A group of music lovers in a large urban area incorporate a company, Mozart Holdings Ltd., in order to purchase land and build a music hall that they claim will be “a glittering jewel in the cultural crown” of the city. The corporation selects an architectural firm that will design the building, a construction company that will construct the music hall, and chooses other suppliers who will provide goods and services necessary to the planning and development of a unique structure. One of the contracts that Mozart enters into is with an artist, Paige Presley, who is commissioned to produce an artistic work for the main lobby of the music hall. Presley is to be paid the sum of $50 000 for the work, and Mozart stipulates that the work is to be in any medium, but it must be permanently affixed to the north wall of the lobby, and must be of a size no less than 10 metres by 15 metres. The artist and the corporation enter into a written contract whereby the artist agrees to create the artistic work, warrants that it is her original work, and transfers the work to Mozart Holdings Ltd., in consideration of payment of the agreed‐upon contract price. No mention is made of moral rights. Presley designs and creates an artistic work that is an abstracted representation of musicians, musical instruments and musical notes on a scale. The work is created out of a series of more than two hundred 30 cm by 30 cm ceramic tiles that are made by the artist by hand and fired in her kiln in her studio. The artist and two assistants install the work on the north wall of the lobby, in time for the official opening of the music hall. The work is titled “The Song of Ages.” Presley attends the official opening for the music hall, at which many dignitaries are present. Media representatives are present, and photographers take pictures of the lobby, the people present, and Presley’s artistic work. At a table in the lobby, Presley notices a brochure that solicits funds from donors, asking them to contribute to the operation of the music hall. Donors are promised various “gifts” for donations at different levels of giving, ranging from music CDs for donations of $50 to $100, up to the “benefactor” level. Those who make a donation at the benefactor level will have their name inscribed in one of the tiles that form the work “The Song of Ages.” Question (8): Presley is incensed and embarrassed that her art would be defaced in this fashion. She considers commencing a court action, seeking an injunction. Evaluate the situation and advise what chances of success she has and on what grounds?
In: Operations Management
Question 1: The Cost-Less Corp. supplies its four retail outlets from its three plants. The shipping cost per shipment from each plant to each retail outlet is given below.
R1 |
R2 |
R3 |
R4 |
|
P1 |
30 |
10 |
25 |
20 |
P2 |
15 |
25 |
30 |
10 |
P3 |
20 |
30 |
15 |
20 |
Part a) Formulate this problem as an assignment problem and solve it to find the best strategy for assigning production plants to retail outlets. (No need to show your steps, only list all possible assignments and minimum assignment cost)
Part b) Each plant can produce up to 150 products per month. Retail outlets 1, 2, and 3 need to receive 100, 120, 150, and 100 products per month. The company makes a revenue of 110 in for the manufacture of each unit of product. (Only show the table)
Part c) Use the minimum cost rule to construct an initial BF solution and calculate its transportation cost. (Show the final solution)
In: Operations Management
Myrtle Air Express decided to offer direct service from Cleveland to Myrtle Beach. Management must decide between a full-price service using the company’s new fleet of jet aircraft and a discount service using smaller capacity commuter planes. It is clear that the best choice depends on the market reaction to the service Myrtle Air offers. Management developed estimates of the contribution to profit for each type of service based upon two possible levels of demand for service to Myrtle Beach: strong and weak. The following table shows the estimated quarterly profits (in thousands of dollars):
Demand for Service | ||
Service | Strong | Weak |
Full price | $1440 | -$530 |
Discount | $1000 | $480 |
Optimistic approach | |
Conservative approach | |
Minimax regret approach |
In: Operations Management
The questions are at the bottom
It was 4:56 P.M. on the surgical floor of Collins Memorial Hospital. Nurse Rhoda Fleming, an efficient head nurse with 15 years of experience, was in charge of the floor that afternoon. As is the case in many hospitals, she had responsibility for several patients herself as well as assuming supervisory responsibilities over other floor nurses. Making a final room check of her own patients prior to the arrival of her 5:00 P.M. relief, in Room 406 she found that Mr. Henry Youstra, who had undergone surgery the week before and not done well, had died. She pulled the sheet over the face of the body and made a mental note to tell her relief to empty the room for a new patient, bed space being especially important at this time in the hospital.
After finishing her check she returned to the floor desk. The evening shift supervisor, Anne Simmons, had already arrived, and was waiting at the desk.
“Hi, Anne. 406 just died, so that room's all set to go again. Too bad. We can certainly use the space, though.”
“That's for sure. Has 411 had her shot yet? Dr. Alpers really climbed on me yesterday about it. You know how he is.”
“No, not yet. You'd better do that right away.”
“Does the office know that 406 is ready?”
“No, you'll need to call them after you get things taken care of.”
Nurse Supervisor Fleming then left, and Simmons gave 411 her shot and went about other duties, dropping in on her own patients, and chatting with nurses on the shift.
At 5:45 P.M. she called the office and told them that room 406 was ready for occupancy, though she had not checked the room herself. She was told that a patient would be moved from recovery and would ultimately occupy 406.
Visitors' hours began at 7:00 P.M. at the hospital. As she had been doing three times daily throughout the week, as the fourth floor elevator doors opened, Mrs. Henry Youstra walked out and went down the hall to visit her husband.
At 8:00 P.M., the end of visiting hours, Nurse Supervisor Simmons checked each of her assigned patient rooms to see that visitors had left. In room 406 she found Mrs. Youstra dead on the floor beside the bed containing her husband's body.
Case Questions
In: Operations Management
Sam's Cat Hotel operates 52 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=80 bags/week
Order cost=$55.00/order
Annual holding cost=40 percent of cost
Desired cycle-service level=80 percent
Lead time=5 weeks (30 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 80 bags is incorrect and actual demand averages only 55 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.)
b. Suppose that actual demand is 50 bags but that ordering costs are cut to only $13.00 by using the internet to automate order placing. However, the buyer does not tell anyone, and the EOQ is not adjusted to reflect this reduction in S. How much higher will total costs be, compared to what they could if the EOQ were adjusted?
The costs will be $____ higher owing to the error EOQ.
In: Operations Management
How does work measurement impact the ability for an operation to be competitive in the 21st century?
In: Operations Management
Identify a disruptive technology that has emerged during your life.
What was the technology?
In what ways did it affect people's lives positively? Negatively?
In what ways did it affect the OSCM?
In: Operations Management
Illustration Capsule 11.2 provides a sampling of motivational tactics employed by several prominent companies (many of which appear on Fortune's list of the 100 best companies to work for in America). Discuss how rewards at SAS, Salesforce.com, DPR Construction, and Hilcorp aid in the strategy execution efforts of each company.
In: Operations Management
Steel City Inc. is a company located in Dallas in the United States of America. It deals in import export of furniture. The workforce is composed of almost 200 employees, from different levels. In Steel City, Inc., the president Anna, 33 years old, realizes that this firm requires some reorganization.
The organization is using the top down management approach, it has many levels of management and it uses narrowly specialized job descriptions.
Anna wants to move into new international markets but she noticed that employees are demotivated and they are not happy in their positions knowing that Steel City, Inc is applying highly specialized jobs and employees already work independently and in complete autonomy.
Knowing that motivation is very crucial to the productivity of her employees, Anna wanted to work on this issue by increasing employees’ motivation. To do so, she decided to review and change some core characteristics of what they are doing and she was sure that this will certainly end up with beneficial work outcomes.
Anna also used the work flow analysis of Steel City, Inc to define how work in this organization creates value to the ongoing process of employees’ works. She thought that applying the Business Process Reengineering (BPR) might be very efficient to solve the problem of employees’ demotivation since employees have been complaining about their work. Jobs are repetitive and employees don't know how their work fits into the big organizational picture. The president wants to reduce operating costs, reorganize jobs by providing employees with satisfying work, independency and wanted them to be cross trained on different task assigned to the group.
Anna also thought about using a problem solving team to be able to generate solutions about how to decrease employees’ demotivation and increase their work involvement, devotion and commitment.
As she wants jobs to become more interesting and precisely to improve motivation, Anna included specialized task together so employees can expand their work horizontally and vertically. All of this should give employees more autonomy and the opportunity for feedback. Anna decided to compare the productivity of her employees six months after she made the needed adjustments in the company.
1. Based on the above case study, what is the used organizational structure by Steel City, Inc? Explain.
2. Which motivation theory the president's is using to minimize employees’ dissatisfaction?
3. When the job needs to be reorganized some job design modifications should also be implemented. What job design do you propose taking into consideration employees’ complains?
4. What type of team the president can use in order to reduce operating costs giving employees some autonomy in Steel City, Inc.?
In: Operations Management
Homer is a safety inspector at a unionized nuclear power plant. He was scheduled to go on a five-day vacation starting on Monday, April 22, and return to work on Monday, April 29. On the morning of his first day of vacation, Homer's sister-in-law died suddenly of undiagnosed lung cancer. Homer called his manager on Friday, April 26, and asked to have four (4) days of his vacation (April 23–26) reinstated and paid as bereavement leave “in accordance with Article 10.04.” The collective agreement reads as follows: Article 10.04: Vacation Reinstatement for Bereavement Leave An employee who is informed of the death of a relative prior to the start of his/her scheduled vacation may have up to three (3) vacation days reinstated and paid as bereavement leave. What would you tell Homer? Would you grant him his request? Why or why not? Make whatever assumptions you feel are necessary in order to defend your answer.
In: Operations Management
An electronic manufacturer must expand by building a second facility. The search is narrowed to four locations, all of which are acceptable to management in terms of dominant factors. Assessment of these sites in terms of seven location factors is shown in the table below.
Location factor |
Factor weight |
Location |
|||
A |
B |
C |
D |
||
Labour climate |
20 |
5 |
4 |
4 |
5 |
Quality of life |
16 |
2 |
3 |
4 |
1 |
Transportation system |
16 |
3 |
4 |
3 |
2 |
Proximity to markets |
14 |
5 |
3 |
4 |
4 |
Proximity to materials |
12 |
2 |
3 |
3 |
4 |
Taxes |
12 |
2 |
5 |
5 |
4 |
Utilities |
10 |
5 |
4 |
3 |
3 |
Calculate the factor rating score for each location and identify the best location.
In: Operations Management
Describe the role of the customer in strategic decision making. List the types of market segmentation found in marketing. You do not need to explain them. Just list them in point form. Any sources that are not yours must be cited.
In: Operations Management
why are oral diseases considered a public health problem in need of a public health solution?
In: Operations Management
Hervis Car Rental in Austin, Texas, has 50 high-performance
Shelby-H Mustangs in its rental fleet. These cars will be in
greater demand than usual during the last weekend in July when the
Central Texas Mustang Club holds its annual rally in Austin. At
times like this, Hervis uses a revenue management system to
determine the optimal number of reservations to have available for
the Shelby-H cars.
Hervis has agreed to have at least 60% of its Shelby-H Mustangs
available for rally attendees at a special rate. Although many of
the rally attendees will request a Saturday and Sunday two-day
package, some attendees may select a Saturday-only or a Sunday-only
reservation. Customers not attending the rally may also request a
Saturday and Sunday two-day package, or make a Saturday-only or
Sunday-only reservation. Thus, six types of reservations are
possible. The cost for each type of reservation is shown
here.
Two-Day |
Saturday- |
Sunday- |
|
Package |
Only |
Only |
|
Rally |
$125 |
$75 |
$65 |
Regular |
150 |
85 |
75 |
The anticipated demand for each type of reservation is as
follows:
Two-Day |
Saturday- |
Sunday- |
|
Package |
Only |
Only |
|
Rally |
20 |
10 |
15 |
Regular |
10 |
20 |
25 |
Hervis Car Rental would like to determine how many Shelby-H
Mustangs to make available for each type of reservation in order to
maximize total revenue.
In: Operations Management
Perform a stockholder's impact analysis for Amazon
In: Operations Management