Operations Management Sawyer Business School Problem 1: (15 pts) Describe the input-output transformation and provide examples of feedbacks and controls: 1) (5 pts) A shipping company 2) (5 pts) A new product development project 3) (5 pts) The cash cycle of a company Problem 2: (15 pts) Provide a short description of the specific meaning of flow time (T), flow rate (R), and inventory level (I) for the following three scenarios. 1) A factory that makes iPhone 6s. 2) A home builder who builds single-family houses. 3) Somerset CafÃ©. Problem 3: (20 pts) Apply Littleâ€™s Law to answer the following two questions. I=RT 1) (10 pts) Suppose that a restaurant makes 400 pizzas per week, each of which uses one-half pound of dough, and that it typically maintains an inventory of 70 pounds of dough. What is the average freshness (in terms of days) of a dough? 2) (10 pts) A branch office of an insurance company processes 10,000 claims per year. Average processing time is three weeks. Assume that the office works 50 weeks per year. How many claims are being processed at any given point? Problem 4: (20 pts) Consider the operation of inspecting used cell phones, which includes three steps (from left to right in the graph below): (1) checking for visible physical damage, (2) inspecting for liquid damage, and (3) testing all main function. The processing rates of one employee performing each step are given in the graph. Calculate system parameters, R0, T0, and I0, of this operation. (cell phone per hour = rate) Problem 5: (60 pts) Consider the following four-workstation production line. Station Number of Machines Processing Time (hours) 1 1 0.05 2 6 0.25 3 3 0.2 4 2 0.167 1) (15 pts) What are the bottleneck rate, raw process time and critical inventory of this production line? 2) (15 pts) Assume that the current inventory level in this production line is 42 parts. What is the flow rate under the practical worst case? If the actual flow rate of this line is 10 jobs per hour, is the line running efficiently or not? 3) (15 pts) If we add an identical machine to Station 4 and keep the same number of inventory as in (b), i.e., 42, what is the flow rate under the practical worst case? If after adding this identical machine, the actual flow rate of the line increases to 14 jobs per hour, is the line running efficiently now? 4) (15 pts) Again, assume that the current inventory level in this production line is 42 parts. If we speed up both machines in Station 4 from each processing 6 jobs per hour to each processing 8 jobs per hour and keep the same number of inventory, what is the flow time under the practical worst case? If the actual flow time that we observed from the production line is 4 hours, is the line running efficiently now? Problem 6: (70 pts) This question is based on the Starbucksâ€™ Operations In-Class Exercise. Some information is modified and additional information is provided, so please read carefully. The following information is available about the operations of a local Starbucks store. A. There are three employees in the store: Cashier who takes all orders and pours drip coffee. Frozen drink maker who prepares blended and iced drinks. Espresso drink maker who prepares espressos, lattes and steamed drinks. B. Three types of drinks are offered: Drip coffee: takes the cashier 20 seconds on average to pour a cup of coffee. Blended and iced drink: takes the frozen drink maker 2 minutes on average to make one. Espresso drink: takes the Espresso drink maker 1.5 minutes on average to make one. C. Average customer demand rate (i.e., ) for each type of drink: Drip coffee: 50 per hour. Blended and iced drink: 20 per hour. Espresso drink: 40 per hour. We also know that each customer spends 20 seconds on average with the cashier to order and pay. (1) (10 pts) Calculate the utilization of the three employees. (2) (10 pts) As an effort to improve operations, the mana
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