Ashlee's Beach Chairs Company produces upscale beach chairs.
Annual demand for the chairs is estimated at 1,000 units. The
frames are made in batches before the final assembly process.
Ashlee's final assembly department needs frames at a rate of 20 per
week. Ashlee's frame department can produce 25 frames per week. The
setup cost is $100/setup, the annual holding cost per frame is $4,
and the cost of production $30 a frame. The company operates 50
weeks per year. Set up an optimum inventory system for Ashlee that
would minimize the annual cost of the inventory system. Find the
following:
a. Production quantity (Q)
b. Number of production runs
c. Length of production run (tp)
d. Peak inventory
e. Average inventory
f. Idle time (ti)
g. Cycle time
h. Number of cycles
i. Total annual inventory cost (T)
j. Total annual cost of the system (TS)
In: Operations Management
Discuss 3 advantages and disadvantages of hiring from within vs. hiring externally. Provide an example where it would be better to promote internally, and one example where is it better to hire externally?
In: Operations Management
Case - 3 | ||||||||||||||
You are newly appointed assistant plant manager and have been assigned the task of | ||||||||||||||
examining ordering policies for supplies used in production. You found that your employer | ||||||||||||||
was using an EOQ policy for ordering cases of lubricating oil. You called the finance | ||||||||||||||
department and was told that for the purposes of analysis, the appropriate holding cost | ||||||||||||||
was 24 % per year. Demand over the past three years was for 7486 cases or an average | ||||||||||||||
of 2495 cases per year. At a cost of $ 6.32 per case, the cost of ordering the oil was | ||||||||||||||
estimated to be $ 83 per order. You used these numbers to find the EOQ. | ||||||||||||||
EOQ = ? 2DS / H | .= ? [2* (7486 / 3) *83 ] / 0.24 * 6.32 | .? 523 | ||||||||||||
The result basically agreed with the employer's ordering size of 500. You then developed a table | ||||||||||||||
showing oil usage for the past 36 months. | ||||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | ||
Gross requirement 2003 | 345 | 28 | 417 | 52 | 0 | 379 | 288 | 76 | 221 | 34 | 322 | 227 | 2389 | |
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | ||
Gross requirement 2004 | 379 | 32 | 489 | 50 | 4 | 433 | 267 | 83 | 244 | 32 | 354 | 259 | 2626 | |
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | ||
Gross requirement 2005 | 368 | 4 | 423 | 48 | 15 | 382 | 306 | 84 | 218 | 38 | 333 | 252 | 2471 | |
Gross Total | 7486 | |||||||||||||
Note: | Holding cost is per period | |||||||||||||
Also the case assumes there are 36 periods | ||||||||||||||
So Holding cost is to be defined for a month | ||||||||||||||
Now you are going to experiment on the past figures to calculate optimal inventory cost. | ||||||||||||||
Q-1 Would lot for lot ordering be better than the current EOQ policy? Show calculations as proof. | ||||||||||||||
Q-2 Would part period balancing be the best possible policy? Show calculations as proof. | ||||||||||||||
Q-3 Is just in time inventory a relevant notion for lot sizing? | ||||||||||||||
Q-4 How many orders would you recommend in 36 months? Show order cost as proof. | ||||||||||||||
Q-5 Give recommendations with solid arguments? | ||||||||||||||
Q-6 Any suggestions for improvements. |
In: Operations Management
Discuss the major advantages and disadvantages of survey research methods over qualitative methods.
In: Operations Management
Skycell, a major European cell phone manufacturer, is making production plans for the coming year. Skycell has worked with its customer (the service providers) to come up with forecast of monthly requirements (in thousands of phones) as shown in Table 1.
Month |
Demand (in ‘000s) |
Jan |
250 |
Feb |
275 |
Mar |
250 |
Apr |
300 |
May |
375 |
Jun |
400 |
Jul |
400 |
Aug |
200 |
Sept |
275 |
Oct |
175 |
Nov |
350 |
Dec |
425 |
Manufacturing is primarily an assembly operation, and the number of people on the production line governs capacity. The plant operates for 20 days a month, eight hours each day. One person can assemble a phone every 5 minutes. Workers are paid $25 per hour and a 50 percent premium for overtime. The plant currently employs 1000 workers. Component costs for each cell phone total $30. Given the rapid decline in component and finishing product prices, carrying inventory from one month to the next incurs a cost of $3 per phone per month. Skycell currently has a no-layoff policy in place. Overtime is limited to a maximum of 25 hours per month per employee. Assume that Skycell has a starting inventory of 40,000 units and wants to end the year with the same level of inventory.
a) Assuming no backlogs, no subcontracting, and no new hires, what is the optimum production schedule? What is the annual cost to this schedule?
b) Is there any value for management to negotiate an increase of allowed overtime per employee per month from 25 hours to 50 hours?
c) Reconsider parts (a) and (b) if Skycell starts with only 800 employees. Reconsider parts (a) and (b) if Skycell starts with 1500 employees. What happens to the value of additional overtime as the workforce size decreases?
In: Operations Management
In: Operations Management
As part of a rapidly growing firm located in the US, your CEO has asked you to find out more about US requirements for exporting. Using the following link, Export.Gov, describe what you find about common export documentation. Select at least one of the documents and describe its purpose in greater detail.
In: Operations Management
What is the relationship between Transportation Resource Planning solutions and ERP solutions? Be sure to cite or include links to your sources.
In: Operations Management
1. Describe the implications of the threat of transportation disruptions, hazards, and risks as they apply to transportation and explain why they are important from financial and service standpoints?
In: Operations Management
Comapny is APPLE, Inc
Summarize the company. - Apple (who you are - Software developer) (Team you manage – App management ).
What type of training do your employee needs?
Why do they need training?
Need Analysis info
Determine an instructional scenario where new or revised training is appropriate; where there is an obvious gap between knowledge and performance.
Determine what techniques you will use to gather data to substantiate the instructional need (surveys,questionnaires, interviews, etc).
Develop a needs assessment instrument.
Survey your target population/gather data.
Collect/analyze data.
Write a summary of the needs assessment data that includes the following:
- a description of your target population based on your analysis
- a description of the instructional need your team has uncovered
- a description of the instructional solution your team will create
- three to five instructional outcomes
In: Operations Management
Nolan Banks is an auditor for the Public Service Commission for the state of Georgia. The PublicService Commission is a government agency responsible for ensuring that utility companies throughout the state manage their operations efficiently so that they can provide quality services to the public at fair prices. Georgia is the largest state east of the Mississippi River, and various communities and regions throughout the state have different companies that provide water, power, and phone service. These companies have a monopoly in the areas they serve and, therefore, could take unfair advantage of the public. One of nolan's jobs it to visit the companies and audit their financial records to detect whether or not any abuse is occuring. A major problem Nolan faces in his job is determining whether the expenses reported by the utility companies are reasonable. For example, when he reviews a financial report for a local phone company, he might see cable line maintenance costs of $1,345,948, and he needs to determine if this amount is responsible. This determination is complicated by the fact that the companies differ in size - so he cannot compare the costs of one company directly to another. Similarly, he cannot come up with a simple ratioo to determine costs (such as 2% for the ratio of line maintenance costs to total revenue) because a single ratio might not be appropriate for companies of different sizes.
To help solve this problem, Nolan wants you to build a regression model to estimate what level of line maintenance expense would be expected for companies of different sizes. One measure of size for a phone company is the number of customers it has. Nolan collected the data in the file PhoneService.xlsx representing the numeber of customers and line maintenance of 12 companies he audited in the past year and determined being run in a reasonably efficient manner.
What level of line maintenance expense would be expected for a phone company with 75,000 cutomers according to this new estimated regression function? Show how you arrive at the value.
(Y= b0+b1x1+b2x2/1)
X | Y | XY | X sq | Forecast Y |
Customers (in 1000s) | Line Maint. Expense (in $1000s) | |||
25.3 | 484.6 | 12260.38 | 640.09 | 413.00 |
36.4 | 672.3 | 24471.72 | 1324.96 | 579.80 |
37.9 | 839.4 | 31813.26 | 1436.41 | 602.30 |
45.9 | 694.9 | 31895.91 | 2106.81 | 722.50 |
53.4 | 836.4 | 44663.76 | 2851.56 | 835.10 |
66.8 | 681.9 | 45550.92 | 4462.24 | 1036.40 |
78.4 | 1,037.0 | 81300.8 | 6146.56 | 1210.60 |
82.6 | 1,095.6 | 90496.56 | 6822.76 | 1273.70 |
93.8 | 1,563.1 | 146618.78 | 8798.44 | 1441.90 |
97.5 | 1,377.9 | 134345.25 | 9506.25 | 1497.50 |
105.7 | 1,711.7 | 180926.69 | 11172.49 | 1620.70 |
124.3 | 2,138.6 | 265827.98 | 15450.49 | 1900.00 |
In: Operations Management
Describe the types of transportation challenges that organizations must take into account when considering global sourcing and substantiate your answer with at least two referenced examples
In: Operations Management
Can you think of a situation in which you were reluctant to delegate authority to someone else? The person may have been an employed subordinate, a friend, a little brother or sister, or perhaps your spouse or child. Why were you unwilling to delegate? One the other hand, can you think of a situation in which authority was delegated to you, and you felt uneasy about your new responsibility or even turned it down?
In: Operations Management
Using the Internet or other or any other resource, research one of the Supply Chain Management Process Standards (Plan, Source, Make, Deliver, Return and Enable) and then identify and describe one commercial software product that was designed support that process. Be sure to cite or include links to your sources.
In: Operations Management
Teaming Across Distance and Culture. • What are the major effects of the physical separation of group members? How can distance, in some cases, be beneficial to groups and teams? • What other areas of organizational behavior or design are impacted by information technology, and what are the implications for organizational change? • Brainstorm some ways to “redesign” your office space (or an office space you have previously worked in) on paper using virtual or flexible space, or flexible furniture. How would this redesign enhance successful teamwork? • What are some of the ways that cross-cultural teams are distinguished from other types of teams? What are some of the benefits and difficulties of building a cross-cultural team?
In: Operations Management