HW-2024

1. 4.
A company that makes shopping carts for supermarkets and other stores recently purchased
some new equipment that reduces the labor content of the jobs needed to produce the shopping
carts. Prior to buying the new equipment, the company used five workers, who produced an
average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour.
With the new equipment, it was possible to transfer one of the workers to another department, and
equipment cost increased by $10 per hour while output increased by four carts per hour.
a. Compute labor productivity under each system. Use carts per worker per hour as the measure of
labor productivity.
b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus
equipment) as the measure.
c. Comment on the changes in productivity according to the two measures, and on which one you
believe is the more pertinent for this situation.
2. A firm’s manager must decide whether to make or buy a certain item used in the production of
vending machines. Making the item would involve annual lease costs of $150,000. Cost and
volume
estimates are as follows:
a. Given these numbers, should the firm buy or make this item?
b. There is a possibility that volume could change in the future. At what volume would the
manager
be indifferent between making and buying?
3. Daffy Dave’s Sub Shop makes custom submarine sandwiches to order. It is analyzing the
processes at its shop. The general flow of the process is shown as follows. A different person is
working at each of the steps in the process.
Daffy Dave wants to figure out the following for a typical eight-hour work day.
a. What is the current maximum output of the process per day?
b. If we add another person, where would we add him or her and what is the benefit?
c. Is there a benefit if we can shift one minute from Bun and Meat to Order Taking? Assume we do
not make the change in part (b).
d. Is there a benefit if we shift one minute of work from Condiments to Bagging? Assume we do
not make changes in parts (b) and (c).
4. A producer of inkjet printers is planning to add a new line of printers, and you have been asked
to balance the process, given the following task times and precedence relationships. Assume that
cycle time is to be the minimum possible.
Do each of the following:
(1) Draw the precedence diagram.
(2) Assign tasks to stations in order of most following tasks. Tiebreaker: greatest positional
weight.
(3) Determine the percentage of idle time.
(4) Compute the rate of output in printers per day that could be expected for this line assuming a
420-minute working day
5. A time study analyst timed an assembly operation for 30 cycles, and then computed the average
time per cycle, which was 18.75 minutes. The analyst assigned a performance rating of .96, and
decided that an appropriate allowance was 15 percent. Assume the allowance factor is based on
the workday. Determine the following: the observed time (OT), the normal time (NT), and the
standard time (ST).
6. A clothing manufacturer produces women’s clothes at four locations in Mexico. Relative

locations have been determined, as shown in the table below. The location of a central shipping
point for bolts of cloth must now be determined. Weekly quantities to be shipped to each location
are also shown in the table. Determine the coordinates of the location that will minimize
distribution costs
7. The time to replace vehicle wiper blades at a service center was monitored using a mean and a
range chart. Six samples of n = 20 observations were obtained and the sample means and ranges
computed:
a. Using the factors in slide, determine upper and lower limits for mean and range charts.
b. Is the process in control?
8. The following table lists the components needed to assemble an end item, lead times (in weeks),
and quantities on hand.
a. If 40 units of the end item are to be assembled, how many additional units of B are needed?
(Hint: You don’t need to develop an MRP plan.)
b. An order for the end item is scheduled to be shipped at the start of week 8. What is the latest
week that the order can be started and still be ready to ship on time? (Hint: You don’t need to
develop an MRP plan.)
9. Determine which of these three processes are capable:

10. Consider the following case, where
D = 10,000 units (annual demand)
S = $20 to place each order
i = 20 percent of unit price/cost (annual holding cost: storage, interest, obsolescence, etc.)
C = unit price (according to the order size)
 orders of 0 to 499 units, $5.00 per unit;
 orders of 500 to 999, $4.50 per unit;
 orders of 1,000 and up, $3.90 per unit
What quantity should be ordered?

HW-2024

Uploaded by

Copyright:

Available Formats

HW-2024

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

HW-2024

Uploaded by

Copyright:

Available Formats

1. 4.

6. A clothing manufacturer produces women’s clothes at four locations in Mexico. Relative

9. Determine which of these three processes are capable:

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.