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i need this solved as quick as possible please. i need the answers in a word document as well

Operations Management 73-331 1. For each question, your answers to each individual part should be typed in


MICROSOFT WORD. Submit ONE Word document containing the answers to


all the questions and their respective parts.


2. If a question requires you to do a graph (e.g. decision trees), you can draw your


decision treey by hand, then use a scanner to scan your graph (as JEPG file) (or you


can also use your phone to take a picture of your graph). You can then copy your


graph/tree and paste it in your Word document.




a) Briefly explain the concept of core competencies in your own words. Provide


examples of a core competency for a bank, a retail store, and an auto




b) Name some operations management problems that occur in constructing a




c) How are operations decisions affected by policies in marketing? In human


resources? In finance.


d) What capacity-related design considerations and demand modifications are most


important to a city that is planning to build a sports arena?


e) For the following 2 organizations: telephone company and furniture re-upholstery


shop, give a few examples of inputs, resources, and outputs. State whether the


operation would be labor- or capital-intensive.


f) Textbook: 1-6 page 29.




Sterling Motors is a telephone or mail-order dealer in British auto parts. Sterling


has six telephones for receiving orders. Order takers (6) answer the telephones, check


inventory availability, and prepare picking tickets for the warehouse stock pickers. One


order may consist of several lines, with a different part or multiple of a part ordered on


each line. Each order taker can prepare picking tickets at a rate of one line every three


minutes. The telephones are normally answered weekdays from 6 a.m. to 4 p.m. Stock


pickers can fill and package parts at a rate of one line every five minutes. Sterling


employs eight stock pickers, who normally work weekdays from 8 a.m. to 5 p.m. (expect


for lunch hours)


a) What is the effective capacity of order taking in lines per week? What about the


stock picking area?


b) For three weeks after the spring catalogue is mailed in May, the eight warehouse


employees work 10 hours per day between 7 a.m. and 6 p.m., six days per week.


What is the peak capacity of the system in lines per week?


c) During the second week of May, Sterling filled 5000 order lines. What is the


capacity utilization? 1 Operations Management 73-331 QUESTION #3:


You have been asked to put together a capacity plan for a critical bottleneck


operation at the Surefoot Sandal Company (SSC). Your capacity measure is number of


machines. Three products (men?s, women?s, and children?s sandals) are manufactured.


On average, about 10000 sandals are in various stages of production. The time standards


(processing and setup times), batch (or lot) sizes, and demand forecast are given in the


following table. The firm operates two eight-hour shifts, five days per week, fifty weeks


per year. Experience shows that a capacity cushion of 5 percent is sufficient.


Product Processing


(hr./pair) Setup


(hr./batch) Batch size


(pairs/batch) Men?s sandals


Women?s sandals


Children?s sandals 0.05




0.02 0.5




3.8 240




360 Demand










120000 a) How long (expressed in days) does a typical pair of sandals take to move through


the manufacturing process? (Hint: This time is known as the throughput (or flow)


time; use Little?s Law).


b) Determine the peak capacity (in number of hours of operation per year) SSC


should plan for its production plan?


c) Determine the effective capacity SSC should use to set its production plan if it


wants to include a 5% capacity cushion (Note: effective capacity is less than peak




d) How many machines are needed if the production plan is based on the effective


capacity? (Hint: Let D = annual demand, Q = batch size, and N = number of


setups per year, then D = N×Q.)


e) If the operation currently has two machines, what is the capacity gap?




Managers in a company are using the concept of the learning curve in estimating


production-labour-hour requirements for a product. They estimate that by the time the


10th unit is produced, learning will have occurred to the point that this unit will require 75


direct labour hours. From previous experience with this type of product, they estimate


that it will follow 90% learning rate.


a) Determine the number of direct labour hours required to produce the first unit.


b) How many labour hours will be required to produce the eightieth unit? 2


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