
Concept explainers
a)
To determine: The mean of each sample.
a)

Answer to Problem 20P
Explanation of Solution
Given information:
Sample | |||
1 | 2 | 3 | 4 |
4.5 | 4.6 | 4.5 | 4.7 |
4.2 | 4.5 | 4.6 | 4.6 |
4.2 | 4.4 | 4.4 | 4.8 |
4.3 | 4.7 | 4.4 | 4.5 |
4.3 | 4.3 | 4.6 | 4.9 |
Calculation of mean of each sample:
Sample | ||||
Sl. No. | 1 | 2 | 3 | 4 |
1 | 4.5 | 4.6 | 4.5 | 4.7 |
2 | 4.2 | 4.5 | 4.6 | 4.6 |
3 | 4.2 | 4.4 | 4.4 | 4.8 |
4 | 4.3 | 4.7 | 4.4 | 4.5 |
5 | 4.3 | 4.3 | 4.6 | 4.9 |
Mean | 4.3 | 4.5 | 4.5 | 4.7 |
Table 1
Excel Worksheet:
Sample 1:
The mean is calculated by adding each sample points. Adding the points 4.5, 4.2, 4.2, 4.3 and 4.3 and dividing by 5 gives mean of 4.3. The same process is followed for finding mean for other samples.
Hence, the mean of each sample is shown in Table 1
b)
To determine: The mean and standard deviation when the process parameters are unknown.
b)

Answer to Problem 20P
Explanation of Solution
Given information:
Sample | |||
1 | 2 | 3 | 4 |
4.5 | 4.6 | 4.5 | 4.7 |
4.2 | 4.5 | 4.6 | 4.6 |
4.2 | 4.4 | 4.4 | 4.8 |
4.3 | 4.7 | 4.4 | 4.5 |
4.3 | 4.3 | 4.6 | 4.9 |
Calculation of mean and standard deviation:
Table 1 provides the mean for each sample points.
The mean is calculated by adding each mean of the samples. Adding the points 4.3, 4.5, 4.5 and 4.7 and dividing by 4 gives mean of 4.5.
The standard deviation is calculated using the above formula and substituting the values of mean in the above formula and the resultant of 0.192 is obtained.
Hence, the mean and standard deviation when the process parameters are unknown are 4.5 and 0.192.
c)
To determine: The mean and standard deviation of the sampling distribution.
c)

Answer to Problem 20P
Explanation of Solution
Given information:
Sample | |||
1 | 2 | 3 | 4 |
4.5 | 4.6 | 4.5 | 4.7 |
4.2 | 4.5 | 4.6 | 4.6 |
4.2 | 4.4 | 4.4 | 4.8 |
4.3 | 4.7 | 4.4 | 4.5 |
4.3 | 4.3 | 4.6 | 4.9 |
Calculation of mean and standard deviation of the sampling distribution:
From calculation of mean of each samples, the mean for sampling distribution can be computed, the mean for sampling distribution is 4.5 (refer equation (1)).
The standard deviation of the sampling distribution is calculated by dividing 0.192 with the square root of 5 which gives the resultant as 0.086.
Hence, the mean and standard deviation of the sampling distribution is 4.5 and 0.086 respectively.
d)
To determine: The three-sigma control limit for the process and alpha risk provided by them.
d)

Answer to Problem 20P
Explanation of Solution
Given information:
Sample | |||
1 | 2 | 3 | 4 |
4.5 | 4.6 | 4.5 | 4.7 |
4.2 | 4.5 | 4.6 | 4.6 |
4.2 | 4.4 | 4.4 | 4.8 |
4.3 | 4.7 | 4.4 | 4.5 |
4.3 | 4.3 | 4.6 | 4.9 |
Calculation of three-sigma control limit for the process:
The three-sigma control limits for the process is calculated by multiplying 3.00 with 0.086 (refer equation (2)) and the resultant is added with 4.5 to get an upper control limit which is 4.758 and subtracted to get lower control limit which is 4.242. Using z-factor table z = +3.00 corresponds to 0.4987.
The alpha risk is calculated to be as 0.0026.
Hence, the three-sigma control limits for the process are 4.758 and 4.242.
e)
To determine: The alpha risk for control limits of 4.14 and 4.86.
e)

Answer to Problem 20P
Explanation of Solution
Given information:
Sample | |||
1 | 2 | 3 | 4 |
4.5 | 4.6 | 4.5 | 4.7 |
4.2 | 4.5 | 4.6 | 4.6 |
4.2 | 4.4 | 4.4 | 4.8 |
4.3 | 4.7 | 4.4 | 4.5 |
4.3 | 4.3 | 4.6 | 4.9 |
Formula:
Calculation alpha risk for control limits of 4.14 and 4.86:
The alpha risk is calculated by dividing the difference of 4.86 and 4.5 with 0.086 which gives +4.19 which is the risk is close to zero.
Hence, the alpha risk for control limits of 4.14 and 4.86 is +4.1
f)
To determine: Whether any of the sample means are beyond the control limits.
f)

Answer to Problem 20P
Explanation of Solution
Given information:
Sample | |||
1 | 2 | 3 | 4 |
4.5 | 4.6 | 4.5 | 4.7 |
4.2 | 4.5 | 4.6 | 4.6 |
4.2 | 4.4 | 4.4 | 4.8 |
4.3 | 4.7 | 4.4 | 4.5 |
4.3 | 4.3 | 4.6 | 4.9 |
Determination of whether any of the sample means are beyond the control limits:
Table 1 provides the sample means for each sample. From observation, it can be found that each sample mean are within the control limit of 4.14 and 4.86. Therefore, each sample means lies within the control limits of 4.14 and 4.86.
Hence, there are no sample means which lies beyond the control limits.
g)
To determine: Whether any of the samples are beyond the control limits.
g)

Answer to Problem 20P
Explanation of Solution
Given information:
SAMPLE | |||
1 | 2 | 3 | 4 |
4.5 | 4.6 | 4.5 | 4.7 |
4.2 | 4.5 | 4.6 | 4.6 |
4.2 | 4.4 | 4.4 | 4.8 |
4.3 | 4.7 | 4.4 | 4.5 |
4.3 | 4.3 | 4.6 | 4.9 |
Formula:
Mean Chart:
Range Chart:
Calculation of upper and lower control limits:
SAMPLE | ||||
1 | 2 | 3 | 4 | |
4.5 | 4.6 | 4.5 | 4.7 | |
4.2 | 4.5 | 4.6 | 4.6 | |
4.2 | 4.4 | 4.4 | 4.8 | |
4.3 | 4.7 | 4.4 | 4.5 | |
4.3 | 4.3 | 4.6 | 4.9 | |
Mean | 4.3 | 4.5 | 4.5 | 4.7 |
Range | .3 | .4 | .2 | .4 |
From factors of three-sigma chart, A2 = 0.58; D3 = 0; D4 = 2.11.
Mean control chart:
Upper control limit:
The Upper control limit is calculated by adding the product of 0.58 and 0.325 with 4.5 which yields 4.689.
Lower control limit:
The Lower control limit is calculated by subtracting the product of 0.58 and 0.325 with 4.5 which yields 4.311.
The UCL and LCL for mean charts are 4.686 and 4.311. (4)
A graph is plotted using the UCL and LCL and mean values which shows the points are within the control limits.
Range control chart:
Upper control limit:
The Upper control limit is calculated by multiplying 2.11 with 0.325 which yields 0.686.
Lower control limit:
The lower control limit is calculated by multiplying 0 with 0.325 which yields 0.0.
A graph is plotted using the UCL, LCL and Range values which shows that the points are within the control region.
Hence, all points are within control limits.
h)
To explain: The reason for variations in control limits.
h)

Answer to Problem 20P
Explanation of Solution
Reason for variations in control limits:
The control limits vary because in equation (3) and (4) because of the use of different measure for dispersion to measure the standard deviation and range.
Hence, the difference arises due to the use of different measures for dispersion to the measure the standard deviation and range.
i)
To determine: The control limits for the process and whether the process will be in control.
i)

Answer to Problem 20P
Explanation of Solution
Given information:
Determination of control limits of the process:
Sample mean is given in Table 1.
To calculate the control limits 0.18 is divided by root of 5 and is multiplied by 3 and the resultant is added to 4.4 to give UCL which is 4.641 and subtracted from 4.4 to get the LCL which is 4.159.
The graph shows that the some of the points are above the control limits which make the process to be out of control.
Hence, the process is out of control with UCL=4.641 and LCL=4.159.
Want to see more full solutions like this?
Chapter 10 Solutions
EBK OPERATIONS MANAGEMENT
- Sarah Anderson, the Marketing Manager at Exeter Township's Cultural Center, is conducting research on the attendance history for cultural events in the area over the past ten years. The following data has been collected on the number of attendees who registered for events at the cultural center. Year Number of Attendees 1 700 2 248 3 633 4 458 5 1410 6 1588 7 1629 8 1301 9 1455 10 1989 You have been hired as a consultant to assist in implementing a forecasting system that utilizes various forecasting techniques to predict attendance for Year 11. a) Calculate the Three-Period Simple Moving Average b) Calculate the Three-Period Weighted Moving Average (weights: 50%, 30%, and 20%; use 50% for the most recent period, 30% for the next most recent, and 20% for the oldest) c) Apply Exponential Smoothing with the smoothing constant alpha = 0.2. d) Perform a Simple Linear Regression analysis and provide the adjusted…arrow_forwardRuby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 70 units and is valued at $90 per unit. Inbound shipments from vendor 1 will average 390 units with an average lead time (including ordering delays and transit time) of 4 weeks. Inbound shipments from vendor 2 will average 490 units with an average lead time of 2 weeksweeks. Ruby-Star operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. Part 2 a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $enter your response here.arrow_forwardSam's Pet Hotel operates 50 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag. The following information is available about these bags: > Demand 75 bags/week > Order cost = $52.00/order > Annual holding cost = 20 percent of cost > Desired cycle-service level = 80 percent >Lead time = 5 weeks (30 working days) > Standard deviation of weekly demand = 15 bags > Current on-hand inventory is 320 bags, with no open orders or backorders. a. Suppose that the weekly demand forecast of 75 bags is incorrect and actual demand averages only 50 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)arrow_forward
- Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 2,250 rolls. The cost per roll is $625, and the annual holding cost is 20 percent of the cost. Each order costs $75. a. How many rolls should Yellow Press order at a time? Yellow Press should order rolls at a time. (Enter your response rounded to the nearest whole number.)arrow_forwardPlease help with only the one I circled! I solved the others :)arrow_forwardOsprey Sports stocks everything that a musky fisherman could want in the Great North Woods. A particular musky lure has been very popular with local fishermen as well as those who buy lures on the Internet from Osprey Sports. The cost to place orders with the supplier is $40/order; the demand averages 3 lures per day, with a standard deviation of 1 lure; and the inventory holding cost is $1.00/lure/year. The lead time form the supplier is 10 days, with a standard deviation of 2 days. It is important to maintain a 97 percent cycle-service level to properly balance service with inventory holding costs. Osprey Sports is open 350 days a year to allow the owners the opportunity to fish for muskies during the prime season. The owners want to use a continuous review inventory system for this item. Refer to the standard normal table for z-values. a. What order quantity should be used? lures. (Enter your response rounded to the nearest whole number.)arrow_forward
- In a P system, the lead time for a box of weed-killer is two weeks and the review period is one week. Demand during the protection interval averages 262 boxes, with a standard deviation of demand during the protection interval of 40 boxes. a. What is the cycle-service level when the target inventory is set at 350 boxes? Refer to the standard normal table as needed. The cycle-service level is ☐ %. (Enter your response rounded to two decimal places.)arrow_forwardOakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class A items), those that will be controlled using a continuous review system (B items), and those that will be held in a two bin system (C items). The following table shows the annual dollar usage for a sample of eight SKUs. Fill in the blanks for annual dollar usage below. (Enter your responses rounded to the mearest whole number.) Annual SKU Unit Value Demand (units) Dollar Usage 1 $1.50 200 2 $0.02 120,000 $ 3 $1.00 40,000 $ 4 $0.02 1,200 5 $4.50 700 6 $0.20 60,000 7 $0.90 350 8 $0.45 80arrow_forwardA part is produced in lots of 1,000 units. It is assembled from 2 components worth $30 total. The value added in production (for labor and variable overhead) is $30 per unit, bringing total costs per completed unit to $60 The average lead time for the part is 7 weeks and annual demand is 3800 units, based on 50 business weeks per year. Part 2 a. How many units of the part are held, on average, in cycle inventory? enter your response here unitsarrow_forward
- assume the initial inventory has no holding cost in the first period and back orders are not permitted. Allocating production capacity to meet demand at a minimum cost using the transportation method. What is the total cost? ENTER your response is a whole number (answer is not $17,000. That was INCORRECT)arrow_forwardRegular Period Time Overtime Supply Available puewag Subcontract Forecast 40 15 15 40 2 35 40 28 15 15 20 15 22 65 60 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit 20 units $100 $150 $200 Carrying cost per unit per month 84arrow_forwardassume that the initial inventory has no holding cost in the first period, and back orders are not permitted. Allocating production capacity to meet demand at a minimum cost using the transportation method. The total cost is? (enter as whole number)arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
