EBK PRODUCTION AND OPERATIONS ANALYSIS
EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 9781478628385
Author: Olsen
Publisher: WAVELAND PRESS (ECONTENT)
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Chapter 7.2, Problem 8P

a)

Summary Introduction

Interpretation: capacity of each resource

Concept introduction:key to determining the performance of any system is the capacity of the relevant resources. This is defined as the number of customers per hour that may be processed by the resource.

b)

Summary Introduction

Interpretation: resource of the bottle neck and capacity of the system.

Concept introduction:key to determining the performance of any system is the capacity of the relevant resources. This is defined as the number of customers per hour that may be processed by the resource.

c)

Summary Introduction

Interpretation: actions to increase the system capacity.

Concept introduction:key to determining the performance of any system is the capacity of the relevant resources. This is defined as the number of customers per hour that may be processed by the resource.

d)

Summary Introduction

Interpretation:utilizations of receptionist, nurses and GPs.

Concept introduction:key to determining the performance of any system is the capacity of the relevant resources. This is defined as the number of customers per hour that may be processed by the resource.

e)

Summary Introduction

Interpretation:new capacity and utilization of receptionist.

Concept introduction:key to determining the performance of any system is the capacity of the relevant resources. This is defined as the number of customers per hour that may be processed by the resource.

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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 $11.00 per bag. The following information is available about these bags: > Demand 95 bags/week > Order cost $52.00/order > Annual holding cost = 25 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 95 bags is incorrect and actual demand averages only 75 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.)
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 $10.50 per bag. The following information is available about these bags: > Demand = 95 bags/week > Order cost = $55.00/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 95 bags is incorrect and actual demand averages only 75 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $ 10.64 higher owing to the error in EOQ. (Enter your response rounded to two decimal places.) b. Suppose that actual demand is 75 bags but that ordering costs are cut to only $13.00 by using the internet to automate order placing. However, the buyer does…
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