Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 5DQ
Define work breakdown structure. How is it used?
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Ruby-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.
Sam'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.)
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.)
Chapter 3 Solutions
Operations Management
Ch. 3 - Give an example of a situation in which project...Ch. 3 - Explain the purpose of project organization.Ch. 3 - What are the three phases involved in the...Ch. 3 - What are some of the questions that can be...Ch. 3 - Define work breakdown structure. How is it used?Ch. 3 - What is the use of Gantt charts in project...Ch. 3 - What is the difference between an...Ch. 3 - What is the significance of the critical path?Ch. 3 - What would a project manager have to do to crash...Ch. 3 - Describe how expected activity times and variances...
Ch. 3 - Define earliest start, earliest Finish, latest...Ch. 3 - Students are sometimes confused by the concept of...Ch. 3 - What are dummy activities? Why are they used in...Ch. 3 - What are the three time estimates used with PERT?Ch. 3 - Would a project manager ever consider crashing a...Ch. 3 - How is the variance of the total project computed...Ch. 3 - Describe the meaning of slack, and discuss how it...Ch. 3 - How can we determine the probability that a...Ch. 3 - Name some of the widely used project management...Ch. 3 - The work breakdown structure (WBS) for building a...Ch. 3 - 3.2 Robert Day has decided to run for a seat as...Ch. 3 - Draw the activity-on-node (AON) project network...Ch. 3 - Given the activities whose sequence is described...Ch. 3 - 3.5 Using AOA, diagram the network described below...Ch. 3 - Stephen Hall is developing a program in supply...Ch. 3 - Task time estimates for the modification of an...Ch. 3 - 3.8 The City Commission of Nashville has decided...Ch. 3 - Refer to the table in Problem 3.8. a. Draw the AON...Ch. 3 - The activities needed to build a prototype laser...Ch. 3 - Dave Fletcher (see Problem 3.10) was able to...Ch. 3 - The activities described by the following table...Ch. 3 - A renovation of the gift shop at Orlando Amway...Ch. 3 - Kelle Carpet and Trim installs carpet in...Ch. 3 - The following is a table of activities associated...Ch. 3 - Assume that the activities in Problem 3.15 have...Ch. 3 - Bill Fennema, president of Fennema Hospitality,...Ch. 3 - What is the minimum cost of crashing the following...Ch. 3 - Three activities are candidates for crashing on a...Ch. 3 - Development of Version 2.0 of a particular...Ch. 3 - The estimated times and immediate predecessors for...Ch. 3 - Rich Cole Control Devices, Inc., produces...Ch. 3 - Four Squares Productions, a firm hired to...Ch. 3 - Using PERT, Adam Munson was able to determine that...Ch. 3 - Clark Products makes pizza ovens for commercial...Ch. 3 - The Tesla 6 is a new custom-designed sports car....Ch. 3 - TABLE 3.6 Southwestern University Project 1....Ch. 3 - TABLE 3.6 Southwestern University Project 2 What...Ch. 3 - TABLE 3.6 Southwestern University Project 3. If it...Ch. 3 - Project Management at Arnold Palmer Hospital Video...Ch. 3 - The equivalent of a new kindergarten class is born...Ch. 3 - The equivalent of a new kindergarten class is born...Ch. 3 - The equivalent of a new kindergarten class is born...Ch. 3 - At the Hard Rock Cafe, like many organizations,...Ch. 3 - At the Hard Rock Cafe, like many organizations,...Ch. 3 - At the Hard Rock Cafe, like many organizations,...Ch. 3 - At the Hard Rock Cafe, like many organizations,...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Please 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_forwardIn 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_forward
- 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 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_forwardassume 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_forward
- Regular 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_forwardThe S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiring additional workers is $35 per unit produced. The cost of layoffs is $60 per unit cut back. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1300 in August requires a layoff (and related costs) of 0 units in August). Hire Month 1 July Demand 1300 Production (Units) Layoff (Units) Ending Inventory Stockouts (Units) 2 August 1150 3 September 1100 4 October 1600 5 November 1900 6 December 1900arrow_forward
- The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $20 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontract additional units at a $65 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Ending Month Demand Production Inventory Subcontract (Units) 1 July 1300 1,100 0 2 August 1150 1,100 0 3 September 1100 1,100 0 4 October 1600 1,100 0 5 November 1900 1,100 0 6 December 1200 1,100 0arrow_forwardPlease help me expand upon my research even more in detail please. Need help added more to mine from the photos please. Not sure what more I can add.arrow_forwardHow can HR proactively help ensure that other departments are operating in a legally acceptable manner? Answers Deliver interdepartmental training on legal compliance and requirements. Discuss potential sources of risk with an attorney and create a plan to respond to lawsuits. Ensure that all HR members are watching the conduct of other departments and report infractions to the head of HR. Record improper conduct from various employees throughout the organization and pursue disciplinary measures.arrow_forward
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