Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 5, Problem 5CQ
Summary Introduction
To identify: If the given statement is true or false regarding implied utilization.
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1)Which of the following statements will hold good in the case of a system with uncertainty in demand for service and in service times?
A)When the utilization of resources fall it is an indication of greater efficiency of the serviceB)It is a good practice to plan for resource utilization levels more than 85%C)Cost of waiting to get serviced is directly proportional to the cost of providing the serviceD)None of the above
PS: Option B is wrong!!!
A Printed Circuit Board (PCB) machine installs integrated circuits onto a board. Before starting to produce a board, the PCB machine requires a 16-minute setup. Once in production, the PCB machine requires only 0.19 minute per board.
a. Currently, the PCB machine produces 525 boards between setups. Given this operating process, what is the capacity of the PCB machine (in boards per min)?
b. Currently, the PCB machine produces 525 boards between setups. Given this operating process, what is the utilization of the PCB machine?
c. Say the PCB machine produces 400 boards s between setups and demand is 2 boards per minute. Given the operating process, what is the avergae inventory of boards anf the PCB machine?
d. Demand for boards occurs at the rate of 2 boards per minute. What is the smallest batch size such that the PCB machine does not constrain the flow rate through the process?
When an operation improves its efficiency, its revenue will always stay constant, whileits costs will go down. True or false?a. Trueb. False
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- A department works one 8-hour shift, 250 days a year, and has these figures for usage of amachine that is currently being considered:ProductAnnualDemandStandard ProcessingTime per Unit (hr)Processing TimeNeeded (hr)1 400 5.0 2,0002 300 8.0 2,4003 700 2.0 1,4005,800Units of capacity needed = Processing time needed ___________________________ Processing time capacity per unit (5–3)Working one 8-hour shift 250 days a year provides an annual capacity of 8 × 250 =2,000 hours per year. Consequently, three of these machines would be needed to handle therequired volume:5,800 hours __________________ 2,000arrow_forward1. Which of the following statements will hold good in the case of a system with uncertainty in demand for service and in service times? a) When the utilization of resources fall it is an indication of greater efficiency of the service b) It is a good practice to plan for resource utilization levels more than 85% c) Cost of waiting to get serviced is directly proportional to the cost of providing the service d) None of the abovearrow_forwardNavern Corporation manufactures and sells custom home elevators. From the time an order is placed until the time the elevator is installed in the customer's home averages 141 days. The 141 days are spent as follows: Wait time Inspection time Process time Move time Queue time What is Navern's manufacturing cycle efficiency (MCE) for its elevators? Multiple Choice O O 41.1% 30.4% 58.9% 29 days 24 days 34 days 31 days 23 days 57.4%arrow_forward
- 7. David was invited to his friend's birthday. He decided to wrap a piece of junk from the basement it wrapping paper and gave it to his friend as a gift, even though he could afford to buy him a nice hin gift. In this case, David is a A. Patrician B. Tightwad C. Justifier D. Spendthrift 8. If a new product increases the ideal state of a customer without changing his or her actual state, then a has been created. A. Opportunity B. Search C. Accident D. Need recognition 9. Which of the following is considered a post-purchase process? A. The shopping experience. B. Mood C. Consumer satisfaction D. Shopping orientation SOBU I Date Saved: Decemberarrow_forwardA small town with one hospital has 4 ambulances to supply ambulance service. Requests for ambulances during nonholiday weekends average 0.70 per hour and tend to be Poisson-distributed. Travel and assistance time averages 2.50 hours per call and follows an exponential distribution Use Table 1. a. Find system utilization. (Round your answer to the nearest whole percent. Omit the "%" sign in your response.) System utilization % b. Find the average number of customers waiting. (Round your answer to 3 decimal places.) Average number of customers c. Find the average time customers wait for an ambulance. (Round your answer to 3 decimal places.) Average time hour d. Find the probability that all ambulances will be busy when a call comes in. (Round intermediate calculations to 3 decimal places and final answer to 2 decimal places.) Probabilityarrow_forwardA company that makes shopping carts for supermarkets and other stores recently purchased somenew 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 of80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the newequipment, it was possible to transfer one of the workers to another department, and equipment costincreased 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 oflabor productivity.arrow_forward
- A company that makes shopping carts for supermarkets and other stores recently purchased somenew 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 of80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the newequipment, it was possible to transfer one of the workers to another department, and equipment costincreased 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 oflabor productivity.b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plusequipment) as the measure.c. Comment on the changes in productivity according to the two measures, and on which one youbelieve is the more pertinent for this situation.arrow_forward1. If capacity exceeds demand, then all flow units are served. True or false?a. Trueb. Falsearrow_forwardWhich of the following statements are true: I. The experience curve represents a linear relationship between output and cost/unit II. Diseconomies of scale are caused by lower operating and capital costs III. There is no relationship between the experience curve and economies of scale IV. Assuming an experience curve, the cost per unit from the 10th to the 11th unit will be higher than the cost from the 25th to the 26th unit Group of answer choices I, II and III are correct statements I, III and IV are correct statements Only I and IV are correct statements Only IV is a correct statement All statements are correct International Paper is trying to find the best paper rolling machine to maximize sales volume. There are three machine options: Machine A, Machine B, and Machine C. Annual revenue is expected to be at one of three possible levels, High, $6 million; Medium, $3 million; or Low, $2 million; but is impacted by machine selection as the probabilities show in the…arrow_forward
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