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There are some operation management problems that help you for your exam.
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1. Two workers have the job of placing plastic labels on packages before the packages are shipped out. The first worker can place 1000 labels in 30 minutes. The second worker can place 850 labels in 20 minutes. Which worker is more productive? 2. Last week employees at Bluegill produced 46 chairs after working a total of 200 hours. Of the 46 chairs produced, 12 were damaged due to a problem with the new sanding machine. The damaged chairs can be discounted and sold for $25 each. The undamaged chairs are sold to a department store retail chain for $70 each. What was the labor productivity ratio for last week? a) If labor productivity was $15 in sales per hour the previous week, what was the change in labor productivity? 3. One type of bread-making machine can make six loaves of bread in five hours. A new model of the machine can make four loaves in two hours. Which model is more productive? 4. See-Clear Optics is considering producing a new line of eyewear. After considering the costs of raw materials and the cost of some new equipment, the company estimates fixed costs to be $40,000 with a variable cost of $ per unit produced. (a) If the selling price of each new product is set at $100, how many units need to be produced and sold to break even? Use both the graphical and algebraic approaches. (b) If the selling price of the product is set at $80 per unit, See-Clear expects to sell 2000 units. What would be the total contribution to profit from this product at this price? (c) See-Clear estimates that if it offers the product at the original target price of $100 per unit, the company will sell about 1500 units. Will the pricing strategy of $100 per unit or $80 per unit yield a higher contribution to profit? 5. Tasty Ice Cream is a year-round take-out ice cream restaurant that is considering offering an additional product, hot chocolate. Considering the additional machine it would need plus cups and ingredients, it estimates fixed costs to be $200 per year and the variable cost to be $0.20. If it charges $1.00 for each hot chocolate, how many hot chocolates does it need to sell in order to break even?
6. Oakwood Outpatient Clinic is analyzing its operation in an effort to improve performance. The clinic estimates that a patient spends on average 3,5 hours at the facility. The amount of time the patient is in contact with staff (i.e., physicians, nurses, office staff, lab technicians) is estimated at 40 minutes. On average the facility sees 42 patients per day. Their standard has been 40 patients per day. Determine process velocity and efficiency for the clinic. 7. Oakwood Outpatient Clinic rents a magnetic resonance imaging (MRI) machine for 30 hours a month for use on its patients. Last month the machine was used 28 hours out of the month.What was machine utilization? 8. Mop and Broom Manufacturing estimates that it takes 4,5 hours for each broom to be produced, from raw materials to final product. An evaluation of the process reveals that the amount of time spent working on the product is 3 hours. Determine process velocity. 9. Fresh Foods Grocery is considering redoing its facility layout. The from– to matrix showing daily customer trips between departments is shown in Table 10-10, and their current layout is shown in Figure 10-12. Propose a better layout plan for Fresh Foods Grocery. Compute the ld score for Fresh Foods’ current and proposed layouts. Which is better?
11. David’s Sport Supplies is a store that sells sports equipment and gear for teenagers and young adults. David’s is in the process of assigning the location of storage areas in its warehouse (Figure 10-16) to minimize the number of trips made to retrieve needed items. Given here in Table 10-14 are the departments that need to be located, the number of trips made per week for each department, and the area needed by each department.