OPERATIONS MANAGEMENT W/ 360 DAY CONNECT
OPERATIONS MANAGEMENT W/ 360 DAY CONNECT
2nd Edition
ISBN: 9781266763212
Author: CACHON
Publisher: MCG
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Chapter 19, Problem 2.1C

BUILDING A HOUSE IN THREE HOURS

Habitat for Humanity International is a nonprofit organization dedicated to eliminating poverty housing worldwide. The organization was founded in 1976 and since then has built hundreds of thousands of homes that are sold to those in need at no profit through no-interest loans. Houses built by Habitat for Humanity are decent and affordable.

How long does it take to build a house from scratch? Most residential construction projects take between three months and a full year. Habitat for Humanity can do this so much faster. In fact, they can do this much, much faster, as they demonstrated in the construction of Bonnie Lilly’s new home near Birmingham, Alabama. Bonnie, together with her two children, moved into a home that has officially been labeled the world’s fastest house by Habitat for Humanity International. The house has three bedrooms and two bathrooms. It was built—yes, you are reading correctly—in three hours and twenty-six minutes.

If you enter “fastest house ever built” into YouTube, you can watch a short movie that shows the construction. The construction was started using a previously installed foundation. It was completed when the entire house met all township codes and requirements.

Almost 200 carpenters, electricians, plumbers, roofers, and painters collaborated on this project. They followed a carefully laidout project plan. Each task was executed in the allotted time. Whenever a task was complete, the successor tasks were immediately started because workers were standing next to the construction site eagerly awaiting the authorization to start their work.

The project was planned and managed by project manager Chad Calhoun of Brice Construction Company. Chad and his team practiced for the build at an old schoolhouse. He coordinated the work, defined a project plan, and created a detailed schedule just as he does on his other construction projects.

How is it possible to build a house so quickly? Or, asked differently, why are other residential construction projects taking 100 times longer?

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Question content area Part 1 Oakwood 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 nearest whole​ number.)   Part 2 Rank the SKUs in descending order on the basis of their annual dollar usage and fill in the table with the ranked​ SKU's percentage of dollar usage. ​(Enter your responses rounded to two decimal​ places.)
Sam's Pet Hotel operates 51 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 70 bags/week > Order cost $58.00/order > Annual holding cost 30 percent of cost > Desired cycle-service level = 80 percent >Lead time 4 weeks (24 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 70 bags is incorrect and actual demand averages only 45 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.)
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