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Concept explainers
Henry Coupe, the manager of a metropolitan branch office of the state department of motor vehicles, attempted to analyze the driver’s license-renewal operations. He had to perform several steps. After examining the license-renewal process, he identified those steps and associated limes required to perform each step, as shown in the following table:
State Automobile License Renewal Process Times
Coupe found that each step was assigned to a different person. Each application was a separate process in the sequence shown. He determined that his office should be prepared to accommodate a maximum demand of processing 120 renewal applicants per hour.
He observed that work was unevenly divided among clerks and that the clerk responsible for checking violations tended to shortcut her task to keep up with the others. Long lines built up during the maximum-demand periods.
Coupe also found that Steps 1 to 4 were handled by general clerks who were each paid $12 per hour. Step 5 was performed by a photographer paid $16 per hour. (Branch offices were charged $10 per hour for each camera to perform photography.)
Step 6, issuing temporary licenses, was required by state policy to be handled by uniformed motor vehicle officers. Officers were paid $18 per hour but could be assigned to any job except photography.
A review of the jobs indicated that Step 1, reviewing applications for correctness, had to be performed before any other step could be taken. Similarly, Step 6, issuing temporary licenses, could not be performed until all the other steps were completed.
Henry Coupe was under severe pressure to increase productivity and reduce costs, but he was also told by the regional director that he must accommodate the demand for renewals. Otherwise, “heads would roll.”
3. If the second clerk could be added anywhere you choose (and not necessarily to check for violations, as in Question 2), what is the maximum number of applications the process can handle? What is the new configuration?
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Chapter 9 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
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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 $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_forwarda. 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_forward
- 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.) 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_forwardQuestion 4 (25 Marks) Discuss how developing internal performance measures to track the performance of supplier development, can create efficiency for Pick n Pay.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
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