MGT 4410 Homework #2
Chapter 8 question:
Using the following factor ratings, determine which location alternative (A, B, or C) should be chosen on the basis of maximum composite score.
Location Score
Factor
(100 points each) Weight A B C
Convenience .20 10 60 50
Parking facilities .15 72 76 92
Display area .18 88 90 90
Shopper traffic .27 94 86 80
Operating costs .15 99 95 85
Neighborhood .05 95 80 72
A company that handles hazardous waste wants to minimize the shipping cost for shipments to a disposal center from five receiving stations it operates. Given the locations of the receiving stations and the volumes to be shipped daily, determine the location of the disposal center.
Location of Processing Station (x,y)
Volume, Tons per day
9,4
60
4,1
8
4,7
40
2,6
60
8,7
70
Chapter 10 questions:
Problem 20 on page 458 of textbook.
Each of the processes listed is noncentered with respect to the specifications for that process. Compute the appropriate capability index for each, and decide if the process is capable.
Process
Mean
Standard Deviation
Lower Spec
Upper Spec
H
16
0.32
15.1
17.5
K
34
1
31
37.8
T
19.6
0.4
17.6
21.2
Chapter 13 question:
A bakery buys flour in 25-pound bags. The bakery uses 2,430 bags a year. Ordering cost is $20 per order. Annual carrying cost is $150 per bag.
Determine the economic order quantity.
What is the average number of bags on hand?
How many orders per year will there be?
Compute the total cost of ordering and carrying flour.
A company manufactures hair dryers. It buys some of the components, but it makes the heating element, which it can produce at the rate of 400 per day. Hair dryers are assembled daily, 250 days a year, at a rate of 150 per day. Because of the disparity between the production and usage rates, the heating elements are periodically produced in batches of 1,000 units.
Approximately how many batches of heating elements are produced annually?
If production on a batch begins when there is no inventory of heating elements on hand, how much inventory will be on hand two days later?
What is the average inventory of elements, assuming each production cycle begins when there are none on hand?
The same equipment that is used to make the heating elements could also be used to make a component for another of the firm’s products. That job would require four days, including setup. Setup time for making a batch of the heating elements is a half day. Is there enough time to do this job between production of batches of heating elements? Explain.
Burger Prince buys top-grade ground beef for $1.00 per pound. A large sign over the entrance guarantees that the meat is fresh daily. Any leftover meat is sold to the local high school cafeteria for 80 cents per pound. Four hamburgers can be prepared from each pound of meat. Burgers sell for 60 cents each. Labor, overhead, meat, buns, and condiments cost 20 cents per burger. Demand is normally distributed with a mean of 200 pounds per day and a standard deviation of 50 pounds per day. What daily order quantity is optimal? (Hint: Shortage cost must be in dollars per pound.)