OPERATIONS MANAGEMENT (LL W/ CONNECT)
14th Edition
ISBN: 9781266539787
Author: Stevenson
Publisher: MCG
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Chapter 7.S, Problem 2CQ
Summary Introduction
To prepare: A list of observations regarding the information provided in this case.
Introduction:
An automobile manufacturer is making a product recall due to a defect in the steering mechanism, which would make the automobile to go out of control. The company pays a fair amount to its dealers. After discussion, the engineers came to a conclusion to fix the defect for $88 per repair at an hourly rate of $22 and their learning rate is 90%.
The company received complaints from its dealers related to the rate fixed by the engineers. The dealers claimed that their employees suggested a rate of $110 per repair. Each of the three mechanics completed two repairs. Average time taken for repairing the first unit was 9.6 hours and average time for the second unit was 7.2 hours.
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2a. Complete the following Make or Buy Analysis.
Make or Buy Analysis
Food Cost
Processed chopped lettuce
• $23.80/case of 4, 5 lb. bags
• Price/lb
Whole head lettuce
$16.49/50 lb case
• Price/lb AP
• 75% yield on whole head lettuce
• Price/lb EP
Labor Cost
Processed chopped lettuce
⚫ No labor cost
Whole head lettuce
• Cooks are paid $10.85/hr with 20% benefits
• It takes 2 hours to process 50 lbs. of lettuce
• Benefits
• Cook labor cost with benefits
• Total labor cost for 1 lb. lettuce
analysis needs to address the following issues:
The battery temperatures are a major concern for us. Can you analyze and describe the sample data? What are the average and median temperatures? How much variability is there in the temperatures? Is there anything that stands out?
Our engineers’ assumption is that the temperature data is normally distributed. If that is the case, what would be the likelihood that the Safety Zone temperature will exceed 5.15 degrees? What is the probability that the Safety Zone temperature will be less than 4.65 degrees?
What is the actual percentage of samples that exceed 5.25 degrees or are less than 4.75 degrees?
Is the manufacturing process producing units with stable Safety Zone temperatures? Can you check if there are any apparent changes in the temperature pattern? Are there any outliers? A closer look at the Z-scores should help you in this regard.
Factor Factor Description
Weight
Present Location Newbury
Hyde Park
1
Average community income
0.35
2
Community growth potential
0.15
3
Availability of public transportation
0.20
4
Labor availability, attitude, and cost
0.30
3 2 3 2
35
20
25
75
33 28
55
55
25
75
65
50
50
55
Chapter 7 Solutions
OPERATIONS MANAGEMENT (LL W/ CONNECT)
Ch. 7.S - Prob. 1DRQCh. 7.S - Prob. 2DRQCh. 7.S - Prob. 3DRQCh. 7.S - Prob. 4DRQCh. 7.S - Prob. 5DRQCh. 7.S - Prob. 6DRQCh. 7.S - Prob. 7DRQCh. 7.S - Prob. 8DRQCh. 7.S - Prob. 9DRQCh. 7.S - Prob. 10DRQ
Ch. 7.S - Prob. 1PCh. 7.S - Prob. 2PCh. 7.S - Prob. 3PCh. 7.S - Prob. 4PCh. 7.S - Prob. 5PCh. 7.S - Prob. 6PCh. 7.S - Prob. 7PCh. 7.S - Prob. 8PCh. 7.S - Prob. 9PCh. 7.S - Prob. 10PCh. 7.S - Prob. 11PCh. 7.S - Prob. 12PCh. 7.S - Prob. 13PCh. 7.S - Prob. 14PCh. 7.S - Prob. 15PCh. 7.S - Prob. 16PCh. 7.S - Prob. 17PCh. 7.S - Prob. 18PCh. 7.S - Prob. 19PCh. 7.S - Prob. 1CQCh. 7.S - Prob. 2CQCh. 7.S - Prob. 3CQCh. 7 - Prob. 1DRQCh. 7 - What are some of the main advantage and...Ch. 7 - Prob. 3DRQCh. 7 - Prob. 4DRQCh. 7 - Prob. 5DRQCh. 7 - Prob. 6DRQCh. 7 - Prob. 7DRQCh. 7 - What are motion study principles? How are they...Ch. 7 - Prob. 9DRQCh. 7 - Prob. 10DRQCh. 7 - Prob. 11DRQCh. 7 - Prob. 12DRQCh. 7 - Prob. 13DRQCh. 7 - Prob. 14DRQCh. 7 - Prob. 15DRQCh. 7 - Prob. 16DRQCh. 7 - Prob. 17DRQCh. 7 - Prob. 18DRQCh. 7 - Prob. 19DRQCh. 7 - Prob. 1TSCh. 7 - Prob. 2TSCh. 7 - Prob. 3TSCh. 7 - Prob. 1CTECh. 7 - Prob. 2CTECh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Given these observed times (in minutes) for four...Ch. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10PCh. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - An analyst made the following observations about...Ch. 7 - Prob. 15PCh. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Prob. 19P
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