Operations Management, (Mcgraw-hill Education Operations and Decision Sciences) 1st Edition Solution Manual

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1
CHAPTER 1
INTRODUCTION TO OPERATIONS MANAGEMENT
CONCEPTUAL QUESTIONS
1.
Answer: Slogan A emphasizes Fit; Slogan B emphasizes Timing; Slogan C
emphasizes Price; Slogan D emphasizes Location; and Slogan E emphasizes
Performance.
2.
Answer: D. Customer Satisfaction
3.
Answer: False
4.
Answer: False
5.
Answer: Yes
6.
Answer: C. Fatigue
7.
Answer: B. How much do we pay the CEO?
PROBLEMS AND APPLICATIONS
1.
Answer: C. Location and Time

2
2.
Answer: B. Fit.
Feedback: Fit is a subcomponent of the consumption utility that captures how well
the 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 captures
how 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 quickly
and move on their way to their departure gate. The primary focus is on the speed of
service, 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 of
performance compared to the standard model. As a result, the "special edition"
vehicle clearly emphasizes the performance dimension of the customer utility
function.
6.
Answer: Hotels B, C, and D.
Feedback: The only hotel that is Pareto dominated is hotel A - all other are on the
efficient frontier. Hotel A is Pareto dominated by hotel B, as B is both cheaper and
better.
7.
Answer: Carriers A, B, and C.
Feedback: Carrier D is the only one not on the efficient frontier because it is
dominated by Carrier A on both measures.

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8.
Answer: Dry Cleaner B.
Feedback: Dry Cleaner B is the only one not on the efficient frontier because it is
dominated 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 the doctor's office
operations 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 the
projector. The rest of the items in the list would be classified as inputs because they
are materials and supplies used in the operations.
13.
Answer: D.
Feedback: Employee work schedules set a week in advance
14.
Answer: C.
Feedback: Customers incorrectly list information on forms

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15.
Answer: A and D.
Feedback: Convenience refers to the questions of “when” and “where” the demand
will be fulfilled.
16.
Answer: B.
Feedback: The operational efficiency will affect the price that the firm is able to
charge for its product and service to maximize its profitability.
17.
Answer: C.
Feedback: The product or service characteristics will affect how much each
consumer will like the overall product or service, which is measured by
consumption utility.
CASE
There is no case for this chapter.

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CHAPTER 2
INTRODUCTION TO PROCESSES
CONCEPTUAL QUESTIONS
1.
Answer: C. Number of customers.
Feedback: The number of workers, cash registers, and suppliers are unlikely to
change much over the course of a month and do not “flow” through the process of
the hardware store.
2.
Answer: D. The number of patients.
Feedback: Physicians, beds, and square footage are unlikely to change much over the
course 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: False.
Feedback: Little’s Law applies even if there are fluctuations in inventory, flow rates,
and flow times.

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PROBLEMS AND APPLICATIONS
1.
Answer: D.
Feedback: The number of customers is the appropriate flow unit for process
analysis. The employees are resources, and the other two measures are unlikely to
change from week to week.
2.
Answer: B.
Feedback: The number of tax returns completed each week reflects the main
operation of the accounting firm during tax season. The accountants are resources;
the customers with past-due invoices reflect the accounts receivable process and
not the main operation; and the reams of paper received are a result of the firm’s
purchasing policies and not necessarily the main operation.
3.
Answer: A and D are correct
Feedback: The gasoline pumps and employees are resources, not flow units.
4.
Answer: 0.4 callers per minute
Feedback: 8 calls divided by 20 minutes = 0.4 calls per minute.
5.
Answer: 4 minutes
Feedback: To calculate the flow time of the callers, subtract the callers departure
time from his or her arrival time. 32 total minutes divided by 8 callers = 4 minutes.
6.
Answer: 0.1667 customers per minute
Feedback: Flow rate = 10 customers divided by 60 minutes = 0.1167.
7.
Answer: 8.6 minutes

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Feedback: To calculate the flow time of the customers, subtract the customers
departure time from his or her arrival time. 86 total minutes divided by 10
customers = 8.6 minutes.
8.
Answer: 4 minutes
Feedback: To solve this problem, use Little’s Law. Inventory = Flow rate × Flow time.
10 people in line (average inventory) = 2.5 flow rate x flow time
Flow time = 4 minutes
The flow rate is 300 customers divided by 120 minutes = 2.5
9.
Answer: 90,000 wafers
Feedback: 100 per second x 60 seconds per minute x 15 minutes = 90,000
10.
Answer: 360 skiers
Feedback: 1,800 skiers divided by 60 minutes per hour (flow rate) x 12 minutes
(flow time) = 360 skiers
11.
Answer: 8,539 visitors
Feedback: Flow rate = 3,400,000 visitors divided by 365 days = 9,315.07 visitors per
day
Flow Rate = 22 hours/ 24 hours per day = .9167 day
Inventory = 9,315.07 (flow rate) x 0.9167 (flow time) = 8539.12 visitors per day
12.
Answer: 900,000 patients
Feedback: 6 months (flow time) x 150,000 new patients per month = 900,000
patients
13.
Answer: 20 chat sessions
Feedback: Flow rate = 240 chats divided by 30 employees = 8
Flow time = 5 minutes divided by 60 minutes = 0.833 hour

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Inventory = Flow Rate x Flow Time, 8 x 0.833= 0.6667 x 30 employees = 20 chats
14.
Answer: 840 units
Feedback: 4,200 units divided by (12 minutes/60 minutes) = 840 units
15.
Answer: 120 skiers
Feedback: 1,200 beds divided by 10 days = 120 new skiers per day.
16.
Answer: 7.5 minutes
Feedback: 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) x
flow time. Flow time = 7.5 minutes
17.
Answer: 8 years
Feedback: 120 associates = 15 new employees x flow time. Flow time = 8
CASE
Although the analysis of the case is relatively simple, the intuition is not always easy to
grasp – many students will intuitively believe that the capacity of the faster lift should be
greater than the capacity of the slower lift. The main lesson in this case is to get students to
understand 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 unloading
capacity should be the same on the two lifts). Hopefully there are students who support
each opinion.
To resolve the question, begin with the simple process flow diagram:

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Ask the question “Do all of the skiers that get on the lift at the bottom get off the lift at the
top?” Of course, the answer is “We would hope so!”. So “What does that mean about how
the 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 than
the rate off, the number of people on the lift would grow and grow and grow. We know that
can’t happen. Similarly, if the rate off exceeded the rate on, then the number of people on
the lift would shrink and shrink and shrink, leaving the lift eventually with nobody. Which
also 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:
Lift
Skiers Skiers
Lift
Skiers Skiers
Ron Roff
=
Slow LiftRs Rs
Fast LiftRf Rf

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Now ask students “How can we compare the rates across the two types of lifts?” The
answer 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 even
though one is faster than the other.
And this brings us to Jessica’s question – so what is the difference between the two lifts? If
you ask students this question, the likely first response is that skiers spend less time on the
faster lift. And that is correct. But are there other differences? Actually, there are two
additional differences worth mentioning. The first comes from Little’s Law and the 2nd one
requires a deeper understanding of this process.
The 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 faster
lift must have a smaller I as well:
Slow LiftRs Rs
Fast LiftRf Rf
= =
Fast Lift
T f = seconds on lift
I f = # of skiers
R R
T f < Ts
I f = R x T f < R x Ts = I s

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So fewer people are on the faster lift and they spend less time on the lift but the faster lift
and 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 them
with the following question “If the faster lift has fewer skiers than the slower lift, then
where are the additional skiers?” Or put another way: “If the ski area attracts a certain
number 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 skiers
off the lift but they don’t disappear. Instead, they are on the only other place they can be,
the slopes. Which means, somewhat counter-intuitively, that adding a faster lift makes the
slopes more crowded (holding the total number of skiers fixed).

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2
PROBLEMS AND APPLICATIONS
1.
(a)
Answer: 4 customers per hour
Feedback: 60 minutes/15 minutes = 4 customers per hour;
(b)
Answer: 2 customers per hour
(c)
Answer: 50 percent
Feedback: 2 demand / 4 capacity = 50%;
(d)
Answer: 30 minutes per customer
Feedback: Cycle time = 1/flow rate, 2/ 60 minutes= 30 minutes per customer
2.
(a)
Answer: 72 visits per 9 hour work day
Feedback: 12 nurses × 9 hours/1.5 hours per visit = 72 visits;
(b)
Answer: 83 percent
Feedback: 60 demand/ 72 capacity = 83 utilization;
(c)
Answer: 9 minutes per patient
Feedback: (9 hours × 60 minutes) / 60 patients = 9.0 minutes per patient
3.
(a)

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(b)
Answer: 0.333 units per minute
Feedback: 1 unit / 3 minutes per unit = 0.333 units per minute.
(c)
Answer: Resource 1
Feedback: 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 units
Utilization = 10 units / 20 units = 50%
(e)
Answer: 1,208 minutes
Feedback: 200 units × 6 minutes Resource 1 + 3 minutes Resource 2 + 5 minutes
Resource 3 = 1,208 minutes.
4.
(a)
(b)
Answer: 1,200 bottles per hour
(c)
Answer: Packaging
(d)
Bottling Apply a
Lid
Labeling Packaging

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Answer: 900 bottles per hour
(e)
Answer: 75%
(f)
Answer: 1,996 + 16 = 2,012 seconds
5.
a)
(b)
Answer: 20 patients per hour
Feedback: 10 workers × (60 minutes per hour/30 minutes per patient) = 20 patients
per hour.
(c)
Answer: The dental assistants
Feedback: The dental assistants have the lowest capacity of 12 patients per hour, 3
dental assistants × (60 minutes per hour/ 15 minutes per patient) = 12 patients per
hour.
(d)
Answer: 12 patients per hour
Feedback: The Flow Rate = 12 patients per hour, 3 dental assistants × (60 minutes
per hour/ 15 minutes per patient) = 12 patients per hour.
(e)
Answer: 50%
Feedback: Receptionists capacity = 2 receptionists × (60 minutes per hour/5
minutes per patient) = 24 patients per hour.
Self-
Serve
Receptionist Dental
Assistant
Dentist

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Utilization = 12 patients per hour at the bottleneck/24 patients per hour capacity =
50%
(f)
Answer: 100 minutes
Feedback: [(5/2) at bottleneck x 20] + 5 Self-Serve + 15 Dental Assistant + 30
Dentist = 100 minutes.
6.
(a)
Answer: 5 batches per hour
Feedback: Since there is only one machine at each process step, the capacity is the
reciprocal of the activity time. The capacity of the baking process step is 1 / 12
batches per minute * 60 minutes per hour = 5 batches per hour.
(b)
Answer: Cooling
Feedback: Since there is only one machine at each process step, the bottleneck is the
step with the most work to do.
(c)
Answer: 3.33 batches per hour
Feedback: The process flow rate is the capacity of the bottleneck, which is the
cooling process. The process flow rate is 1 / 18 batches per minute * 60 minutes per
hour = 3.33 batches per hour.
(d)
Answer: 83 percent
Feedback: The capacity of the mixing process step is 1 / 15 batches per minute * 60
minutes per hour = 4 batches per hour. The process flow rate is 3.33 batches per
hour. The utilization is the flow rate divided by the capacity of the process step =
3.33 batches per hour / 4 batches per hour = 83%.
(e)
Answer: 15 hours to complete 50 batches.
Feedback: The time to complete X units in a full system is X * Cycle time. The cycle
time is 1 / 3.33 hours, so it takes 50 / 3.33 = 15 hours to complete 50 batches.

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7.
(a)
Answer: Office managers
Feedback: The capacity of each resource is the number of employees / activity time.
The capacity for the office managers is 2 / 4 = 0.50 loans per hour, which is less than
the capacities of either of the other two resources.
(b)
Answer: 20 loans per week
Feedback: The flow rate is the capacity of the bottleneck, which is 2 / 4 = 0.50 loans
per hour * 8 hours per day * 5 days per week = 20 loans per week.
(c)
Answer: 90 percent
Feedback: If the demand is 18 loans per week, this is the process flow rate because it
is lower than the process capacity. The utilization of the office managers’ resource is
Flow rate / Resource capacity = 18 loans per week / 20 loans per week = 90%.
(d)
Answer: 30 hours
Feedback: This is a worker-paced process, so the first loan will take 1 + 7 + 4 = 12
hours to complete. The remaining loans have a cycle time of 1 / 0.50 = 2 hours per
loan. This means that the remaining loans will take an additional 9 * 2 = 18 hours to
complete. The total time to complete 10 loans is 12 + 9 * 2 = 30 hours.
8.
Answer: 54 hours
Feedback: Step 3 is the bottleneck step of the process, so the machine-paced process
will be set at a speed of 1/2 hour per unit at each step. The first unit will take 4 * 1/2
= 2 hours to complete. The remaining 104 units will have a cycle time of 1/2 hour.
The total time required to complete a batch of 105 units is 2 + 104 * 1/2 = 54 hours.
9.
Answer: 128 minutes to serve 20 customers
Feedback: The bottleneck is the first step of the process, which means that the cycle
time for all customers other than the first one is 5 minutes. The first customer takes

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5 + 15 + 10 + 3 = 33 minutes to complete service. As a result, it takes a total of 33 +
19 * 5 = 128 minutes to serve 20 customers.
10.
(a)
Answer: 12 customers per hour
Feedback: The bottleneck is the Wash process, with a capacity of 12 cars per hour.
The flow rate is the minimum of the capacity of the bottleneck and the demand.
(b)
Answer: 60 percent
Feedback: Utilization is the flow rate divided by the capacity of the process step. If
the demand is 15 cars per hour, the flow rate is 12 cars per hour, because the flow
rate is the minimum of the capacity of the bottleneck and the demand. The capacity
of the machine that performs the Wax process is 1 / 3 * 60 = 20 cars per hour. The
utilization of this machine is 12 / 20 = 60%.
11.
(a)
Answer: 12 per hour
Feedback: The bottleneck resource is the license processing station. Each machine
can process 4 customers per hour, and there are three machines; thus, the flow rate
through this stage (and the process as a whole) is 12 customers per hour. All of the
other steps have higher capacities.
(b)
Answer: 15 per hour
Feedback: The current bottleneck is the license processing station. Each machine has
a capacity of 4 customers per hour, so adding one machine would increase the
capacity of this station to 16 customers per hour. The cashiers each have a capacity
of 7.5 customers per hour, so the capacity of this resource is only 15 customers per
hour. The cashiers will now be the bottleneck, and the process flow rate is 15
customers per hour.

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CASE
The chapter’s ‘Connection side-box’ showcases the Tesla plant. The key goal of this mini-
case is that students learn how to take a complex process as shown in the video and then
abstract this information to something simple as a process flow diagram.
The process flow diagram can take various forms / there does not exist a uniquely right
answer. We suggest a diagram such as the following:
As far as the calculations are concerned:
Cycle time: the process operates for 80 hours per week. It produces 500 cars per week. So,
the cycle time is 80 hours / 500 cars = 0.16 hours/car = 9.6 minutes/car
The flow time of the process is the 3-5 days it takes a car to journey through the process
Inventory can exist between steps and at the beginning as raw materials. However, most of
the inventory is likely to sit in each of the boxes as work in process inventory. This includes
many cars that are half assembled as well pieces of metal that are waiting to be joined
together. The total inventory is I = R*T = 100 cars per day * 4 days = 400 cars.

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CHAPTER 4
PROCESS IMPROVEMENT
CONCEPTUAL QUESTIONS
1.
Answer: A. Costs of direct labor would be 50% lower
2.
Answer: B. The labor content stays the same
3.
Answer: A. The idle time would decrease
4.
Answer: B. No
5.
Answer: A. True
6.
Answer: A. Takt time only depends on demand, not capacity. Cycle time does
depend on capacity.
7.
Answer: A. True
8.
Answer: C. The takt time decreases
9.
Answer: A. The target manpower increases
10.
Answer: B. The target manpower doubles

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11.
Answer: C. Increasing wages for production workers
12.
Answer: B. False
13.
Answer: B. False
14.
Answer: B. False
15.
Answer: A. True
16.
Answer: B. Large
Feedback: Low variable costs result in a high unit margin, so every additional
customer yields a significant contribution to profitability.
17.
Answer: A. Small
Feedback: High variable costs result in a low unit margin, which reduces the impact
of each additional customer on profitability.
18.
Answer: B. False
Feedback: Efficiency can result in higher revenue as well because the operation can
serve more customers.
PROBLEMS AND APPLICATIONS
1.
Answer: $800 per customer
Feedback: The Direct Labor cost is (8 hours × $200 per hour)/2 customers = $800
per customer.

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2.
(a)
Answer: $3.60 per unit
Feedback: Resource 1 is the bottleneck center at 6 minutes per unit. The Direct
Labor cost is (6 minutes per resource × 3 resource centers/60 minutes per hour) ×
$12 per hour = $3.60
(b)
Answer: 14 minutes per unit
Feedback: Labor content = 6 minutes Resource 1 + 3 minutes Resource 2 + 5
minutes Resource 3 = 14 minutes
(c)
Answer: 1 minute per unit
Feedback: The idle time at Resource 3 = 6 minutes Resource 1 (bottleneck) – 5
minutes Resource 3 = 1 minute idle time
(d)
Answer: 77.78 percent
Feedback: Labor Utilization = 14 demand/18 capacity = 77.78%
(e)
Answer: 3 minutes per unit
Feedback: Takt Time = 1/Demand rate = 1/(20 customers/60 minutes) = 3 minutes
(f)
Answer: 4.67 minutes per unit
Feedback: The target manpower = 14 Labor Content/3 minutes Takt Time = 4.67
3.
(a)
Answer: 50 minutes per patient
(b)
Answer: $95.83 per patient
Feedback: $1,150 per hour / 12 patients per hour = $95.83 per patient
4.
(a)
Answer: 60 minutes per customer

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Feedback: Labor content = 10 minutes Activity 1 + 10 minutes Activity 2 + 10
minutes Activity 3 + 25 minutes Activity 4 + 5 minutes Activity 5 = 60 minutes
(b)
Answer: 66.67 percent
Feedback: 60 minutes labor content / (3 employees x 30 minutes bottleneck) =
66.67%
(c)
Answer: $30 per customer
Feedback: $60 per hour / 2 customers per hour = $30 per customer
(d)
Answer: $26.67 per customer
Feedback: $80 per hour / 3 customers per hour = $26.67 per customer
(e)
Answer: $25 per customer
Feedback: $60 per hour / (60/25) customers per hour = $25 per customer
5.
(a)
Answer: 395 seconds per watch
Feedback: Labor content = 68 seconds Station A + 60 seconds Station B + 70 seconds
Station C + 58 seconds Station D + 75 seconds Station E + 64 second Station F = 395
seconds
(b)
Answer: 72 seconds per watch
Feedback: Takt Time = 1/Demand rate = 1/(50 watches/3600 seconds per hour)=
72 seconds
(c)
Answer: 5.49 workers
Feedback: 395 / 72 = 5.49
(d)
Answer: 0.0watches per hour
Feedback: There is no impact.
(e)
Answer: D. Move cosmetic inspection (step 14) to station D
6.
(a)
Answer: $1.25 per unit
Feedback: 5 * 15 / 60 = $1.25 per unit
(b)
Answer: $25 per hour

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Feedback: Revenues are $360 per hour and costs are $335 per hour so profits are
$25 per hour.
(c)
Answer: $31 per hour
Feedback: Savings = 60 units per hour x $0.10 = $6.00. $6.00 savings + $25 per hour
(see part B) = $31.00
(d)
Answer: $45 per hour
Feedback: $20 fixed cost savings + $25 (see part B) = $45 per hour.
(e)
Answer: $52.27 per hour
Feedback: It now takes 55 seconds to make each unit. 3600 seconds per hour
divided 55 seconds per unit = 65.4545 units. Revenues are $392.73 - $65.46 parts -
$75 labor -$200 fixed coast = 52.
CASE
The mini-case for this chapter is the Xootr manufacturing process.
The process flow diagrams are as follows:
We compare the two proposals assuming that there are no benefits of specialization.
Proposal Specialized One worker does it all
Number of workers 6 6
Wages per hour 6*12 6*12
Processing times 6.5., 6.5, 5.5, 5.5, 4, 4 32
Bottleneck First resource First resource

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Capacity 1/6.5 units per minute 6/32 units per minute
Cost of direct labor 72 / (60/6.5) 72 / (6/32)
Idle time 0, 0, 1, 1, 2.5, 2,5 0
Labor content 32 minutes per unit 32 minutes per unit
Labor utilization =32/(32+7) 1
Variables that might differ: the question is if it would be possible to cut the processing
times reflecting specialization gains in the first proposal. Also, the first proposal could be
improved if the line could be better balanced

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12.
A. True
13.
A. True
14.
B. False
15.
D. Scrap is a special case of rework in which flow units have to repeat all resources
in the process up to the defect.
16.
A. True
PROBLEMS AND APPLICATIONS
1.
(a)
Answer: 50 per week
(b)
Answer: 10 per week
(c)
Answer: 40 per week
Feedback: We use the first two steps from Figure SUM1.
Step 1: Compute the demand matrix
(Group 1) (Group 2)
(Administrator) 0.2 * 50 0.8 * 50
D = (Senior ac.) 0.2 * 50 0
(Junior ac.) 0 0.8 * 50

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Step 2: Compute the total demand rates, which are 50 per week for the
administrator, 10 for the senior accountant, and 40 for the junior accountant.
2.
(a)
Answer: Administrator
Feedback: We continue with Step 3 in Figure SUM1.
Step 3: We compute the capacity levels as follows:
Administrator: 1/20 units / minute = 3 units per hour = 120 units per week
Senior accountant: 1/40 units / minute = 1.5 units per hour = 60 units per week
Junior accountant: 1/15 units / minute = 4 units per hour = 160 units per week
Step 4: The levels of implied utilization are:
Administrator: 50 units per week / 120 units per week = 0.4166
Senior accountant: 10 units per week / 60 units per week = 0.1667
Junior accountant: 40 units per week / 160 units per week = 0.25
So the administrator is the bottleneck.
(b)
Answer: The flow rate 10 new cases per week and 40 repeat customers per
week; the capacity for new customers is 24 cases per week and for repeat
customers is 96 cases per week
Feedback: Step 5: The process is demand constrained and thus the flow rates are the
demand rates, 10 new cases per week and 40 repeat customers per week.
The capacity levels are found by dividing the demand rates by the highest implied
utilization. Thus, the capacity of this process with a 20:80 mix would be:
New customers: 10 / 0.4166 = 24 cases per week
Repeat customers: 40 / 0.4166 = 96 cases per week
3.
(a)
Answer: The written exam
Feedback: We follow the 4-step process outlined in Figure SUM2.
Step 1: We find the demand matrix by starting with one good unit (a student that
passes). Given the 40% failure rate, we need 1 / 0.6 = 1.67 students to take the road

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exam to get one succeed. In the same way, we compute that we need 1.667/ 0.85 =
1.96 students to take the written exam, and 1.96 / 0.9 = 2.18 students to show up. So
the demand matrix is:
(ID) (2.18)
D = (Written) (1.96)
(Road) (1.67)
Step 2: The capacity levels are simply computed as the number of workers divided
by the processing times:
Capacity(ID) = 4/5 units / minute = 384 units per day
Capacity(Written) = 2/3 units / minute = 320 units per day
Capacity(Road) = 15/20 units / minute = 360 units per day
Step 3: Compute the levels of implied utilization
IU(ID) = 2.18 / 0.8 = 2.72
IU(Written) = 1.96 / 0.67 = 2.94
IU(Road) = 1.67 / 0.75 = 2.22
So the bottleneck is at the written exam.
(b)
Answer: 163 good units per day
Feedback: Step 4: Find the capacity of the process in terms of good units by dividing
1 good unit of output by the highest implied utilization:
Capacity(ID) = 1 / 2.94 = 0.34 good units per minute = 163.2 good units per day
4. We use the 5-step process outlined in Figure SUM3.
(a)
Answer: Resource 3
Feedback: Step 1: Compute the work-load matrix
(Type A) (Type B) (Type C)
(Resource 1) (40 * 5 50 * 5 60 * 5)
(Resource 2) (40 * 4 50 * 4 60 * 5)
WL = (Resource 3) (40 * 15 0 0)
(Resource 4) (0 50 * 3 50 * 3)
(Resource 5) (40 * 6 50 * 6 40 * 4)
Step 2: Add up the work-loads for each resource:

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5
Resource 1: 750 minutes per day
Resource 2: 660 minutes per day
Resource 3: 600 minutes per day
Resource 4: 300 minutes per day
Resource 5: 700 minutes per day
Step 3: Compute the available time per day at each resource
Resource 1: 2 * 480 = 960 minutes per day
Resource 2: 2 * 480 = 960 minutes per day
Resource 3: 1 * 480 = 480 minutes per day
Resource 4: 1 * 480 = 480 minutes per day
Resource 5: 2 * 480 = 960 minutes per day
Step 4: Compute the implied utilization levels as demand rate in minutes of work
divided by the available time in minutes of work:
Resource 1: 750 minutes per day / 960 minutes per day = 0.78
Resource 2: 660 minutes per day / 960 minutes per day = 0.69
Resource 3: 600 minutes per day / 480 minutes per day = 1.25
Resource 4: 300 minutes per day / 480 minutes per day = 0.625
Resource 5: 700 minutes per day / 960 minutes per day = 0.73
Resource 3 is the bottleneck because it has the highest implied utilization.
(b)
Answer: The flow rate for A is 32 units per day; B is 40 units per day; and C is
48 units per day.
Feedback: Step 5: The process is capacity constrained. So we have to divide all flows
by 1.25:
Flow A = 40 / 1.25 = 32 units per day
Flow B = 50 / 1.25 = 40 units per day
Flow C = 60 / 1.25 = 48 units per day
5. We use the framework outlined in Figure SUM4.
(a)
Answer: Step 3
Feedback: Step 1: We compute the work-load matrix
Good Rework
1 (0.7 * 5 0.3 * [5 + 5])
2 (0.7 * 6 0.3 * [6 + 6])
WL = 3 (0.7 * 3 0.3 * [3 + 3])
4 (0.7 * 4 0.3 * 4)

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Operations Management, (Mcgraw-hill Education Operations and Decision Sciences) 1st Edition Solution Manual

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