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Concept explainers
a)
Interpretation: the probability of no customers in two mins.
Concept introduction:Poisson arrivals are a reasonably good assumption for unscheduled systems. Further if there is a mix of many different types of jobs the exponential distribution can be realistic for service times. Otherwise it tends to be too variable of a distribution.
b)
Interpretation: probability of exactly two customers in a minute.
Concept introduction:Poisson arrivals are a reasonably good assumption for unscheduled systems. Further if there is a mix of many different types of jobs the exponential distribution can be realistic for service times. Otherwise it tends to be too variable of a distribution
c)
Interpretation:probability of exactly five customers in threeminutes
Concept introduction:Poisson arrivals are a reasonably good assumption for unscheduled systems. Further if there is a mix of many different types of jobs the exponential distribution can be realistic for service times. Otherwise it tends to be too variable of a distribution
d)
Interpretation:probability of no more than two customers in fiveminutes
Concept introduction:Poisson arrivals are a reasonably good assumption for unscheduled systems. Further if there is a mix of many different types of jobs the exponential distribution can be realistic for service times. Otherwise it tends to be too variable of a distribution
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Chapter 7 Solutions
Production and Operations Analysis, Seventh Edition
- 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.)arrow_forwardSam'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.)arrow_forwarda. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $enter your response here. (Enter your response as a whole number.) b. The aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is shown below. c. How would your analysis change if average weekly demand increased to 160 units per week? The aggregate inventory values are shown below.arrow_forward
- a. What order quantity should be used? lures. (Enter your response rounded to the nearest whole number.) b. What reorder point should be used? (Enter your response rounded to the nearest whole number.) c. What is the total annual cost for this inventory system? (Enter your response rounded to two decimal places)arrow_forwardOakwood 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.) SKU Unit Value Demand (units) Annual Dollar Usage 1 $1.10 30,000 $ 2 $0.02 125,000 $ 3 $0.20 65,000 S 4 $0.02 1,100 SA 5 $1.40 150 SA 678 $4.10 900 $ $0.80 350 $ $0.55 80 EA $arrow_forwardDyson, a high-tech home appliance maker, has cut ties with Malaysian supplier ATA IMS Bhd following an audit of the company's labour practices and allegations by a whistleblower. ATA is already under US investigation over forced labour allegations. Dyson has terminated its contracts and is in talks with its customer over the audit findings. ATA, which produces parts for Dyson's vacuum cleaners and air purifiers, tumbled 30% to its lowest since April 2020. The termination is a significant blow for Malaysia, a major electronics manufacturing hub, which has faced scrutiny this year over claims of abusive working and living conditions. Dyson terminated the relationship with six months' contractual notice, hoping it would give ATA the impetus to improve and enable an orderly withdrawal in the interests of the workers they employ. Former ATA worker Dhan Kumar Limbu was beaten by police in Malaysia after sharing information about conditions at the factory with activists. ATA denied all…arrow_forward
- Question 4 (25 Marks) Discuss how developing internal performance measures to track the performance of supplier development, can create efficiency for Pick n Pay.arrow_forwardLeadership and people Earlier this year, Pick n Pay actioned the first priority of the plan: the introduction of a new, simplified and seasoned leadership team with proven track records. The team has already implemented strengthened structures, including establishing regional trading areas with local decision-making, with clear sight of strong long-term succession Each operating region now has a regional buying team and store management team in place to meet specific customer needs particular to that region, while also increasing staff training and productivity for an overall improved store experience. Reset the store estate To create a more sustainable supermarket business, the Group is resetting its store estate to minimise losses by creating a smaller but more profitable Pick n Pay store estate. The plan is to leverage the strength of its multi-format model with strategic conversions to lift store profitability: selected Pick n Pay stores will be converted to Boxer, where customer…arrow_forwardQuestion 3 (25 Marks) Elaborate on how Pick n Pay could use information technology and ERP systems across the company and their suppliers to improve their operating model? Question 4 (25 Marks)arrow_forward
- Question 2 (25 Marks) Discuss how you would "reset the store estate" to remain competitive and relevant in the market? Question 3 (25 Marks)arrow_forwardWhat should leaders do after conducting an employee survey? take immediate action on results take at least 6 months to review the results to make sure the leader understands them review them immediately, but do not take action right away keep results confidential from employeesarrow_forwardOne of the best ways to encourage teamwork is to: continually promote from outside of the department recognize employees who focus on their personal performance goals only reward employees who complete their own tasks and also assist with problems outside of their department discuss individual performance issues at staff meetingsarrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,MarketingMarketingISBN:9780357033791Author:Pride, William MPublisher:South Western Educational Publishing
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