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A company manufactures two types of lamps, type A and type B. Each lamp must go through the painting shop and the assembly shop. For the coming month, the company wants to decide how many of each lamp to produce (paint and assemble). No lamps are in inventory from the previous month, and because these types are going to be changed after this month, the company doesn’t want to hold any inventory after this month. It believes the most it can sell this month are 600 type A and 1200 type B. Each type A sells for $300 and each type B sells for $450. The cost of component parts for a type A is $150; for a type Bit is $225. Labor is required for painting and assembly. There are at most 10,000 painting hours and 3000 assembly hours available. Each labor hour for painting costs $11 and each labor hour for assembly costs $15. Each type A model requires five hours for painting and one hour for assembly, and each type B requires six hours for painting and two hours for assembly. The company wants to know how many of each type it should produce (paint and assemble) to maximize its net profit, but it cannot use more labor hours than are available, and it does not want to produce more than it can sell. Develop a spreadsheet model and use Solver to find the best mix of lamp types that stays within the company’s labor availability and maximum sales constraints. Painting and assembling Cost per labor hour painting Cost per labor hour assembling $11 $15 Inputs for painting and assembling Type B| No Labor hours for painting Labor hours for assembling Cost of component parts Selling price Unit margin (unit profit) Type A 5 1 1 $150 $300 $ $80 21 $225 $450 $129 Painting & assembling plan (# of lamps) Type A Type B Number to produce Maximum sales 600 1200 Hours used Constraints (hours per month) Labor availability for painting Labor availability for assembling Hours available 10000 3000 Type A Type B Total Objective Net profit ($ this month)
 
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CASE STUDY

Barry is a 27-year old who is a foodservice manager at a casual dining restaurant. Barry is responsible for supervising and managing all employees in the back of the house. Employees working in the back of the house range in age from 16 years old to 55 years old. In addition, the employees come from diverse cultural and ethnic backgrounds. For many, English is not their primary language.

Communication challenges abound at any workplace. Barry has some common challenges in his operation.

a. Language barriers: not all employees speak English as their first language making verbal communication a challenge at times.

b. Generational (age) barriers: having employees in various age categories can pose a unique set of challenges; their vocabulary may not be consistent with that of older employees. Work values and attitudes may also affect communication among younger and older employees.

c. Cultural and ethnic barriers: Cultural differences in food safety practices may be a challenge for Barry to overcome. Barry may need to identify cultural beliefs and work to understand the ethnic barriers related to food safety. For instance, two employees come from the same country and they have made comments that controlling temperature in their country is not a priority; food can be at room temperature for long periods of time and nothing ever happened.

d. Nonverbal challenges: Barry’s body language (appearance) is telling others he does not care about personal appearance and cleanliness.

e. Emotional barriers: Emotional barriers can interfere with effective communication. Barry comes into work after a rough start at home. These negative emotions are affecting how he communicates with the employees.

Barry is Serv-Safe® certified and tries his best to keep up with food safety issues in the kitchen but he admits it’s not easy. Employees receive “on the job training” about food safety basics (for example, appropriate hygiene and hand washing, time/temperature, and cleaning and sanitizing). But with high turnover of employees, training is often rushed and some new employees are put right into the job without training if it is a busy day. Eventually, most employees get some kind of food safety training. The owners of the restaurant are supportive of Barry in his food safety efforts because they know if a food safety outbreak were ever linked to their restaurant; it would likely put them out of business. Still, the owners note there are additional costs for training and making sure food is handled safely.

One day Barry comes to work and is rather upset even before he steps into the restaurant. Things haven’t been going well at home and he was lucky to rummage through some of the dirty laundry and find a relatively clean outfit to wear for work. He admits he needs a haircut and a good hand scrubbing, especially after working on his car last evening. When he walks into the kitchen he notices several trays of uncooked meat sitting out in the kitchen area. It appears these have been sitting at room temperature for quite some time. Barry is frustrated and doesn’t know what to do. He feels like he is beating his head against a brick wall when it comes to getting employees to practice food safety.

Barry has taken many efforts to get employees to be safe in how they handle food. He has huge signs posted all over the kitchen with these words: KEEP HOT FOOD HOT AND COLD FOOD COLD and WASH YOUR HANDS ALWAYS AND OFTEN. All employees are given a thermometer when they start so that they can check the temperature of food. Hand sinks, soap, and paper towels are available for employees so that they are encouraged to wash their hands frequently.

Read the case given above and answer the following questions:

1. Who is Barry and what is his role at the restaurant?

2. Explain the following two barriers that Barry faces: a) language barrier b) cultural and ethnic barrier

3. One day Barry is rather upset before he steps into the restaurant……..” List four aspects about him that do not suit him as food service manager

4. Why is food safety training not usually effective

5. What is the reason behind the owners of the restaurant being very supportive of Barry?

6. What are the efforts that Barry has taken to let employees practice safety in handling food?

7. What are some of the facilities given to employees to practice and follow safety rules?

8. List two solutions that Barry can use to solve language barriers.[2] { not from the text}

 
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Low Demand (40) $100 $30 We have a choice to build a large factory or a small factory. The demand could be low (40% chance) or high (60% chance). Which of the following changes makes the EVPI (expected value of the perfect information) equal to zero? High Demand (60) De Nothing Overtime Build Small 2 S50 Expand $40 1 Do Nothing SIO 2 Low Demand (40) Cut Prices $60 Build Large High Demand (60) $200 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Build Small – High Demand – Do Nothing is increased from 30 to 100. b Build Large – Low Demand – Do Nothing is increased from 10 to 100. ? Build Small – Low Demand is increased from 100 to 120. d Build Large – High Demand is increased from 200 to 220. e None of the above is correct.
 
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UNG Inc., a manufacturer of widgets, has experienced the following in the previous month. They reported 62 units that failed inspection. Of those 48 units were reworked. Replacement parts for those totaled $150. The labor cost (direct labor + benefits and taxes) for the rework was $450. The cost for reinspection of the reworked units was $150. Additionally, when the bad units were found production was stopped for 30 minutes to troubleshoot this issue so that it would not continue to occur for subsequent production. The value of the lost production time (labor + benefits/taxes and depreciation recovery by capital equipment) was valued at $800. The remaining 14 were not repairable. The material invested in those units totaled $2600. They were sent to recycling/reclaim where $250 was paid to UNG by the recyclers. The lost value of the invested labor (direct labor + benefits and taxes) was $600. To replace the 14 units that were scrapped, $750 of overtime labor was required. During last month, a Kiazen improvement “event” (project) occurred using a cross functional team. The employee cost (salaries + benefits/taxes) and project expenses (equipment and materials) totaled $8600. UNG, Inc. has a person in their Customer Service department who handles customer complaints and issues RMAs (return material authorization). The monthly charge is $1500 to cover the portion of this person’s salary (plus benefits/taxes). The monthly portion of the salary (plus benefits/taxes) of the inspector who performs receiving inspection (materials received from suppliers) is $2100. The Procurement Department conducted an audit/assessment of a possible new supplier who could provide improved raw materials. The employee costs (salaries + benefits/taxes) plus travel expenses were $2200. Additionally, the annual audit of one of UNG’s existing supplier occurred costing $1600 in employee and travel expenses. There are two (2) full-time inspectors who check finished products and perform in-process audits. The monthly portion of their salaries (plus benefits/taxes) is $4900. The monthly calibration of equipment cost $250. Last month, four (4) products were returned. Of these three (3) units were repaired under warranty at a cost of $400 for materials and labor (total for all). The other unit was replaced. The production cost is $350 per unit. All replacement or warranty repaired unit are returned shipped to customer by expedited shipping at a cost of $100 per unit. The monthly portion of the quality system records-keeper salary (plus benefits/taxes) is $2700. One department conducted skills training class for three employees. The total cost of the training was $600 plus employee labor costs of $200 (per person). One customer had installed a widget that failed. UNG, Inc. sent a technician to replace the widget at the customer’s site. The employee costs (salaries + benefits/taxes) plus travel expenses were $3000 plus a new widget (at cost). (see reverse side for more) Below would be a general idea of a good format (as from accounting
 
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