) can Sarah’s produce per hour?
- b. Suppose Sarah’s produces 12,000 kgs of regular, 9600 kgs of lavender, 6000 kgs of citrus, and 4000 kgs of tea tree per batch. What is the utilization (%) of the process?
- c. Suppose Sarah’s produces 12,000 kgs of regular, 9600 kgs of lavender, 6000 kgs of citrus, and 4000 kgs of tea tree per batch. How much inventory (kgs) do they have on average of lavender soap?
- d. How many kgs of “regular” should Sarah’s produce before switching over to another scent?
Want to see the full answer?
Check out a sample textbook solutionChapter 7 Solutions
Operations Management
Additional Business Textbook Solutions
Operations Management
Operations Management
Principles Of Operations Management
Operations Management: Processes and Supply Chains (11th Edition)
Operations and Supply Chain Management 9th edition
Operations Management: Sustainability and Supply Chain Management (12th Edition)
- Relevant Costs and Quality Improvement Lightening Bulk Company is a moving companyspecializing in transporting large items worldwide. The firm has an 85% on-time delivery rate.Thirteen percent of the items are misplaced and the remaining 2% are lost in shipping. On average,the firm incurs an additional $65 per item to track down and deliver misplaced items. Lost items costthe firm about $300 per item. Last year, the firm shipped 6,000 items with an average freight bill of$200 per item shipped.The firm’s manager is considering investing in a new scheduling and tracking system costing$125,000 per year. The new system is expected to reduce misplaced items to 1% and lost items to0.5%. Furthermore, the firm expects total sales to increase by 10% with the improved service. Theaverage contribution margin ratio on any increased sales volume, after cost savings associated witha reduction in misplaced and lost items, is expected to be 37.5%.Required1. Based on a relevant cost analysis, should…arrow_forwardThe recipe for a fruit smoothie requires 2 cups of fruit per 6 cups of yogurt to maintain a 1/3 ratio. While making the fruit smoothie, Suzy accidentally puts 3 cups of fruit into the pitcher. How many cups of yogurt should be put out n the pitcher to maintain the ratio of 1/3?arrow_forwardsniparrow_forward
- 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.arrow_forwardA Customer Relationship Management System (CRMS) keeps track of customer requirements including past purchase history and preferences. True Falsearrow_forwardSticky Manufacturing produces a variety of adhesive products. On one production line,the company fills one-quart containers with its Skin-Free™ adhesive, a glue that bonds woodand other substances together but does not adhere to human skin in any way.The process yield on the Skin-Free™ line is 92%. One-half pound of Chemical SKF is addedat the beginning of the process for every quart of Skin-Free™ started. The standard price forChemical SKF is $15.00 per pound.Calculate the standard quantity of Chemical SKF consumed for every good unit of output ofSkin-Free™. Then, calculate the standard cost of Chemical SKF in one good quart of Skin-Free™.arrow_forward
- The recipe for a fruit smoothie requires 2 cups of fruit per 6 cups of yogurt to maintain a 1/3 ratio. While making the fruit smoothie, Suzy accidentally puts 3 cups of fruit into the pitcher. How many cups of yogurt should Suzy add to the pitcher to maintain the 1/3 ratio?arrow_forwardWhich of the following cannot be considered a benefit of implementing HACCP?-increase in quality prepared foods-increase in inventory management-decrease is product waste-decrease in employee turnoverarrow_forwardThe UCC only covers goods transaction, not services transactions. True Falsearrow_forward
- A chemical process involves adding various agents to a vat and then waiting for theagents to react to make a final compound. The vat holds up to 1000 gallons. Chemicalagents are added to the vat at a rate of 4.5 gallons per minute. Once the agents have beenadded to the vat, the reaction takes 85 minutes no matter the actual number of gallonsin the batch. After the batch is complete, the vat must be cleaned. Cleaning always takes15 minutes. What is the setup time of this process?a. 15 minutes c. 100 minutesb. 85 minutes d. 222.22 minutesarrow_forwardBestLine Hardware In spring of last year, BestLine Hardware undertook an ambitious program to overhaul their supply chain. In early planning, BestLine predicted that they could save over 25% of their entire supply chain costs by streamlining and optimizing their practices. One of the areas that had the most promise for savings and efficiency was that of order communication and fulfillment. In the existing system, Bestline’s inventory management department triggered a request to the ordering department. The ordering department then created an order and faxed it out to one of their suppliers. The supplier marked down on the fax what could be fulfilled against the order and would fax it back to BestLine for processing. Over time, this fax-based system proved to be inefficient and error-prone. Faxes were often lost or garbled, and hand-written comments could be very difficult to interpret accurately. As a part of their supply-chain efficiency effort, BestLine decided that they would try to…arrow_forwardBased on the case study below, In what way would unmet guarantees affect HP CSR.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.