EBK PRINCIPLES OF OPERATIONS MANAGEMENT
10th Edition
ISBN: 8220102744059
Author: HEIZER
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 6.S, Problem 45P
Summary Introduction
To determine: The process capability index.
Introduction: Process capability is the ability or capability of the process to produce the output, which meets the specification and expectation.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
In addition to the Amazon case study you provided, I'm curious if you've encountered other examples of companies successfully applying Little's Law to enhance their supply chain risk management practices. For instance, have you seen organizations use queuing theory to assess the potential ripple effects of disruptions, stress-test their contingency plans, or identify critical control points that require heightened monitoring and agility?
Please provide a reference
Sam's Pet Hotel operates 48 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
85 bags/week
>Order cost $60.00/order
> Annual holding cost = 35 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 85 bags is incorrect and actual demand averages only 65 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.)
Osprey 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
$3030/order;
the demand averages
55
lures per day, with a standard deviation of
11
lure; and the inventory holding cost is
$1.001.00/lure/year.
The lead time form the supplier is
1010
days, with a standard deviation of
33
days. It is important to maintain a
9898
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
LOADING...
for z-values.
Part 2
a. What order quantity should be used?
enter your response here
lures. (Enter your response rounded to the…
Chapter 6 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
Ch. 6.S - Prob. 1DQCh. 6.S - Define in statistical control.Ch. 6.S - Prob. 3DQCh. 6.S - Prob. 4DQCh. 6.S - Prob. 5DQCh. 6.S - Prob. 6DQCh. 6.S - Prob. 7DQCh. 6.S - Prob. 8DQCh. 6.S - Prob. 9DQCh. 6.S - Prob. 10DQ
Ch. 6.S - Prob. 11DQCh. 6.S - Prob. 12DQCh. 6.S - Prob. 13DQCh. 6.S - Prob. 14DQCh. 6.S - Prob. 15DQCh. 6.S - Prob. 16DQCh. 6.S - Prob. 17DQCh. 6.S - Prob. 18DQCh. 6.S - Prob. 19DQCh. 6.S - Prob. 1PCh. 6.S - Prob. 2PCh. 6.S - Prob. 3PCh. 6.S - Prob. 4PCh. 6.S - Prob. 5PCh. 6.S - Prob. 6PCh. 6.S - Prob. 7PCh. 6.S - Prob. 8PCh. 6.S - Prob. 9PCh. 6.S - Prob. 10PCh. 6.S - Prob. 11PCh. 6.S - Prob. 12PCh. 6.S - Prob. 13PCh. 6.S - Prob. 14PCh. 6.S - Prob. 15PCh. 6.S - Prob. 16PCh. 6.S - Prob. 17PCh. 6.S - Prob. 18PCh. 6.S - Prob. 19PCh. 6.S - Prob. 20PCh. 6.S - Prob. 21PCh. 6.S - Prob. 22PCh. 6.S - Prob. 23PCh. 6.S - Prob. 24PCh. 6.S - Prob. 25PCh. 6.S - Prob. 26PCh. 6.S - Prob. 27PCh. 6.S - Prob. 40PCh. 6.S - Prob. 41PCh. 6.S - Prob. 42PCh. 6.S - Prob. 43PCh. 6.S - Prob. 44PCh. 6.S - Prob. 45PCh. 6.S - Prob. 51PCh. 6.S - Prob. 52PCh. 6.S - Prob. 53PCh. 6.S - Prob. 54PCh. 6.S - Prob. 55PCh. 6.S - Prob. 1CSCh. 6.S - Prob. 2CSCh. 6.S - Prob. 1.1VCCh. 6.S - Prob. 1.2VCCh. 6.S - Prob. 1.3VCCh. 6.S - Prob. 2.1VCCh. 6.S - Select two potential problems-one in the Darden...Ch. 6.S - Prob. 2.3VCCh. 6.S - Prob. 2.4VCCh. 6 - Prob. 1EDCh. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQCh. 6 - Prob. 11DQCh. 6 - Prob. 12DQCh. 6 - Prob. 13DQCh. 6 - Prob. 14DQCh. 6 - Prob. 15DQCh. 6 - Prob. 16DQCh. 6 - Prob. 17DQCh. 6 - Prob. 18DQCh. 6 - An avant-garde clothing manufacturer runs a series...Ch. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Kathleen McFaddens restaurant in Boston has...Ch. 6 - Prob. 6PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Prob. 9PCh. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Prob. 17PCh. 6 - Prob. 1CSCh. 6 - Prob. 2CSCh. 6 - Prob. 3CSCh. 6 - Prob. 1.1VCCh. 6 - Prob. 1.2VCCh. 6 - Prob. 1.3VCCh. 6 - Prob. 1.4VCCh. 6 - Prob. 2.1VCCh. 6 - Prob. 2.2VCCh. 6 - Prob. 2.3VCCh. 6 - Prob. 2.4VCCh. 6 - Prob. 3.1VCCh. 6 - Prob. 3.2VCCh. 6 - Prob. 3.3VCCh. 6 - Prob. 3.4VCCh. 6 - Prob. 3.5VC
Knowledge Booster
Learn more about
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
- 9. Research Methodology Fully explain the Quantitative research methodology that and add in the following sub-sections: . Data Collection • Data Analysisarrow_forwardRuby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 40 units and is valued at $80 per unit. Inbound shipments from vendor 1 will average 340 units with an average lead time (including ordering delays and transit time) of 2 weeks. Inbound shipments from vendor 2 will average 550 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a 2-week supply of inventory as safety stock and no anticipation inventory. a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $ (Enter your response as a whole number.)arrow_forwardThe Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year. The miles driven during the past 5 years are as follows: Year Mileage 1 3,000 2 3 4 4,000 3,450 3,850 5 3,800 a) Using a 2-year moving average, the forecast for year 6 = miles (round your response to the nearest whole number). b) If a 2-year moving average is used to make the forecast, the MAD based on this = miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.) c) The forecast for year 6 using a weighted 2-year moving average with weights of 0.40 and 0.60 (the weight of 0.60 is for the most recent period) = ☐ miles (round your response to the nearest whole number). miles (round your response to one decimal place). (Hint: You will have only 3 years of The MAD for the forecast developed using a weighted 2-year moving average with weights of 0.40 and 0.60 = matched data.) d) Using…arrow_forward
- Task time estimates for the modification of an assembly line at Jim Goodale's Carbondale, Illinois, factory are as follows: B D G Time Activity (in hours) Immediate Predecessor(s) A 5.0 B 7.5 C 5.0 A DEFC 8.0 B, C 4.5 Figure 2 A B, C 7.7 D G 5.0 E, F This exercise contains only part a. a) The correct precedence diagram for the project is shown in 目 F B Figure 3 A E B E ☑ D Farrow_forwardDave Fletcher was able to determine the activity times for constructing his laser scanning machine. Fletcher would like to determine ES, EF, LS, LF, and slack for each activity. The total project completion time and the critical path should also be determined. Here are the activity times: Activity Time (weeks) Immediate Predecessor(s) Activity Time (weeks) Immediate Predecessor(s) A 6 E 3 B B 8 F 6 B C 3 A G 11 C, E D 1 A H 7 D, F Dave's earliest start (ES) and earliest finish (EF) are: Activity ES .EF A 0 6 B 0 8 C 3 9 D 6 E F 8 G 22 H 21 Dave's latest start (LS) and latest finish (LF) are: Activity LS LF H 15 G 11 F 9arrow_forwardThere are multiple ways a company can enter a foreign market. Explore two possibilities such as exporting, foreign direct investment, and collaborations (joint ventures, alliances, licensing, franchising), and evaluate the pros and cons of each method. Which types of products and services would be appropriate for each market entry method?arrow_forward
- 01,3 ☐ Question 3 Scenario 9.3 4 pts The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost/high volume assemblies, the XO-01, has an estimated annual demand of 8,000 units. Talbot estimates the cost to place an order is $50, and the holding cost for each assembly is $20 per year. The company operates 250 days per year. Use the information in Scenario 9.3. What is the annual inventory holding cost if Talbot orders using the EOQ quantity? O less than or equal to $1,500 Ogreater than $4,000 but less than or equal to $6,500 O greater than $6,500 O greater than $1,500 but less than or equal to $4,000 Nextarrow_forwardAnalyze Walmart Inc. operations and conducting a strengths, weaknesses, opportunities, and threats (SWOT) analysis. Pay attention to Walmart Inc. strengths and opportunities to come up with a social cause that meshes well with them. Focusing on areas where Walmart Inc. excels and then finding a social cause that can benefit from Walmart Inc. strengths can also ultimately help Consider how shareholder and stakeholder theories of ethics will impact the selection of a target social cause for Walmart Inc to pursue. What responsibility does Walmart Inc. owe to its stockholders and stakeholders? Will pursuing a social responsibility program detract from the responsibilities to these two groups? Any program that is implement will redirect resources toward the social cause and away from the stockholders and stakeholders. Is it ethical? Walmart Inc SWOT analysis. Justify each item of the analysis. Evaluate the ethical implications of pursuing a social responsibility program in terms of the…arrow_forwardDetail Instructions Consider the following activities, activity times and precedence relations for a hypothetical Athletic Club Building project. Activity Activity Description Normal Time (weeks) Immediate Predecessors A Form project team 9 B Prepare renovation plans 12 A C Demolish interior space 10 B D Upgrade utility systems 20 A E Select equipment, furniture & 10 B fixtures F Hire Staff 10 A G Renovate building 30 B,C H Purchase equipment, furniture & 26 E fixtures Install equipment, furniture & 4 D.G.H fixtures 3 FI J Train staffarrow_forward
- How do you think smaller companies, with less sophisticated systems compared to giants like Amazon, can apply Little's Law to optimize their operations? Please Provide a referencearrow_forwardWhat are your thoughts on how businesses can account for real-world variability when applying Little's Law, especially in industries where demand is highly unpredictable? Please provide referencearrow_forwardHow can businesses integrate Petri Net modeling with Little's Law to enhance supply chain resilience, especially in unexpected disruptions such as supplier delays or demand fluctuations? Please provide a refernencearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Foundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...MarketingISBN:9781285193946Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning