Answers to Book Exercises

CHAPTER 1 1.1 (a) 3.0 boxes/hour (b) 3.125 boxes/hour (c) 4.166% 1.2 1.3 1.4 2 valves/hr Sundry articles available Varies by site and source

1.5 (a) 20 pkgs/hr (b) 26.6 pkgs/hr (c) 33.0% 1.6 Productivity of labor: Productivity of resin: 9.3% 11.1%

Productivity of energy: -10.0% 1.7 7.8% improvement

1.8 (a) .0096 rugs/labor-dollar (b) .00787 rugs/dollar

1.9 (a) 2.5 tires/hr (b) 0.025 tires/dollar (c) 2.56% increase 1.10 Productivity of capital dropped (- 20%), labor (7.7%) and energy (10%) productivity increased .000375 autos per dollar of inputs Before: 25 boxes/hr After: 27.08 boxes/hr Increase: 8.3%

1.11 1.12 1.13 1.14 1.15

4 workers need to be added Labor change: 0.0% Old process: 0.244 Investment change: 22.5% New process: 0.248 Percentage change: 1.6%

CHAPTER 3

3.1 3.2 Here are some detailed activities for the first two activities for Jacobs WBS: 1.11 Set initial goals for fund-raising. 1.12 Set strategy, including identifying sources and solicitation place. 1.13 Raise the funds 1.21 Identify voters concerns. 1.22 Analyze competitors voting record. 1.23 Establish position on issues 3.3 Critical path is A-C-F-G-I. Time = 21 days, This is an AON network. 3.4 A-C-F-G-I is critical path; 21 days. This is an AOA network. 3.5 Paths are: J-L-O, J-M-P, J-M-N-O, K-P, and K-N-O. Durations are 23, 18, 22, 13, and 17. J-L-O, is the critical path; its duration is 23. 3.6 (a) (b) B-D-E-G (c) 26 days (d) A-13, B-0, C-11, D-0, E-0, F-11, G-0 3.7 (a) (b) A-C-D-F-G (c) 28.7 hours 3.8 (a) (a) 150 hours, with path A-C-E-F 3.9 A-C-E-F, 150 3.10 3.11 Critical path = B,E,G. Total project completion time is 21 days. 3.12 (a) (b) A,B,E,G,I is the critical path (c) 34 wk.

3.13 For A: 15, 1.33, For B: 32, 2.33, For C: 18, 0, For D: 13.17, 1.83, For E: 18.17, 0.5, For F: 19, 1 3.14 For A: 5.83,0.69, For B 3.67, 0.11, For C:2.00, 0.11, For D:7.00,0.11, For E:4.00, 0.44, For F:10.00, 1.78, For G:2.17, 0.25, For H:6.00, 1.00, For I:11.00, 0.11, For J:16.33, 1.00, For K:7.33,1.78 3.15 the critical path is given by activities: C,D,E,F,H,K. Average completion time = 36.33 days 3.16 .946 3.17 (a) (b) (c) (d) (e) (f) 12 weeks 1.78 A-C-F-H-J-K 40.17 weeks 10.03 9.6% chance of completion before week 36. Z = -1.32

3.18 Critical path currently is C-E for 12 days. $1,100 to crash by 4 days. Watch for parallel critical paths as you crash. 3.19 (a) A (b) A cannot supply a second reduction, so the next best choice is B, which adds $900 (c) The total for both days is $1500 3.20 (a) (b) (c) (d) 16(A,D,G) $12,300 D; 1wk. for $75 7wk.; $1600

3.21 (a) A; 10, 0.11. B; 10, 4. C; 10,0.11. D; 8,1. (b) A-C with a mean completion time of 20 wks. B-D with a mean completion time of 18 wks. (c) Variance of A-C = 0.22, Variance of B-D = 5 (d) 1 (e) 0.963 (f) The critical path has a relatively small variance and will almost certainly be finished in 22 weeks or less. Path B-D has a relatively high variance. Due to this, the probability B-D is finished in 22 weeks or less is only about 0.96. Since the

project is not finished until all activities are finished, the probability that the project will be finished in 22 weeks or less is not 1 but is approximately 0.96. 3.22 (a) The critical path is given by the activities: A,C,E,H,I,K,M,N. Completion time is 50 weeks. (b) 82.1% 3.23 (a) Completion time = 32.05, Project standard deviation = 1.00 (b) The changes do not have any impact on the critical path or the completion time. 3.24 (a) (b) (c) (d) .0228 .3085 .8413 .9772

3.25 (a) Project completion time = 14 weeks (b) Total crash cost = $400 additional (c) Additional crashing cost = $1,550. 3.26 (a) (b) Critical path is A,B,J,K,L,M,R,S,T,U for 18 days. (c) No, No, No (d) Reallocating workers not involved with the critical path activities to activities along the critical path will reduce the critical path length. 3.27 (a) 0.97725 (b) 0.34458 (c) 46.4
CHAPTER 4 4.1 (a) 374.33 pints (b) 372.90 pints (c) 374.26 pints 4.2 (a) none obvious (b) 7, 7.67, 9, 10, 11, 11, 11.33, 11, 9 (c) 6.4, 7.8, 11, 9.6, 10.9, 12.2, 10.5, 10.6, 8.4 (d) The three year moving appears to give better results

4.3

Exponential smoothing is better because its smoothens the data

4.4 (a) 41.6 (b) 42.3 (c) Banking industrys seasonality 4.5 (a) 3,750 ml (b) 100 (c) 140 (d) 3,663 miles 4.6 (b) Nave = 23 (c) 140 4.7 4.8 (a) (b) (c) (d) (e) VP of operations has presenting better forecasts 91.3 89 MAD = 2.7 MSE = 13.35 MAPE = 2.99% 3 mo moving = 21.33 6 mo weighted = 20.6 trend = 20.67

4.9(c) MAD [two-month moving average] = 0.075 MAD [three-month moving average] = 0.088 (d) 0.72 for = .1 0.70 for = .3 0.67 for = .5; = .5 is preferable 4.10 (a) 4.67, 5.00, 6.33, 7.67, 8.33, 8.00, 9.33, 11.67, 13.7 (b) 4.50, 5.00, 7.25, 7.75, 8.00, 8.25, 10.00, 12.25, 14.0 4.11 5, 4.7, 5.1, 4.8, 4.8, 6.4, 6.9, 6.9, 7.5, 8.9, 10.4, 11.8

4.12

3 yr Moving Average MAD = 2.54 3 yr Weighted Moving Average MAD = 2.31 Exponential Smoothing MAD = 2.4 4.13 (a) = .6 Forecast 56.3 = .9 Forecast 57.8 (b) 55.3 (c) 61.8 4.14 = .6 Exponential Smoothing MAD = 5.06 = .9 Exponential Smoothing MAD = 3.7 3 yr Moving Average MAD = 6.2 Trend Projection MAD = 0.64 2003 Sales = 555.0

4.15

4.16 4.17

y = 421 + 33.6x When x = 6, y = 622.8 = .6 Forecast = 565.6; MAD= 51.8 = .9 Forecast 581.4; MAD = 38.1 = .9 gives the most accurate forecast MAD ( = .3) = 74.6 MAD 3 yr moving average = 67.0 MAD (trend) = 5.6 Adjusted forecast = 68.60 August Forecast = $71,303; MSE = 12.7 for = .8 vs. MSE = 18.87 for = .2 F5 = 19.91 F6 = 22.51 T5 = 2.23 T6 = 2.38 FIT5 = 22.14 FIT6 = 24.89

4.18

4.19 4.20 4.21

4.22 4.23

Confirm that you match numbers in table 4.1 MAD for the mangers technique is 14.5, while MAD for the nave forecast is only 12.25. MAPEs are 15.29% and 12.12% respectively.

4.24 (a) Observations do not form a straight line but do cluster about one. (b) y = 1 + 1x (c) 10 drums 4.25 4.26 4.27 4.28 4.29 y = 5 + 20x. The forecast for May (x = 5) is y = 5 + 20(5) = 105 270, 390, 189, 351 for fall, winter, spring and summer respectively 0.903, 0.791, 0.927, 1.033, 1.422, 1.478, 0.445 Index is 0.709, winter; 1.037, spring; 1.553, summer; 0.700, fall 96.344, winter; 132.946, spring; 169.806, summer; 85.204, fall (b) 380 (c) 423

4.30 (a) 337

4.31 (a) y = 21,748.33 1,080x (b) The problem with this line is that it shows a decreasing trend when sales have been rising each year (c) Two separate forecast lines should be generated- one for spring/summer and one for fall/winter- or the analysis can be performed as a multiple regression. 4.32 (a) y = 50 + 18x (b) $410

4.33 (a) y = 126 + 18x; number of transistors (in millions) = 234 4.34 (a) 28 (b) 43 (c) 58

4.35 (a) y = 13,473 + 37.65 (1860) = 83,502 (b) The predicted selling price is $ 83,502, but this is the average price for a house of this size. There are other factors besides square footage that will impact the selling price of a house. (c) Some other quantitative variables would be the age of the house, number of bedrooms, size of the lot, and size of the garage, etc. (d) Coefficient of determination = (0.63)2 = 0.397. This means that only about 39.7% of the variability in sales price of a house is explained by this regression model that only includes square footage as the explanatory variable 4.36 (a) $452.50 (b) Request is higher than predicted, so seek additional documentation. (c) Include other variables (such as destination cost index) to try to increase r and r2 4.37 See, class discussion. (b) 2.719 (c) r = .966; r2 = .934 X = 12, Y = 69.1 patients

4.38 (a) y = -.158 + .1308x 4.39 y = 29.76 + 3.28x 4.40

X = 11, Y = 65.8 patients

131.2 ~~ 72.7 patients; 90.6 ~~50.6 patients

4.41 (a) Points scatter around a straight line (b) Y = 0.511 + 0.159x (c) Y = 2.101 or 2,101,000 persons 4.42 (a) They need more data and must be able to address seasonal and trend factors (b) Try to create your own nave model because seasonality is strong (c) Compute and graph your own forecast 4.43 (a) 51.4 (b) 57.6 (c) Smoothing constant = .6 seems to do a better job

4.44 Trend adjustment doesnt appear to give any significant improvement 4.45 Y = 43.3948 + .746x Year 11 = 140.3748 Year 12 = 138.8828

4.46 (a) y = 1.03 + .0034x, r2 = .479 (b) For x =350; Y = 2.22 (c) For x = 800; Y = 3.75 4.47 Y = 8.3363 + 0.7996 x; Expected Sales = 60,300 units 4.48 (a) Sales (x) = -9.349 + .1121 (contracts) (b) r = .8963; Sxy = 1.32; r2 = .8034

CHAPTER 5

5.13 EMV of Elegant: 3500 EMV of Deluxe: 4000 EMV of do nothing: 0 Produce the deluxe version, since EMV is highest.

5.15

EMV of Internal Engineers: $114,200 EMV of External Engineers: $110,200 EMV of Joint Design: $109,800

Joint design is the best decision, since EMV is lowest.

CHAPTER 6 (SUPPLEMENT)

6.1 6.2 6.3

UCLx = UCLx = UCLx = UCLR =

14.05 52.31 58.496 3.4272 46.966 4.008 706.848 10.662 3.728 2.236 156.54 7.96 10.42 1.187

LCLx = 13.95 LCLx = 47.69 LCLx = 57.004 LCLR = 0.135 LCLx = 45.034 LCLR = 0.0 LCLx = 703.152 LCLR = 1.338 LCLx = 2.236 LCLR = 0.0 LCLx = 153.78 LCLR = 1.00 LCLx = 9.66 LCLR = 0

6.4

UCLx = UCLR =

6.5

UCLx = UCLR =

6.6

UCLx = UCLR =

6.7

UCLx = UCLR =

6.8 (a) UCLx = UCLR = (b)Yes

(c) Increase sample size

6.9

UCLx = UCLR =

6.56 1.141

LCLx = 5.84 LCLR = 0

6.10 (a)

1.36, 0.61 LCLx = 8.17 LCLx = 8.10

(b) Using X, UCLx = 11.83 Using A2, UCLx = 11.90 (c) UCLR = 6.11 UCLx = UCLR = 6.12 UCLx = UCLR = 6.98

LCLR = 0.0

(d) Yes. LCLx = 9.9939 LCLR = 0 LCLx = 46.692 LCLR = .223

10.0071 0.0243 47.308 1.777

Averages are increasing 6.13 p = .01215 UCLx = 0.0515 LCLx = -0.0215 or 0

6.14

UCL 0.062 0.099 0.132 0.161 0.190

6.15 (a) (b) 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23

LCL 0 0 0 0 0.01
UCLP = .126 LCLP = 0 The process is out of control on the third day .0313 0.0597 .0901 0.2881 .0581 13.35 33.4 62.1806 LCLP = 0 LCLP = 0.0103 LCLP = 0 LCLP = 0.0605 LCLP = 0 LCLC = -1.35(or 0) LCLC = 7 (or 6.6) LCLC = 23.0194

UCLP = UCLP = UCLP = UCLP = UCLP = UCLC = UCLC = UCLC =

6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33

UCLC = UCLp =

26.063 0.218

LCLC = 3.137 LCLp = 0

CP = 1.0; the process is barely capable CP = 1.33 Cpk = 0.67

Cpk = 1.125; the process is centered and will produce with in tolerance LSL = 2.9mm, USL = 3.1mm Cpk = .166 Cpk = 1.059 AOQ = 2.2% AOQ = 2.0% Cpk = 1.67

6.34 (a) Yes, the process is in control for both x and R charts (b) They support Wests claim. But variance from the mean needs to be reduced and controlled.

CHAPTER 7 7.5 TC: GPE=$4,600,000 FMS=$4,400,000 DM=$4,400,000

Both FMS and DM with lowest total cost.

7.7 Based on 7.6 solution: at 75,000 units use GPE at 275,000 units use FMS at 375,000 units use DM 7.9 4 X = 15,000 + 1.82 X Therefore, X = 6,881 units. 7.11 Since, crossover point in room nights is X=6,000 and she expects to rent

18,250 (50x365) room nights. Therefore, outsourcing will cost more for more than 6000 room nights.
CHAPTER 7 (SUPPLEMENT)

7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8

85.7% 69.2% (6,500) * (.88) = 69.2% 88.9% 500 81 chairs 304 hrs 65,520 18.54 19.16

7.9 [a] 2003 Capacity needs = 2005 Capacity needs =

2009 Capacity needs =

20.41 = 7.9

[b] 2007 Requirements = 19.79 * 1000 = 19,790; 19,790/2,500 7.10 [a] 4,590 in excess capacity 7.11 Utilization = 72.5% 6,250 units $150,000 [b] 2,090 excess capacity Efficiency = 96.7% [b] 7,000 units [b] $160,000

7.12 [a] 7.13 [a] 7.14

X = 10,000

7.15 [a] 1,667 pizzas [b] 2,353 pizzas [c] Oven A is slightly more profitable 7.16 [a] 12,500 units [b] $100,000 [c] $350,000 7.17 7.18 375,000 copies / $18,750 $750,000 / 25,000 units 32,500 units [b] $975,000 Profit B = $0 ; option A Profit B = $2,500 ; option B [d] 13,333 pizzas

7.19 [a] 7.20 7.21

Profit A = $1,000 Profit A = $1,000

7.22 [a] 50,000 bags [b] $125,000 [c] 60,000 bags [d] $150,000 [e] $7,500 [f] 0.0 breakeven [g] 75,000 [h] Below 75,000 bags manual process is preferred; above 75,000 bags mechanized process preferred 7.23[a] $50,000 [b] 20,000 units [c] At a volume of 15,000 current process should be used 7.24 [a] $7,584.83 7.25 [a] $11,801.24 7.26 [a] $500 7.28 7.29 7.30 7.31 7.32 7.33 [b] 9 [b] $20,860.25 [b] 140.9 servings Small line payoff = $66,666

Large line payoff = $100,000 $4,590 $20,280 $1,544.4 $1,764 NPV of Machine A = -$22,988

NPV of Machine B = -$27,026;

A should be recommended 7.34 [a] NPV of the three small ovens = -$8,511; NPV of the two large ovens = -$5,855; Purchase two large ovens [b] ovens are of equal quality & equivalent production capacity [c] Future interest rates are known and payments are made at the end of each time period 7.35 P.Value of A = $6,084 P.Value of B = $7,770 P.Value of C = $8,334 Investment C has the highest NPV
CHAPTER 8

8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8

China is most economical, assuming transport costs are not included China is most favorable, but Montana is almost tied Select Thai or U.S. Company If India had a tariff of 30%, then making the items in India is $0.05 less than importing them from anywhere. Maitland = 53.5, Crestwood = 69.5, Northside Mall = 58.5; Crestwood is best Atlanta = 53, Charlotte = 60; Charlotte is better Philadelphia = 73.0, New York = 71.25, ILA should locate in Philadelphia Present location = 49, Newbury = 50.50, Hyde Park = 54.5; Hyde Park represents the best alternative. Carthage: 87.5 Denver: 76.0

8.9[a] The weighted averages are: Akron: 81.5 Biloxi: 80.0 [b] Carthage is preferred [c] The new scores are: Akron: 80.5 Biloxi: 79.0 8.10 8.11 8.12 8.13 8.14

Carthage: 85.5

Denver: 74.0

Location A = 1210; Location B = 1310; Location C = 1530; Location C should be recommended Taiwan = 2.6, Thailand = 3.1, Singapore = 2.6; Thailand rates high

Great Britain at 36 be selected If English is not an issue, then Great Britain, Holland, & Belgium should be all considered further. Italy at 3.45 is highest

8.15[a] Chicago has the largest rating with 33, followed by Milwaukee by 32.5 [b]with a cutoff of 5, Chicago is unacceptable. Only Milwaukee has scores of 5 or higher on all factors 8.16[a] Site 1: <= 125 units, Site 2: 125 233 units, Site 3: >233 units [b] For 200 units, site 2 is optimal 8.17 8.18 Q= 33,333 Local supplier is best from 0 to 4,800 units. A is best from 4,800 to 8,000 units; B is best from 8,000 to 13,333 units; and C is best above 13,333 units

8.19[a] Cross is over at 120 units [b], [c] McKinney is preferable beyond 120 units, Bonham below 120 units [d] Both Bonham (53 units) & McKinney (58 units) are beyond breakeven 8.20 8.21 8.22 8.23 8.24 The proposed new hub should be near (5.15, 7.31) The distance minimizing location is at (5.95, 4.35) The new school should be near (6.23, 6.08) the center of gravity is (66.69, 30.22) 5.6 East & 4.8 North is the best location

8.25[a] Top 3 cities are Lyon: 3970, Bonn: 3915, Berlin: 3665 [b]Top 3 cities are Lyon: 3730, Bonn: 3585, Berlin: 3555 [c] Top 3 cities are Berlin: 3840, Bonn: 3810, Lyon: 3730

CHAPTER 9

9.1[a] Load x distance = 90,000

B [b] Improved layout = Load x distance = 78,000 A C D

9.2 9.3[a]

Benders to room (area) 1; Materials to 2; Welders to 3; Drills to 4; Grinder to 5; and Lathes to 6; Trips x Distance = 13,000 ft
B A C D D A F F D E C F B B E C E

= 47,900 = 44,400 = 43,880

[b] 9.4

Layout # 1, distance = 600 with rooms fixed Layout # 2, distance = 602 with rooms fixed

9.5 9.6

Layout # 3, distance = 560 with rooms fixed Layout # 4, distance = 609 Layout # 5, distance = 478 [c] 4 stations [e] Efficiency = 80%

9.7[b] Cycle time = 30 sec. per unit 9.8

Cycle time = 9.6 min; 8 workstations with 63.8% efficiency is possible

9.9 [b] Station 1 gets A, G, and B, has 0.5 minutes left over. Station 2 gets C, D & E with no time left over. Station 3 gets F, H, I, & J and has 0.5 minutes left over. Improvements in efficiency seem impossible. [c] if stations 1 and 3 each had 0.5 minutes more work to do, the line would be 100% efficient. 9.10 Cycle time = 6.67 min. /unit. Multiple solutions with 5 stations Here is a sample: A, F, G to station 1; B, C to station 2; D, E to station 3; H to station 4; and I, J to station 5 Efficiency = 78%. Multiple layouts with this efficiency exist.

9.11

9.12[a] Minimum no. of work stations = 2.6 (or 3) [b]Efficiency = 86.7% [c] Cycle time = 6.67min/unit with 400 min./day; minimum no. of workstations = 1.95 (or 2) 9.13 9.14 9.15 9.16 Min. cycle time = 3 mts, output = 125 Cycle time = .5 min. /bottle. Possible assignments with 4 workstations yields efficiency = 90% Cycle time = 0.333 mts/unit, Minimum number of stations = 5.45 or 6 workstations Minimum (theoretical) = 4 stations. Efficiency = 80% with 5 stations. Several assignments with 5 are possible [c] 144 units per day [g] 83.33% [d] 5 stations [e] 83.33%

9.17[b] 15 min

[f]10 min./cycle 9.18

There are three alternatives each with efficiency = 86.67%; 160 units can be produced 9.19[a] The throughput is 3.75 patients per hour [b] 16 mts [c]If one more MD and one more paramedic are added, it is possible to increase the throughput to at least five persons per hr. bottle necks would be the two stations psychological exam and eye/measurements, taking 12 mts 9.20[a] Longest operating time, most following tasks, and ranked position

weight each requires 12 workstations and gives efficiencies of 84.61% [b]Ranked positional weight, with 11 workstations, and efficiency = 90.1%

CHAPTER 12

12.1 12.2 12.3 12.4

A item is 33CP; items that should no be strictly controlled are XX1, B66, 3CPO, R2D2 & RMS A items are G2 and F3; B items are A2, C7, and D1; all others C The dollar usage percentages dont exactly match the predictions of ABC analysis. Ex: A items only account for 71% of the total, rather than 80% 108 items [b] $988 [c] $987

12.5[a] EOQ = 494 units 12.6 12.7 600 units S = $30

12.8[a] 80 units 12.9 [a] EOQ = 300 units 12.10 2,100 units 12.11 ROP = 167 units

[b] 73 units [b] $3,750 [c] $3,750 [d] 400 units

12.12[a] 149 valves [b] 74.5 valves [e] $1341.64 [f] 80 valves

[c] 27 orders

[d] 91/4 days [c] 10 orders/year; [f] 10

12.13[a] 250 brackets per order [b] 125 units; $187.50 $187.50 [d] $375/year [e] 25 days

12.14[a] Order quantity variations have limited impact on total cost. [b] EOQ = 50 12.15[a] EOQ = 100 units 12.16 2,309 units 12.17[a] 4,472 lights per run [b] $134.16 [c] $134.16 [d]$12,268.32/year [b] 2.5 orders per year [c] 50 units [d] $45

12.18[a] 1,217 units [b] 1,095 = max inventory [c] 8.22 prod. runs [d] $657.30 12.19 Total costs at this quantity are: $31,500 At the quantity discount: $31,020 The quantity discount will save $480 on this item. 12.20 $51,000 without discount; $49,912.50 with discount

12.21 The optimal strategy is to order 300 units at a total cost of $543,517 12.22 Order in quantities of 100. Total cost = $752.63 12.23 TC of 667 tires order: $362,400 per year TC of 1000 tires order: $342,500 per year 12.24[a] EOQ = 410 [b] Vendor Allen has slightly lower cost [c] Optimal order quantity = 1,000 @ total cost of $128,920 12.25 EOQ = 120 12.26[a] EOQ (A) = 336; EOQ (B) = 335 [c] At 1,200 lb., total cost = $161,275 12.27[a] Safety stock = 9 [b] Order 1,200 from Vendor B [d] Storage space and perishability

[b] 69 BX-5 bandages

12.28 [a] Z = 1.88 [b] Safety stock = Z = 1.88(5) = 9.4 drives [c] ROP = 59.4 drives 12.29 The safety stock that minimizes total incremental cost is 100 units. The reorder point then becomes 200 units + 100 units or, 300 units 12.30 150 sets 12.31 Safety stock = 30 units; ROP = 90 units 12.32 EOQ = 442 12.33[a] 32 [b] 2 [c] 20($120) = $2,400 [d] $375/year [e] $10,800

[f] $1,820 12.34 17 poles

CHAPTER 13

13.1 Total cost = $54,560 13.2 Cost = $53,320, No, plan 2 is better 13.3 Total extra cost = $140,000 13.4 Cost = $214,000 for plan B 13.5(a) Plan C should be recommended 13.6 Plan D; $122,000; plan E is $129,000 13.7(a) Total Extra Cost = $960 (b) Extra Total Cost = $37,920

13.8 Each answer you develop will differ 13.9(a)Total Extra Cost = $168,000 (b) Total Extra Cost = $54,000 13.10 Plan C, $92,000; plan D, $82,300 assuming initial inventory = 0 13.11 A Level plan will cost $180,000, while a Chase plan will cost $214,000 13.12 (a) (b) (c) (d) (e) Cost is $314,000 Cost is $329,000(but an alternative approach yields $259,000). Cost is $222,000 Plan C Plan C with the lowest cost and steady employment

13.13 Total Cost = $11,790 13.14 $1,186,810 13.15 $627,100 13.16 $100,750 13.17 (a) (b) (c) (d) Optimal Cost = $2,641 The cost of the optimal plan is $2,641. Alternate optimal solutions are possible. All regular time is used 40 units are backordered and produced on overtime in quarter 3 at a cost of $.50 each for a cost of $20.

13.18 $90,850 13.19 (a) (b) (c) (d) Total Cost = $2,608,300 Total Cost = $2,585,100, or about $50,000 savings Total Cost = $2,627,200, there is no change in the solution other than higher cost Total Cost = $2,589,000, there is no change in the solution other than higher cost

13.20 (a) Cost using O.T. and Abernathy = $198,125 (b) Cost using O.T. and Abernathy = $198,125 (c) A case could be made for either position 13.21

(a) Total cost = $208,750 (b) With the increase in business, 5 accountants appear necessary. There is still a need for overtime during the tax season. What Cohen needs to do is find additional accounting activities that his staff can work on during the off-peak season 13.22 Current model = $9,200 in sales; proposed model yields $9,350, which is only slightly better.
CHAPTER 15

15.3 Optimal assignment: taxi at post 1 to customer C, taxi at post 2 to customer B, taxi at post 3 to customer A, taxi at post 4 to customer D. Total distance traveled = 18 miles. 15.4 (a) 1-D, 2-A, 3-C, 4-B (b) 40 15.5 C53 at plant 1, C81 at plant 3, D5 at plant 4, D44 at plant 2 15.6 A-61 to 4; A-60 to 1; A-53 to 3; A-56 to 5; A-52 to 2; A-59 to 6; 150hr. 15.7 Squad 1 to case C, Squad 2 to case D, Squad 3 to case B, Squad 4 to case A, Squad 5 to case E, total person-days projected = 28 days 15.8 1-2 P.M. on A;2-3 P.M. on C; 3-4 P.M. on B; 4-5 P.M. on Independent;75.5 rating 15.9 Fisher-Finance, Golhar-economics, Hug-statistics, Rustagi-management 15.10 (a) (b) (c) (d) (e) A,B,C,D,E B,A,D,E,C E,D,A,B,C C,B,A,D,E Spt is best

15.11 C,B,A,D,E 15.12 (a) (b) (c) (d) (e) (f) A,B,C,D B,C,A,D D,A,C,B C,B,D,A D,C,A,B SPT is best on all measures.

15.13 (a) (b) (c) (d) (e) 15.14 (a) (b) (c) (d) (e)

The best flowtime is SPT The best utilization is SPT The best lateness is EDD Cases can be made for SPT, EDD, LPT scores poorly on all three criteria A,B,C,D,E C,A,B,E,D C,B,E,A,B B,A,E,D,C EDD, then FCFS are the best on lateness; SPT on other two measures

15.15 A,B,C,E,D 15.16 1,3,4,2,5 15.17 (a,c) The jobs should be processed in the sequence V-Y-U-Z-X-W-T for a total time of 57 15.18 E,D,C,A,B,F 15.19 (a) Chiang to March 26, Ittig to April 12, Malik to February 26, Moodie to February 5, Riddle to January 3, Sower to June 9, Sweeney to September 19, Temponi to May 1, Turner to August 20, Visisch to January 27, Rating = 96 (b) Maliks ratings modified for two February flights, Rating = 92 now, Malik moves to May 1, Sweeney to February 26, Temponi to September 19, others remain the same (c) Sweeney rerated at 10 for Jqanuary. Same schedule as (b) with two exceptions: Sweeney moves to January 3 and swaps with Riddle who takes the February 26 flight: Overall rating = 93 now. (d) Strengths: relatively straightforward, rapid rescheduling, information regarding trade-offs provided. Weakness: Only as good as the initial ratings
CHAPTER 16

16.1 5 kanbans 16.2 3.75, or 4 kanbans 16.3 Size of kanban = 50, 5 kanbans 16.4 Size of kanban = 66, number of kanbans = 5.9, or 6

16.5 (a) 10 lamps (b) $1,200 (c) 20 orders/year 16.6 (a) EOQ = 10 lamps (b) 200 orders/year (c) $200 16.7 With JIT, purchase/delivery of goods immediately precedes demand. The decrease in EOQ for lamps, form 100 to 10, increases deliveries form20 to 200. With the new relationship with Special Lighting, Discount-Mart has reduced its inventory costs, a usual pattern for companies using JIT purchasing. 16.8 7.26 min. 16.9 3.67 min/setup 16.10 (a) Setup cost = $5.74 (b) Setup time = 8.61 min.
CHAPTER 17

17.1 Using figure 17.2: n =50. Average reliability of components = 0.99. Average reliability of system = 0.62. Actual reliability of the system = 0.605. 17.2 From Figure 17.2, about 13% overall reliability 17.3 2.7 breakdowns 17.4 Expected daily breakdown = 2.0, Expected cost = $100 daily 17.5 A reliability of approximately 99.33% is required of each component 17.6 (a) (b) (c) (d) 5.0% .00001026 failures/unit-hr. .08985 98.83

17.7 Overall system reliability = 99.4%

17.8 R s =.8145 17.9 Overall system reliability = .9498 or 95% 17.10 R p = .99925 17.11 0.87 17.12 (a) R p = .984 (b) Increase by 11.1% 17.13 0.649 probability of living more than one year 17.14 R = .7918 17.15 The figure suggests that there are likely to be at least three separate modes of failure; one or more causes of infant mortality, and two modes of failure which occur at a later time 17.16 (a) .972 (b) .981 17.17 There were a total of 40 breakdowns over 18 years, or an expected 2.222 breakdowns per year 17.18 System B is slightly higher at .9397. 17.19 Reliability is 0.7348.

MODULE : C C.1 [a] Total Cost: $3,120 [b] Total Cost: $2,000 [c] Total cost of NW method = $3,120; Total cost of intuitive method = $2,000 C.2 Total cost = $2,000. Multiple optimal solutions exist. Cost after second iteration = $2,640; after third iteration = $2,160. [b] Cost = $2,630

C.3[a] Cost = $2,670 C.4 C.5 C.6 C.7 C.8 C.9 C.10

Optimal cost = $2,750 X- A = 50; X- C = 50; Y- B = 50; Z- B = 30; Z C = 20; Z Dummy = 25 Optimal cost = $14,700; H D = 800; H A = 50; P A = 250 P D = 200 P Du = 200; M A = 300 A- 1, 10; B- 1, 30; C-2,60; A-3, 40; C-3, 15;; Cost = $1,775 Optimal cost = $2,020; B1 H1 = 50; B2 H1 = 10, B2 H2 = 70; B3 H1 = 30, B3 H3 = 40, B3 H4 = 50 Houston, $19,500 Cost = $116,160 Total cost = $505

C.11[a] The initial solution using the northwest corner rule shows that degeneracy exists. The number of rows plus the number of columns minus 1 = 4+3-1 = 6. [b] A zero will have to be placed in a square [c] Cost = $1,036 C.12 C.13 C.14 C.15 C.16 Initial cost = $260, Improved solution = $255, Final solution = $230 Philadelphia total cost = $43,000; Seattle total cost = $36,125 F1 W1, 1000; F1 W4, 500; F2 W2, 2,000; F2- W3, 500; F3 W3, 1,500; F3 W4, 700; Cost = $39,300 Optimal cost using East St. Louis = $17,400; Optimal cost using St. Louis = 17,250 $60,900 with East St. Louis; $62,250 with St. Louis

C.17[a] Mobile: $8,100 Tampa: $9,300 Huntsville: $8,400 [b] Mobile: $7,100 Tampa: $8,300 Huntsville: $7,400

[c] Mobile: $7,600 Tampa: $8,800 Huntsville: $7,900 MODULE : D D.1 [a] 0.9 persons [b] 1.5 persons D.2 [a] 44% [b] .36 min D.3 D.4 [a] .5 D.5 [a] 21% D.6 [a] .667 D.7 [a] 1/6 hrs [f] 4/5 D.8 [a] .375 [b] .5 [c] 1 [b] 79% [b] .667 min [b] 4 cars [g] 0.128 [d] .5 [e] .05 hr. [c] 1 hour [c] 1.33 [d] 2/15 hrs [e] 1/5 [f] .1 hr [c] 18 min [d] 30 min [e] 60%

[c] .8 people

[d] .53 min

[e] 1.2 min

[c] 3.2 cars [c] .225

[b] 1.6 hr

[d] 0.141, 0.053, 0.020, 0.007

D.9 [a] 0.1333 hrs [b] 1.333 [c] 1/5 hrs [d] 2 [e] 1/3 [f] (a) 0.0083 hrs (b) 0.0833 (c) 0.075 hrs (d) 0.75 (e) 0.5 D.10 [a] 2.25 [b] .75 [c] .857 min [d] .64 min [b] 12 min [c] 4 min [d] .54 [c] $90.10/hr [c] 10 sec [e] 42%, 32%, 24% [d] 2.4 min [e] $1,728/day [d] $30.47

D.11 [a] 4.1667 students

D.12 [a] 6 trucks [b] 12 min [c] .857 [f] Yes, save $3,096 in the first year D.13 [a] .267 hrs D.14 [a] .666 [b] 3.2 customers [b] 1.33

D.15 [a] Manger must open M = 2 or more exits. Since there are only 6 turnstiles, 4 must be used as entrances and 2 as exits. D.16 [a] .113 hr = 6.8 min D.17 [a] 0.429 D.18 [a] .05 [b] 1.37 [b] 1.13 cars [c] 2.39 [c] .795 [b] 3.81 machines [c] 0.772 days

[b] .743

D.19 [a] .54 machines waiting D.20 3, 2, 4 MDs, respectively

D.21 Hire two sales people D.22 Individual responses