Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 2CS
Summary Introduction
Case summary:
Company D is a plumbing, heating and air-conditioning company. The company has a simple but powerful strategy. The main goal of the company is their customer satisfaction. The firm offers 24 hours service for 7 days a week with no extra charges.
Company D guarantees price for their work and offers guarantee for all parts for a year. The company does not charge for travel. The company highly concentrates on customer satisfaction rather than wealth creation.
The company does selective hiring, training and education, performance and compensation to concentrate on customer satisfaction. The company charges premium price but has high customer response due to the promised value. The revenue has increased from $200,000 to $3.3 million.
To determine: How should the areas of company D support its product strategy.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Do you think there are situations where a company might reduce a bottleneck anyway, even if demand is currently low, just to prepare for future growth or improve employee morale?
1) Scheduling at Washburn Guitar
View the video Scheduling at Washburn Guitar (10.40 minutes, Ctrl+Click on the link); what are your key takeaways (tie to one or more of the topics discussed in Chapters 11 and/or 16) after watching this video.
Note: As a rough guideline, please try to keep the written submission to one or two paragraphs.
2) Bosa Limited, a specialist confectionary manufacturer, makes a variety of confectionary products candies in its manufacturing facility at Ulaanbaatar. Its line of confectionary products exhibits a highly seasonal demand pattern. The firm’s costs and quarterly sales forecasts are as follows: Costs: Hiring cost = $200 per worker, Firing cost = $600 per worker, Inventory carrying cost = $0.60 per pound per worker, Production per employee = 1000 pounds per quarter, Beginning workforce = 125 workers.
Quarter
Sales Forecast/
Demand(pounds)
Production
Spring
80,000
95,000
Summer
50,000
95,000
Fall
100,000
95,000…
Note: In chapter 11, section 11.3 of the Stevenson text, level and chase plans are covered with examples (example 1, and example 2); chapter 11 Stevenson lecture power point slides 23 to 32 cover chase and level plans with an example; see lecture video, 12.21 mins to 26.55 mins.
3)
a) Huurhun Printing in Ulaanbaatar has four typesetters and four jobs to be completed as given in the table. The $ entries represent the firm’s estimate of what it will cost for each job to be completed by each typesetter. Find the optimal assignment of jobs to typesetters so as to minimize the total costs.
Typesetters
Jobs
A
B
C
D
42HG
$7
$3
$4
$8
19DT
$5
$4
$6
$5
47ST
$6
$7
$9
$6
17VT
$8
$6
$7
$4
b) Huurhun Printing in Ulaanbaatar has the following printing jobs waiting to be processed at its work center. The jobs are assigned sequentially upon arrival. All dates are specified as days from today. In what sequence should the…
Chapter 5 Solutions
Principles Of Operations Management
Ch. 5.S - Prob. 1DQCh. 5.S - Prob. 2DQCh. 5.S - Prob. 3DQCh. 5.S - Prob. 4DQCh. 5.S - Prob. 5DQCh. 5.S - Prob. 6DQCh. 5.S - Prob. 7DQCh. 5.S - Prob. 1PCh. 5.S - Prob. 2PCh. 5.S - Prob. 3P
Ch. 5.S - Prob. 4PCh. 5.S - Prob. 5PCh. 5.S - Prob. 6PCh. 5.S - Prob. 7PCh. 5.S - Prob. 8PCh. 5.S - Prob. 9PCh. 5.S - Prob. 10PCh. 5.S - A Southern Georgia school district is considering...Ch. 5.S - Prob. 12PCh. 5.S - Prob. 13PCh. 5.S - Prob. 14PCh. 5.S - Prob. 15PCh. 5.S - Prob. 16PCh. 5.S - Prob. 17PCh. 5.S - Prob. 18PCh. 5.S - Prob. 19PCh. 5.S - Prob. 1.1VCCh. 5.S - Prob. 1.2VCCh. 5.S - Prob. 1.3VCCh. 5.S - Prob. 2.1VCCh. 5.S - Prob. 2.2VCCh. 5.S - Prob. 2.3VCCh. 5.S - Prob. 3.1VCCh. 5.S - Prob. 3.2VCCh. 5.S - Prob. 3.3VCCh. 5.S - Prob. 3.4VCCh. 5 - Prob. 1EDCh. 5 - Prob. 1DQCh. 5 - What techniques do we use to define a product? ...Ch. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Describe four organizational approaches to product...Ch. 5 - Explain what is meant by robust design.Ch. 5 - Prob. 9DQCh. 5 - What information is contained in a bill of...Ch. 5 - What information is contained in an engineering...Ch. 5 - What information is contained in an assembly...Ch. 5 - Prob. 13DQCh. 5 - Explain how the house of quality translates...Ch. 5 - Prob. 15DQCh. 5 - Prob. 16DQCh. 5 - Why are the direct interaction and surrogate...Ch. 5 - Prob. 18DQCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Construct a house of quality matrix for a...Ch. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prepare a bill of material for (a) a pair of...Ch. 5 - Prob. 10PCh. 5 - Prepare a script for telephone callers at the...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Prob. 19PCh. 5 - Residents of Mill River have fond memories of ice...Ch. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 1CSCh. 5 - Prob. 2CSCh. 5 - Prob. 3CSCh. 5 - Prob. 1VCCh. 5 - Prob. 2VCCh. 5 - Prob. 3VCCh. 5 - Prob. 4VC
Knowledge Booster
Similar questions
- Competitive Landscape In the rapidly evolving tech industry, Apple faces competition from major players like Microsoft, Amazon, Google, and Samsung. How does Apple differentiate itself from these competitors in terms of innovation, marketing positioning, and customer loyalty?arrow_forward3. Consider a process consisting of three resources. Assume there exists unlimited demand for the product. a. Resource 1 has a processing time of 6 minutes per unit. b. Resource 2 has a processing time of 3 minutes per unit. c. Resource 3 has a processing time of 5 minutes per unit. All three resources are staffed by one worker. a. Draw a process flow diagram of this process. b. What is the capacity of resource 2? c. What is the bottleneck in the process? d. What is the utilization of resource 2? e. How long does it take the process to produce 200 units starting with an empty system, assuming this is a worker-paced process?arrow_forwardYou may need to use the appropriate technology to answer this question. Wood Watercolors is a commercial art gallery that uses a four-week periodic review system to reorder paintings for its showrooms. A one-week lead time is required to fill the order. Demand for one particular style of painting during the five-week replenishment period is normally distributed with a mean of 26 units and a standard deviation of 10 units. (a) At a particular periodic review, 16 units are in inventory. The curator places an order for 20 units. What is the probability that this style of painting will have a stock-out before an order that is placed at the next four-week review period arrives? (Round your answer to four decimal places.) (b) Assume that the gallery is willing to tolerate a 2.5% chance of a stock-out associated with a replenishment decision. How many paintings should the curator have ordered in part (a)? (Round your answer to the nearest integer.) paintings What is the replenishment level…arrow_forward
- You may need to use the appropriate technology to answer this question. A daily newspaper is stocked by a coffee shop so its patrons can purchase and read it while they drink coffee. The newspaper costs $1.16 per unit and sells for $1.55 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with μ = 150 and σ = 30. (a) What is your recommended daily order quantity for the coffee shop? (Round your answer to the nearest integer.) (b) What is the probability that the coffee shop will sell all the units it orders? (Round your answer to four decimal places.) (c) In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate? Find the recommended order quantity at 25¢ per unit. (Round your answer to the nearest integer.) What happens to the coffee shop's order quantity as the rebate is reduced? The higher rebate…arrow_forwardwhat would the reccomended course of action be in the Cervus Equipment Corp., Harvestinga Future case? including a Justification and Integration of recommendations and dentification + use of suitable decision criteriato rank options▪ Development of practical options in relation toidentified issue(s) + prior analysis▪ Qualitative + financial evaluation andcomparison of optionsarrow_forwardwhat would the reccomended course of action be in the Cervus Equipment Corp., Harvestinga Future case?arrow_forward
- Maria Gutierrez bought a computer system for $1350. She made a down payment of $ 135 and arranged to make 29 monthly payments of $48.88. After making 20 payments she decided to pay the loan in full. Use the Rule of 78 to determine the unearned interest and the amount necessary to pay the loan in full. The unearned interest is $ (Round to the nearest cent.) Part 2 The amount required to pay the loan in full is $ (Round to the nearest cent.)arrow_forward2. A community health system’s nurse team consists of 12 nurses working in the local community. It takes a nurse 1.5 hours to complete one patient visit (including travel time and breaks). a. What is the capacity of the nurse team over the course of a 9-hour workday? b. Assuming the demand for the nurses is 60 patients per day, what is the utilization of the nurse team? c. Assuming the demand for the nurses is 60 patients per day, what is the cycle time?arrow_forwardLO3-2, 3-4, 3-5 6. Consider the following production process for manufacturing biscuits. The first step of the process is mixing, where all of the ingredients are combined in the correct proportion to form dough. In the next step of the process, the dough is formed into sheets and cut into pieces in preparation for baking. The cut dough is then baked into biscuits and subsequently must be cooled. The final step of the process is packaging the biscuits for the consumer. The following table summarizes the production process along with the processing times at each step of the process. The process is highly automated, so assume that this is a machine-paced process with one machine available at each step. Process Step Mixing Activity Time (Minutes per Batch) Forming Baking Cooling Packing 15 10 12 18 10 a. What is the capacity of the baking process step (in batches per hour)? b. What is the bottleneck of the manufacturing process? c. Assuming unlimited demand, what is the process flow rate…arrow_forward
- LO3-1, 3-2, 3-4, 3-5 3. Consider a process consisting of three resources. Assume there exists unlimited demand for the product. a. Resource 1 has a processing time of 6 minutes per unit. b. Resource 2 has a processing time of 3 minutes per unit. c. Resource 3 has a processing time of 5 minutes per unit. All three resources are staffed by one worker. a. Draw a process flow diagram of this process. b. What is the capacity of resource 2? c. What is the bottleneck in the process? d. What is the utilization of resource 2? e. How long does it take the process to produce 200 units starting with an empty system, assuming this is a worker-paced process?arrow_forward1. It takes a barber 15 minutes to serve one customer. a. What is the capacity of the barber expressed in customers per hour? b. Assuming the demand for the barber is two customers per hour, what is the flow rate? c. Assuming the demand for the barber is two customers per hour, what is the utilization? d. Assuming the demand for the barber is two customers per hour, what is the cycle time?arrow_forward12 points) Jonathon's Restaurant is looking to open a new location. Caitlin Elizabeth has been developing a project plan and has identified tasks, precedence relations, and normal task durations shown in the table below: Assuming an indirect and overhead cost rate of 115, find the makespan and cost for a standard Early Start schedule: Makespan: Cost: Because Caitlin has studied project management at the University of Portland, she knows that a wise project manager should consider the trade-off between indirect/overhead costs and direct resource costs when establishing the "baseline" schedule. Assuming indirect/overhead costs of $115 per period and the direct compression costs and compression limits shown in the table above, find the following: Makespan: Cost: Compression strategy (enter answer as a vector: begin with "<", comma separated values, end with ">", e.g. < 0, 0, 5, ..., 2, 0>): Evidently this project is a very high priority project for Caitlin's boss.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,MarketingMarketingISBN:9780357033791Author:Pride, William MPublisher:South Western Educational Publishing
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning