Solution Manual for Operations Management, 2nd Edition

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1CHAPTER 1INTRODUCTION TO OPERATIONS MANAGEMENTCONCEPTUAL QUESTIONS1.Answer:SloganAemphasizesFit;SloganBemphasizesTiming;SloganCemphasizesPrice;SloganDemphasizesLocation;andSloganEemphasizesPerformance.2.Answer:D.Customer Satisfaction3.Answer:False4.Answer:False5.Answer:Yes6.Answer:C.Fatigue7.Answer:B. An emergency room doctor has no patients at the moment.8.Answer:B.How much do we pay the CEO?9.Answer:B. The amount of land theyrent for grazing sheep.

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2PROBLEMS AND APPLICATIONS1.Answer:C.Location and Time2.Answer:B. Fit.Feedback:Fitis a subcomponent of the consumption utility that captures how wellthe product or service matches with the unique characteristics of a given consumer.3.Answer:A.Performance.Feedback:Performance is a subcomponent of the consumption utility that captureshow much an average consumer desires a product or service.4.Answer:D. Timing.Feedback:The "to-go" section is designed for customers to purchase food quicklyand move on their way to their departure gate. The primary focus is on the speed ofservice, which addresses the timing element of the customer utility function.5.Answer:A.Performance.Feedback:The "special edition" coupe has features that give it a higher level ofperformance compared to the standard model. As a result, the"special edition"vehicle clearly emphasizes the performance dimension of the customer utilityfunction.6.Answer:Hotels B, C, and D.Feedback:The only hotel that is Pareto dominated is hotel A-all other are on theefficient frontier. Hotel A is Pareto dominated by hotel B, as B is both cheaper andbetter.

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37.Answer:Carriers A, B, and C.Feedback:Carrier D is the only one not on the efficient frontier because it isdominated by Carrier A on both measures.8.Answer:Dry Cleaner B.Feedback:Dry Cleaner Bis the only one not on the efficient frontier because it isdominated by both Dry Cleaner A and C on both measures.9.Answer:C.Empty bottles.Feedback:The bottle is a part of the soft drink product.10.Answer:B.Bottling machines.Feedback:The bottling machine is a resource used to manufacture the soft drinks.The other items are inputs and are part of the product.11.Answer:C.Feedback:The only item in the list that is a material used in thedoctor's officeoperations is a needle. The rest of the items would be considered resources.12.Answer:B.Feedback:The only item in the list that is used to transform inputs to outputs is theprojector. The rest of the items in the list would be classified as inputs because theyare materials and supplies used in the operations.13.Answer:D.

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4ck: Employee work schedules set a week in advance14.Answer:C.Feedback:Customers incorrectly list information on forms15.Answer:A and D.Feedback:Convenience refers to the questions of “when” and “where” the demandwill be fulfilled.16.Answer:B.Feedback:The operational efficiency will affect the price that the firm is able tocharge for its product and service to maximize its profitability.17.Answer:C.Feedback:Theproductorservicecharacteristicswillaffecthowmucheachconsumerwillliketheoverallproductorservice,whichismeasuredbyconsumption utility.CASEThere is no case for this chapter.

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1CHAPTER2INTRODUCTION TO PROCESSESCONCEPTUAL QUESTIONS1.Answer:C. Number of customers.Feedback:The number of workers, cash registers, and suppliers are unlikely tochange much over the course of a month and do not “flow”through the process ofthe hardware store.2.Answer:D. The number of patients.Feedback:Physicians, beds, and square footage are unlikely to change much over thecourse of a month and do not “flow” through the process of a hospital.3.Answer:The flow rate is 1,000 passengers per day and the flow time is 5 days.4.Answer:The inventory is 15 voters.Feedback:The flow rate is 1,800 / 10 = 180 per hour, or 180 / 60 = 3 per minute.The flow time is 5 minutes.5.Answer:B.Feedback:The flow rate into a process must equal the flow rate out of a process.6.Answer:B.Feedback:50 callers is an inventory.7.Answer:A.

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2ck:A rate is given in flow units per unit of time, as in six customers over 3-hours.8.Answer:B.Feedback:That is flow units per unit of time, which is a flow rate.9.Answer:False.Feedback:Little’s Law applies even if there are fluctuations in inventory, flow rates,and flow times.10.Answer:False.Feedback:The same time units must be used for the flow rate and the flow time.11.Answer:C.Feedback:Flow rates are flow units per time period.PROBLEMS AND APPLICATIONS1.Answer:D.Feedback:The number of customers is the appropriate flow unit for processanalysis. The employees are resources, and the other two measures are unlikely tochange from week to week.2.Answer:B.Feedback:The number of tax returns completed each week reflects the mainoperation of the accounting firm during tax season. The accountants are resources;the customers with past-due invoices reflect the accounts receivable process andnot the main operation; andthe reams of paper received are a result of the firm’spurchasing policies and not necessarily the main operation.

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33.Answer:A and Dare correctFeedback:The gasoline pumps and employees areresources, not flow units.4.Answer:0.4 callers per minuteFeedback:8 calls divided by 20 minutes = 0.4 calls per minute.5.Answer:4 minutesFeedback:To calculate the flow time of the callers, subtract the callers departuretime from his or her arrival time. 32 total minutes divided by 8 callers = 4 minutes.6.Answer:0.1667 customers per minuteFeedback:Flow rate = 10 customers divided by 60 minutes = 0.1167.7.Answer:8.6 minutesFeedback:To calculate the flow time of the customers, subtract the customersdeparture time from his or her arrival time. 86 total minutes divided by 10customers = 8.6 minutes.8.Answer:1/6.Feedback:5 customers per 30 minutes = 1/6 customer perminute.9.Based on the data provided in Table 2.6, what is the flow time of customersfrom 3:30 to4:00 pm?Answer:6 minutesFeedback:(2+10+12+1+5)/5 = 6 minutes.10.Answer:4 minutes

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4ck:To solve this problem, use Little’s Law. Inventory = Flow rate × Flow time.10people in line (average inventory) = 2.5 flow rate x flow timeFlow time = 4 minutesThe flow rate is 300 customers divided by 120 minutes = 2.511.Answer:90,000 wafersFeedback:100 per second x 60 seconds per minute x 15 minutes = 90,00012.Answer:360 skiersFeedback:1,800 skiers divided by 60 minutes per hour (flow rate) x 12 minutes(flow time) = 360 skiers13.Answer:8,539 visitorsFeedback:Flow rate = 3,400,000 visitors divided by 365 days = 9,315.07 visitors perdayFlow Rate = 22 hours/ 24 hours per day = .9167 dayInventory = 9,315.07 (flow rate) x 0.9167 (flow time) = 8539.12 visitors per day14.Answer:900,000 patientsFeedback:6 months (flow time) x 150,000 new patients per month = 900,000patients15.Answer:20 chat sessionsFeedback:Flow rate = 240 chats divided by 30 employees = 8Flow time = 5 minutes divided by 60 minutes = 0.833 hourInventory = Flow Rate x Flow Time, 8 x 0.833= 0.6667 x 30 employees = 20 chats

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516.Answer:840 unitsFeedback:4,200 units divided by (12 minutes/60 minutes) = 840 units17.Answer:120 skiersFeedback:1,200 beds divided by 10 days = 120 new skiers per day.18.Answer:7.5 minutesFeedback:To solve this problem, use Little’s Law. Inventory = Flow rate × Flow time.30 people in line (average inventory) = 240 customers/ 60 minutes (flow rate) xflow time.Flow time = 7.5 minutes19.Answer:8 years.Feedback:120 associates = 15 new employees x flow time. Flow time = 820.Answer:1,120,000.21.Answer:1.33.22.Answer:15.

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6CASEAlthough the analysis of the case is relatively simple, the intuition is not always easy tograsp–many students will intuitively believe that the capacity of the faster lift should begreater than the capacity of the slower lift. The main lesson in thiscase is to get students tounderstand why that intuition is not correct.To begin the case discussion, ask the students their opinion as to who is correct, Mark(unloading capacity should be twice as high on the detachable lift) or Doug (the unloadingcapacity should be the same on the two lifts). Hopefully there are students who supporteach opinion.To resolve the question, begin with the simple process flow diagram:Ask the question “Do all of the skiers that get on the lift at the bottom get off the lift at thetop?” Of course, the answer is “We would hope so!”. So “What does that mean about howthe rate of skiers getting on the lift, Ron, is related to the rate of skiers getting off the lift,Roff?” And the answer there must be that they are equal! If the rate on where faster thanthe rate off, the number of people on the lift would grow and grow and grow. We know thatcan’t happen. Similarly, if the rate off exceeded the rate on, then the number of people onthe lift would shrink and shrink and shrink, leaving the lift eventually with nobody. Whichalso doesn’t happen.So we can add to our process flow diagram:Now it is time to compare the two lifts. We can draw the process flow for each of them,emphasizing that the rate on for each must equal the rate off:LiftSkiersSkiersLiftSkiersSkiersRonRoff=

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7Now ask students “How can we compare the rates across the two types of lifts?” Theanswer is given in the case–we are told that the rate skiers load onto the slow (fixed grip)lift is the same as the rate they load onto the fast (detachable) lift. That means that Rs= Rf.And that means that the rates that they onload skiers at the top must be the same!Thus, Doug is correct–both lifts have the same capacity to unload skiers at the top eventhough one is faster than the other.And this brings us to Jessica’s question–so what is the difference between the two lifts? Ifyou ask students this question, the likely first response is that skiers spend less time on thefaster lift. And that is correct. But are there other differences? Actually, there are twoadditional differences worth mentioning. The first comes from Little’s Law and the 2ndonerequires a deeper understanding of this process.Slow LiftRsRsFast LiftRfRfSlow LiftRsRsFast LiftRfRf==

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8The first obvious difference is the number of skiers on the lift. According to Little’s Law, I =R x T. So if the two lifts have the same R, but the faster lift has a smaller T, then the fasterlift must have a smaller I as well:So fewer people are on the faster lift and they spend less time on the lift but the faster liftand the slower lift bring skiers to the top at the same rate.If students can’t get the next difference between the two lifts, then you can prompt themwith the following question “If the faster lift has fewer skiers than the slower lift, thenwhere are the additional skiers?” Or put another way: “If the ski area attracts a certainnumber of skiers but the faster lift has fewer skiers on it, then where are the other skiers?”The answer is that they are on the slopes! That means that adding a faster lift takes skiersoff the lift but they don’t disappear. Instead, theyare on the only other place they can be,the slopes. Which means, somewhat counter-intuitively, that adding a faster lift makes theslopes more crowded (holding the total number of skiers fixed).Fast LiftTf= seconds on liftIf= # of skiersRRTf< TsIf= R x Tf< R x Ts= Is

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1CHAPTER3PROCESS ANALYSISCONCEPTUAL QUESTIONS1.Answer:B.How long does it take the office to process an application?2.Answer:D.Chefs3.Answer:C.Paying the bill4.Answer:B.They are reciprocals of each other.5.Answer:A.Capacity constrained6.Answer:C.The cycle time7.Answer:D.1.008.Answer:B.Equal to9.Answer:A.Machine-paced10.Answer:B.Shorter than the average flow time

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2PROBLEMS AND APPLICATIONS1.(a)Answer:4 customers per hourFeedback:60 minutes/15 minutes = 4 customers per hour;(b)Answer:2 customers per hour(c)Answer:50 percentFeedback:2 demand / 4 capacity = 50%;(d)Answer:30 minutes per customerFeedback:Cycle time = 1/flow rate, 2/ 60 minutes= 30minutes per customer2.(a)Answer:72 visits per 9 hour work dayFeedback:12 nurses × 9 hours/1.5 hours per visit = 72 visits;(b)Answer:83 percentFeedback:60 demand/ 72 capacity = 83 utilization;(c)Answer:9 minutes per patientFeedback:(9 hours × 60 minutes) / 60 patients = 9.0 minutes per patient3.(a)Resource 1Resource 2Resource 3

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3(b)Answer:0.333 units per minuteFeedback:1 unit / 3 minutes per unit = 0.333 units per minute.(c)Answer:Resource 1Feedback:Resource 1 has the longest processing time.(d)Answer:50%Feedback:Demand = 60 minutes / 6 minutes Resource 1bottleneck = 10 units,Capacity 60 minutes / 3 minutes = 20 unitsUtilization = 10 units / 20 units = 50%(e)Answer:1,208minutesFeedback:200 units × 6 minutes Resource 1 + 3 minutes Resource 2 + 5 minutesResource 3 = 1,208 minutes.4.(a)(b)Answer:1,200 bottles per hour(c)Answer:Packaging(d)BottlingApplyaLidLabelingPackaging

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