Answered: Supervisor Tom Choi at Tempe Equipment…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Supervisor Tom Choi at Tempe Equipment Company
is concerned that material is not arriving as promptly as needed at
work cells. A new kanban system has been insta lled, but there seems
to be some delay in getting the material moved to the work cells so
that the job can begin promptly. Choi is interested in determining
how much delay there is on the part of his highly paid machinists.
Ideally, the delay would be close to zero. He has asked his assistant
to determine the delay factor among his 10 work cells. The assistant
collects the data on a random basis over the next 2 weeks and
determines that of the 1,200 observations, 105 were made while the
operators were waiting for materials. Use a 95% confidence level
and a ±3% acceptable error. What report does he give to Choi?

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