代写BUS 305 Operations Management调试R语言程序

BUS 305 Operations Management

Take-Home Exercise

Question 1 (20 marks)

A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $9,200 per month and variable costs of 70 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents.

a.  What volume per month is required in order to break even? (4 marks)

b.  What profit would be realized on a monthly volume of 61,000 units? 87,000 units? (4 marks)

c.  What volume is needed to obtain a profit of $16,000 per month? (4 marks)

d.  What volume is needed to provide a revenue of $23,000 per month? (4 marks)

e.  Plot the total cost and total revenue lines. (4 marks)

Question 2 (20 marks)

The following diagram describes a service process where customers go through either of the two parallel three-step processes and then merge into a single line for two final steps. Capacities of each step are shown on the diagram.

a. What is the current capacity of the entire system? (10 marks)

b. If you could increase the capacity of only one operation through process improvement efforts, which operation would you select, how much additional capacity would you strive for, and what would the resulting capacity of the process be? (10 marks)

Question 3 (20 marks)

A computer repair shop had received a number of complaints on the length of time it took to make repairs. The manager responded by increasing the repair staff by 10 percent. Complaints on repair time quickly decreased, but then complaints on the cost of repairs suddenly increased. Oddly enough, when repair costs were analyzed, the manager found that the average cost of repair had actually decreased relative to what it was before the increase in staff.

a. What are some possible explanations for the complaints, and what actions might the manager contemplate? (6 marks)

b. As a manager, how would you deal with the possibility that customer satisfaction does not always lead to customer retention? (8 marks)

c. What quality-related trade-offs might there be between having a single large, centralized produce-processing facility and having many small, decentralized produce-processing facilities? (6 marks)

Question 4 (20 marks)

The inventory manager at Fridendly Shop (FS) wants to determine an ABC classification for the following items:

Question 5 (20 marks)

Garden Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30% of cost and ordering costs are $20 per order. The manager has been using an order size of 1,500 pots.

a. What additional annual cost is the shop incurring by staying with this order size? (15 marks)

b. Other than cost savings, what benefit would using the optimal order quantity yield? (5 marks)