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A Burlington, Ontario company that makes public bathroom stall partitions is considering expanding its business internationally. Currently it manufactures the partitions in a facility in China and buys fasterners from a manufacturer in Canada. It has already expanded to other provinces in Canada. There are few other suppliers of partitions in Canada, two major ones in the United States (who are already globalizing) and only small local companies in Europe, South America and Asia.

You have been hired as a summer student to assess the internationalization potential of this company. Using your knowledge from this course, provide them with an assessment of their possible globalization potential (hint: Yip’s). (Scoring: 3 points in total: 1 point for each correctly described and appropriate driver that demonstrates an understanding of the concepts and the scenario).

 
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Each part to question is listed below.

A) When conducting a time study, a processed is observed and timed. Then a performance rating is applied to the observed time to compute a normal time. What is the reasoning behind applying a performance rating?

b What are type I errors and type II errors in regards to control charts? Why would a company be concerned with these errors?

c What is the purpose of the Ishikawa Fishbone (Cause and Effect Diagram) quality tool?

d In waiting lines, what is the relation between a service time and service rate? Which is used for waiting line models?

e A waiting lines model has an arrival rate of 6 customers per hour and a service rate of 4 customers per hour. Would you support using 7 servers in this situation? Why or why not?

 
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Scenario: Tyne Frebern is the general manager of a 10-year-old hotel on Oahu, Hawaii. His hotel started with 500 rooms, but has since grown to be a 3,000-room hotel. The site has become a major convention venue since it combines history (Pearl Harbor is next door), as well as a fabulous view. Additionally, with the growth and proximity to Seattle and Silicon Valley, it has become the place to get away for executive retreats and conventions.

The general manager realizes there are problems with his organization, however. His hotel is currently organized based on Figure 1.4 in Chapter 1 of your textbook.

A hotel business guest arrives in the evening and wants his standard king room, but the hotel assigned him a single room. He then orders room service, and they arrive late with the wrong order. His shoes are not shined when left out, and when he goes to the gift shop they are out of aspirin.

What suggestions do you have for the general manager (GM) to turn this fiasco into a positive situation?

 
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You must do the necessary calculations in the answer cells. Simply providing a number in the answer cell will not receive any credit. When look at the answer cell, I want to see a number, when I click on the cell I want to see the excel formula, for example, if I asked you the sum of cells B5 through D5, this is what I want to see: 7035.0 or 7035.0 1234 2345 3456 Note: cells (J4 & L4) (above) contain formulas that use cell referencing – which is a requirement for responses on all assignments. Part 1: Enter the requested information into the green cells. Round off to 1 decimal point. The online Collegiate Products Store gathered the following information regarding sweatshirts: Annual Demand (monthly demand 1/12 of annual demand) 1080 Cost per hoodie 15 Carrying Cost per sweatshirt per year as a percentage of the cost of a sweatshirt 30% Cost per order placed Lead time in months 1 Standard Deviation of Demand during lead time 20 Desired Service Level should be at least 96.00% z-value =========> $50 1.75 Question 1: If you don’t use safety stock, you should place an order when the inventory position reaches what amount? Question 2: If you plan on using safety stock, how many should have have? (Give amount of safety stock only)? Question 3: How much sweatshirts should be ordered when you reach the Re-Order Point? Part 2: Enter the requested information into the yellow cells. Round off to 1 decimal point (Use the data given below for questions referring to Part 2) EOQ 250 units Daily Demand 25 units per day Lead time in days 10 days Desired service level should be at least 95.50% (note: Look up z-value in table) Standard Deviation of Demand during lead time and rev 10 see note below (note this is not the daily sd of demand, but the sd over the entire review period + lead time) Inventory Position 212 units in stock Part 2, Question 1: What is the optimal review period? Part 2, Question 2: What is the target Inventory level? Part 2, Question 3: How much should ordered? days units units
 
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