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Test Bank for Operations Management Sustainability and Supply Chain Management 3rd Canadian Edition by Jay Heizer

Test Bank for Operations Management Sustainability and Supply Chain Management 3rd Canadian Edition by Jay Heizer

Note: You are purchasing a standalone product; MyLab Operations Management does not come packaged with this content. Students, if interested in purchasing this title with MyLab Operations Management, ask your instructor for the correct package ISBN and Course ID. Instructors, contact your Pearson representative for more information. Operations Management: Sustainability and Supply Chain Management presents a broad introduction to the field of operations in a realistic, meaningful and practical manner, while offering the largest and most diverse collection of issues on the market. Problems found in the third Canadian edition contain ample support to help readers better understand concepts important to today’s operations management professionals. If you would like to purchase both the physical text and MyLab Operations Management, search for: 0135222664 / 9780135222669 Operations Management: Sustainability and Supply Chain Management, Third Canadian Edition Plus MyLab OM with Pearson eText — Access Card Package Package consists of: 0134838076 / 9780134838076 Operations Management: Sustainability and Supply Chain Management, Third Canadian Edition 0135234514 / 9780135234518 MyLab OM with Pearson eText — Standalone Access Card — for Operations Management: Sustainability and Supply Chain Management, Third Canadian Edition

Operations Management Sustainability and Supply Chain Management
About the Authors
Brief Table of Contents
Table of Contents
Preface
About the Third Canadian Edition
New to This Edition
1 Operations and Productivity
Learning Objectives
What is Operations Management?
Organizing to Produce Goods and Services
The Supply Chain
Why Study Operations Management?
Approach
Solution
Insight
Learning Exercise
What Operations Managers Do
Where are the OM Jobs?
The Heritage of Operations Management
Operations in the Service Sector
Differences Between Goods and Services
Growth of Services
Service Pay
New Challenges in Operations Management
The Productivity Challenge
Productivity Measurement
Approach
Solution
Insight
Learning Exercise
Related Problems
Productivity Variables
Labour
Capital
Management
Productivity and the Service Sector
Ethics, Social Responsibility, and Sustainability
Chapter Summary
Ethical Dilemma
Discussion Questions
Solved Problems
Solved Problem 1.1
Solution
Solved Problem 1.2
Solution
Problems*
National Air Express
Service Methods
Budget Considerations
Discussion Questions
Frito-Lay: Operations Management in Manufacturing
Discussion Questions*
Hard Rock Cafe: Operations Management in Services
Discussion Questions*
Chapter 1 Rapid Review
Self-Test
2 Operations Strategy in a Global Environment
Learning Objectives
A Global View of Operations and Supply Chains
Reduce Costs
Improve the Supply Chain
Provide Better Goods and Services
Understand Markets
Learn to Improve Operations
Attract and Retain Global Talent
Cultural and Ethical Issues
Developing Missions and Strategies
Mission
Strategy
Achieving Competitive Advantage Through Operations
Competing on Differentiation
Competing on Cost
Competing on Response
10 Strategic OM Decisions
Approach
Solution
Insight
Learning Exercise
Issues in Operations Strategy
Strategy Development and Implementation
Key Success Factors and Core Competencies
Build and Staff the Organization
Integrate OM With Other Activities
Strategic Planning, Core Competencies, and Outsourcing
The Theory of Comparative Advantage
Risks of Outsourcing
Rating Outsource Providers
Approach
Solution
Insight
Learning Exercise
Related Problems
Global Operations Strategy Options
International Strategy
Multidomestic Strategy
Global Strategy
Transnational Strategy
Chapter Summary
Ethical Dilemma
Discussion Questions
Solved Problems
Solved Problem 2.1
Solution
Using Software to Solve Outsourcing Problems
Creating Your Own Excel Spreadsheets
Using Excel OM
Using POM for Windows
Problems
Mr. Lube
Discussion Questions
Operations Strategy at Regal Marine
Discussion Questions*
Hard Rock Cafe’s Global Strategy
Discussion Questions†
Chapter 2 Rapid Review
Self-Test
3 Project Management
Learning Objectives
The Importance of Project Management
Project Planning
The Project Manager
Ethical Issues Faced in Project Management
Work Breakdown Structure
Project Scheduling
Project Controlling
Project Management Techniques: PERT and CPM
The Framework of PERT and CPM
Network Diagrams and Approaches
Activity-on-Node Example
Approach
Solution
Insight
Learning Exercise
Approach
Solution
Insight
Learning Exercise
Related Problems
Activity-on-Arrow Example
Approach
Solution
Insight
Learning Exercise
Related Problems
Determining the Project Schedule
Forward Pass
Earliest Start Time Rule
Earliest Finish Rule
Approach
Solution
Insight
Learning Exercise
Related Problems
Backward Pass
Latest Finish Time Rule
Latest Start Time Rule
Approach
Solution
Insight
Learning Exercise
Related Problems
Calculating Slack Time and Identifying the Critical Path(s)
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Insight
Learning Exercise
Related Problems
Total Slack Time
Variability in Activity Times
Three Time Estimates in PERT
Approach
Solution
Insight
Learning Exercise
Related Problems
Probability of Project Completion
Approach
Solution
Insight
Learning Exercise
Related Problem
Approach
Solution
Insight
Learning Exercise
Related Problems
Determining Project Completion Time for a Given Confidence Level
Approach
Solution
Insight
Learning Exercise
Related Problems
Variability in Completion Time of Noncritical Paths
What Project Management has Provided so Far
Cost–Time Trade-Offs and Project Crashing
Approach
Solution
Insight
Learning Exercise
Related Problems
A Critique of PERT and CPM
Advantages
Limitations
Using Microsoft Project to Manage Projects
Entering Data
Viewing the Project Schedule
PERT Analysis
Tracking the Time Status of a Project
Chapter Summary
Ethical Dilemma
Discussion Questions
Using Software to Solve Project Management Problems
Using Excel OM
Using POM for Windows
Solved Problems
Solved Problem 3.1
Solution
Solved Problem 3.2
Solution
Solved Problem 3.3
Solution
Solved Problem 3.4
Solution
Solved Problem 3.5
Solution
Solved Problem 3.6
Solution
Solved Problem 3.7
Solution
Problems*
Fast Creek Lightning: (A)*
Discussion Questions
Project Management at Arnold Palmer Hospital
Discussion Questions*
Managing Hard Rock’s Rockfest
Discussion Questions*
Chapter 3 Rapid Review
Self-Test
4 Forecasting
Learning Objectives
What is Forecasting?
Forecasting Time Horizons
The Influence of Product Life Cycle
Types of Forecasts
The Strategic Importance of Forecasting
Supply Chain Management
Human Resources
Capacity
Seven Steps in the Forecasting System
Forecasting Approaches
Overview of Qualitative Methods
Overview of Quantitative Methods
Time-Series Models
Associative Models
Time-Series Forecasting
Decomposition of a Time Series
Naive Approach
Moving Averages
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Exponential Smoothing
Approach
Solution
Insight
Learning Exercise
Related Problems
Selecting the Smoothing Constant
Measuring Forecast Error
Mean Absolute Deviation
Approach
Solution
Insight
Learning Exercise
Related Problems
Mean Squared Error
Approach
Solution
Insight
Learning Exercise
Related Problems
Mean Absolute Percent Error
Approach
Solution
Insight
Learning Exercise
Related Problems
Exponential Smoothing With Trend Adjustment
Approach
Solution
Insight
Learning Exercise
Related Problems
Trend Projections
Approach
Solution
Insight
Learning Exercise
Related Problems
Notes on the Use of the Least Squares Method
Seasonal Variations in Data
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Cyclical Variations in Data
Associative Forecasting Methods: Regression and Correlation Analysis
Using Regression Analysis for Forecasting
Approach
Solution
Insight
Learning Exercise
Related Problems
Standard Error of the Estimate
Approach
Solution
Insight
Learning Exercise
Related Problems
Correlation Coefficients for Regression Lines
Approach
Solution
Insight
Learning Exercise
Related Problems
Multiple-Regression Analysis
Approach
Solution
Insight
Learning Exercise
Related Problems
Monitoring and Controlling Forecasts
Approach
Solution
Insight
Learning Exercise
Related Problems
Adaptive Smoothing
Focus Forecasting
Forecasting in the Service Sector
Specialty Retail Shops
Fast-Food Restaurants
Chapter Summary
Ethical Dilemma
Discussion Questions
Using Software in Forecasting
Creating Your Own Excel Spreadsheets
USING EXCEL OM
USING POM FOR WINDOWS
Solved Problems
Solved Problem 4.1
Solution
Solved Problem 4.2
Solution
Solved Problem 4.3
Solution
Solved Problem 4.4
Solution
Problems*
Fast Creek Lightning: (B)*
Discussion Questions
Forecasting at Hard Rock Cafe
Discussion Questions*
Chapter 4 Rapid Review
Self-Test
5 Design of Goods and Services
Learning Objectives
Goods and Services Selection
Product Strategy Options Support Competitive Advantage
Product Life Cycles
Life Cycle and Strategy
Introductory Phase
Growth Phase
Maturity Phase
Decline Phase
Product-by-Value Analysis
Generating New Products
New Product Opportunities
Importance of New Products
Product Development
Product Development System
Quality Function Deployment (QFD)
Approach
Solution
Insight
Learning Exercise
Related Problems
Organizing for Product Development
Manufacturability and Value Engineering
Issues for Product Design
Robust Design
Modular Design
Computer-Aided Design (CAD)
Computer-Aided Manufacturing (CAM)
Virtual Reality Technology
Value Analysis
Sustainability and Life Cycle Assessment (LCA)
Time-Based Competition
Purchasing Technology by Acquiring a Firm
Joint Ventures
Alliances
Defining a Product
Make-or-Buy Decisions
Group Technology
Documents for Production
Product LIFE CYCLE Management (PLM)
Service Design
Process–Chain–Network (PCN) Analysis
Adding Service Efficiency
Limit the Options
Delay Customization
Modularization
Automation
Moment of Truth
Documents for Services
Approach
Solution
Insight
Learning Exercise:
Related Problem:
Application of Decision Trees to Product Design
Approach
Solution
Insight
Learning Exercise
Related Problems
Transition to Production
Chapter Summary
Ethical Dilemma
Discussion Questions
Solved Problem
Solved Problem 5.1
Solution
Problems*
StackTeck
Discussion Questions
Product Strategy at Regal Marine
Discussion Questions*
Chapter 5 Rapid Review
Self-Test
Supplement 5 Sustainability in the Supply Chain
Supplement Outline
Learning Objectives
Corporate Social Responsibility1
Sustainability
Systems View
Commons
Triple Bottom Line
People
Planet
Profit
Design and Production for Sustainability
Product Design
Approach
Solution
Insight
Learning Exercise
Related Problems
Production Process
Logistics
Approach
Solution
Insight
Learning Exercise
Related Problems
End-of-Life Phase
Regulations and Industry Standards
International Environmental Policies and Standards
European Union Emissions Trading System
ISO 14000
Supplement Summary
Discussion Questions
Solved Problems
Solved Problem S5.1
Solution
Solved Problem S5.2
Solution
Problems
Building Sustainability at the Orlando Magic’s Amway Center
Discussion Questions*
Green Manufacturing and Sustainability at Frito-Lay
Discussion Questions*
Supplement 5 Rapid Review
Self-Test
6 Managing Quality
Learning Objectives
Quality and Strategy
Defining Quality
Implications of Quality
National Quality Awards
ISO 9000 International Quality Standards
ISO 14000
Cost of Quality (COQ)
Leaders in Quality
Ethics and Quality Management
Total Quality Management
Continuous Improvement
Plan–Do–Check–Act
Six Sigma
Implementing Six Sigma
Employee Empowerment
Benchmarking
Internal Benchmarking
Just-In-Time (JIT)
Taguchi Concepts
Knowledge of TQM Tools
Tools of TQM
Check Sheets
Scatter Diagrams
Cause-and-Effect Diagrams
Pareto Charts
Approach
Solution
Insight
Learning Exercise
Related Problems
Flowcharts
Approach
Solution
Insight
Learning Exercise
Related Problems
Histograms
Statistical Process Control (SPC)
The Role of Inspection
When and Where to Inspect
Source Inspection
Service Industry Inspection
Inspection of Attributes Versus Variables
TQM in Services
Chapter Summary
Ethical Dilemma
Discussion Questions
Problems
Fast Creek Lightning: (C)*
Discussion Questions
The Culture of Quality at Arnold Palmer Hospital
The Issue of Assessing Quality Healthcare
Discussion Questions*
Quality Counts at Alaska Airlines
Discussion Questions*
TQM at Ritz-Carlton Hotels
Discussion Questions*
Chapter 6 Rapid Review
Self-Test
Supplement 6 Statistical Process Control
Learning Objectives
Statistical Process Control (SPC)
Natural Variations
Assignable Variations
Samples
Control Charts
Control Charts for Variables
The Central Limit Theorem
Setting Mean Chart Limits (‐Charts)
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Setting Range Chart Limits (R-Charts)
Approach
Solution
Insight
Learning Exercise
Related Problems
Using Mean and Range Charts
Steps to Follow When Using Control Charts
Control Charts for Attributes
p-Charts
Approach
Solution
Insight
Learning Exercise
Related Problems
C-Charts
Approach
Solution
Insight
Learning Exercise
Related Problems
Managerial Issues and Control Charts
Process Capability
Process Capability Ratio (Cp)
Approach
Solution
Insight
Learning Exercise
Related Problems
Process Capability Index (Cpk)
Approach
Solution
Insight
Learning Exercise
Related Problems
Acceptance Sampling6
Operating Characteristic Curve
Average Outgoing Quality
Supplement Summary
Discussion Questions
Using Software for SPC
Creating Excel Spreadsheets to Determine Control Limits for a c-Chart
Using Excel OM
Using Pom For Windows
Solved Problems
Solved Problem S6.1
Solution
Solved Problem S6.2
Solution
Solved Problem S6.3
Solution
Solved Problem S6.4
Solution
Problems*
PEI Potato Purveyors
Discussion Questions
Frito-Lay’s Quality-Controlled Potato Chips
Discussion Questions*
Farm to Fork: Quality at Darden Restaurants
Two Quality Success Stories
SPC Charts
Discussion Questions*
Supplement 6 Rapid Review
Self-Test
7 Process Strategy
Learning Objectives
Four Process Strategies
Process Focus
Repetitive Focus
Product Focus
Mass Customization Focus
Making Mass Customization Work
Comparison of Process Choices
Crossover Charts
Approach
Solution
Insight
Learning Exercise
Related Problems
Focused Processes
Selection of Equipment and Technology
Process Analysis and Design
Flowchart
Time-Function Mapping
Value-Stream Mapping
Approach
Solution
Insight
Learning Exercise
Related Problems
Process Charts
Service Blueprinting
Special Considerations for Service Process Design
Customer Interaction and Process Design
More Opportunities to Improve Service Processes
Layout
Human Resources
Production Technology
Machine Technology
Automatic Identification Systems (AISs) and RFID
Process Control
Vision Systems
Robots
Automated Storage and Retrieval Systems (ASRSs)
Automated Guided Vehicles (AGVs)
Flexible Manufacturing Systems (FMSs)
Computer-Integrated Manufacturing (CIM)
Technology in Services
Process Redesign
Chapter Summary
Ethical Dilemma
Discussion Questions
Solved Problem
Solved Problem 7.1
Solution
Problems*
Regina Manufacturing’s Process Decision
Discussion Questions
Environmental Sustainability at Walmart
Discussion Questions
Process Strategy at Wheeled Coach Ambulance
Discussion Questions*
Process Analysis at Arnold Palmer Hospital
Discussion Questions*
Alaska Airlines: 20-Minute Baggage Process—Guaranteed!
Discussion Questions*
Chapter 7 Rapid Review
Self-Test
Supplement 7 Capacity and Constraint Management
Learning Objectives
Capacity
Design and Effective Capacity
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Capacity and Strategy
Capacity Considerations
Managing Demand
Demand Exceeds Capacity
Capacity Exceeds Demand
Adjusting to Seasonal Demands
Tactics for Matching Capacity to Demand
Demand and Capacity Management in the Service Sector
Demand Management
Capacity Management
Bottleneck Analysis and the Theory of Constraints
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Theory of Constraints
Bottleneck Management
Break-Even Analysis
Assumptions
Graphic Approach
Algebraic Approach
Single-Product Case
Approach
Solution
Insight
Learning Exercise
Related Problems
Multiproduct Case
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Reducing Risk with Incremental Changes
Applying Expected Monetary Value (EMV) to Capacity Decisions
Approach
Solution
Insight
Learning Exercise
Related Problems
Applying Investment Analysis to Strategy-Driven Investments
Investment, Variable Cost, and Cash Flow
Net Present Value
Approach
Solution
Insight
Learning Exercise
Related Problems
Supplement Summary
Discussion Questions
Using Software for Break-Even Analysis
Using Excel
Using Excel OM
Using POM for Windows
Solved Problems
Solved Problem S7.1
Solution
Solved Problem S7.2
Solution
Solved Problem S7.3
Solution
Solved Problem S7.4
Solution
Solved Problem S7.5
Solution
Problems*
Capacity Planning at Arnold Palmer Hospital
Discussion Questions*
Supplement 7 Rapid Review
Self-Test
8 Location Strategies
Learning Objectives
The Strategic Importance of Location
Location and Costs
Factors that Affect Location Decisions
Labour Productivity
Exchange Rates and Currency Risk
Costs
Political Risk, Values, and Culture
Proximity to Markets
Proximity to Suppliers
Proximity to Competitors (Clustering)
Methods of Evaluating Location Alternatives
The Factor Rating Method
Approach
Solution
Insight
Learning Exercise
Related Problems
Locational Break-Even Analysis
Approach
Solution
Insight
Learning Exercise
Related Problems
Centre-Of-Gravity Method
Approach
Solution
Insight
Learning Exercise
Related Problems
Transportation Model
Service Location Strategy
Geographic Information Systems
Chapter Summary
Ethical Dilemma
Discussion Questions
Using Software to Solve Location Problems
Creating Your Own Excel Spreadsheets
Using Excel OM
Using POM for Windows
Solved Problems
Solved Problem 8.1
Solution
Solved Problem 8.2
Solution
Problems*
Atlantic Assembly Services
Discussion Questions
Locating the Next Red Lobster Restaurant
Discussion Questions*
Hard Rock’s Location Selection
Discussion Questions*
Chapter 8 Rapid Review
Self-Test
9 Layout Strategies
Learning Objectives
The Strategic Importance of Layout Decisions
Types of Layout
Office Layout
Retail Layout
Servicescapes
Warehousing and Storage Layouts
Cross-Docking
Random Stocking
Customizing
Fixed-Position Layout
Process-Oriented Layout
Approach and Solution
Insight
Learning Exercise
Related Problems
Computer Software for Process-Oriented Layouts
Work Cells
Requirements of Work Cells
Staffing and Balancing Work Cells
Approach
Solution
Insight
Learning Exercise
Related Problem
The Focused Work Centre and the Focused Factory
Repetitive and Product-Oriented Layout
Assembly-Line Balancing
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Chapter Summary
Ethical Dilemma
Discussion Questions
Using Software to Solve Layout Problems
Using Excel OM
Using POM for Windows
Solved Problems
Solved Problem 9.1
Solution
Solved Problem 9.2
Solution
Problems*
Automobile Licence Renewals
Discussion Questions
Layout at Arnold Palmer Hospital
Discussion Questions*
Facility Layout at Wheeled Coach Ambulance
Discussion Questions*
Chapter 9 Rapid Review
Self-Test
10 Human Resources, Job Design, and Work Measurement
Learning Objectives
Human Resource Strategy for Competitive Advantage
Constraints on Human Resource Strategy
Labour Planning
Employment-Stability Policies
Work Schedules
Job Classifications and Work Rules
Job Design
Labour Specialization
Job Expansion
Psychological Components of Job Design
Hawthorne Studies
Core Job Characteristics
Self-Directed Teams
Limitations of Job Expansion
Motivation and Incentive Systems
Ergonomics and the Work Environment
Ergonomics
Operator Input to Machines
Feedback to Operators
The Work Environment
Methods Analysis
The Visual Workplace
Labour Standards
Historical Experience
Time Studies
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Predetermined Time Standards
Approach
Solution
Insight
Learning Exercise
Related Problem
Work Sampling
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problem
Ethics
Chapter Summary
Ethical Dilemma
Discussion Questions
Solved Problems
Solved Problem 10.1
Solution
Solved Problem 10.2
Solution
Solved Problem 10.3
Solution
Solved Problem 10.4
Solution
Solved Problem 10.5
Solution
Solved Problem 10.6
Solution
Problems*
Jackson Manufacturing Company
Discussion Questions
The “People” Focus: Human Resources at Alaska Airlines
Discussion Questions*
Human Resources at Hard Rock Cafe
Discussion Questions*
Chapter 10 Rapid Review
Self-Test
11 Supply Chain Management
Learning Objectives
The Supply Chain’s Strategic Importance
Supply Chain Risk
Ethics and Sustainability
Personal Ethics
Ethics Within the Supply Chain
Ethical Behaviour Regarding the Environment
Supply Chain Economics
Approach
Solution
Insight
Learning Exercise
Related Problems
Make-or-Buy Decisions
Outsourcing
Supply Chain Strategies
Many Suppliers
Few Suppliers
Vertical Integration
Joint Ventures
Keiretsu Networks
Virtual Companies
Managing the Supply Chain
Mutual Agreement on Goals
Trust
Compatible Organizational Cultures
Issues in an Integrated Supply Chain
Local Optimization
Incentives (Sales Incentives, Quantity Discounts, Quotas, and Promotions)
Large Lots
Opportunities in an Integrated Supply Chain
Accurate “Pull” Data
Lot-Size Reduction
Single-Stage Control of Replenishment
Vendor-Managed Inventory
Collaborative Planning, Forecasting, and Replenishment
Blanket Orders
Standardization
Postponement
Drop Shipping and Special Packaging
Pass-Through Facility
Channel Assembly
Eprocurement
Electronic Ordering and Funds Transfer
Online Catalogues
Auctions
RFQs
Real-Time Inventory Tracking
Vendor Selection
Vendor Evaluation
Approach
Solution
Insight
Learning Exercise
Related Problems
Supplier Certification
Vendor Development
Negotiations
Cost-Based Price Model
Market-Based Price Model
Competitive Bidding
Contracting
Centralized Purchasing
E-Procurement
Online Catalogues and Exchanges
Online Auctions
Logistics Management
Distribution Systems
Trucking
Railroads
Airfreight
Waterways
Pipelines
Multimodal
Warehousing
Third-Party Logistics
Cost of Shipping Alternatives
Approach
Solution
Insight
Learning Exercise
Related Problems
Security and JIT
Measuring Supply Chain Performance
Supply Chain Performance
Assets Committed to Inventory
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
The Scor Model
Chapter Summary
Ethical Dilemma
Discussion Questions
Solved Problems
Solved Problem 11.1
Solution
Problems
Dell’s Value Chain
Discussion Questions
Darden’s Global Supply Chain
Discussion Questions*
Supply Chain Management at Regal Marine
Discussion Questions*
Arnold Palmer Hospital’s Supply Chain
Discussion Questions*
Chapter 11 Rapid Review
Self-Test
Supplement 11 Supply Chain Management Analytics
Learning Objectives
Techniques for Evaluating Supply Chains
Evaluating Disaster Risk in the Supply Chain
Approach
Solution
Insight
Learning Exercise
Related Problems
Managing the Bullwhip Effect
A Bullwhip Effect Measure
Approach
Solution
Insight
Learning Exercise
Related Problems
Supplier Selection Analysis
Approach
Solution
Insight
Learning Exercise
Related Problems
Transportation Mode Analysis
Approach
Solution
Insight
Learning Exercise
Related Problems
Warehouse Storage
Approach
Solution
Insight
Learning Exercise
Related Problems
Supplement Summary
Discussion Questions
Solved Problems
Solved Problem S11.1
Solution
Solved Problem S11.2
Solution
Solved Problem S11.3
Solution
Solved Problem S11.4
Solution
Problems*
Supplement 11 Rapid Review
Self-Test
12 Inventory Management
Learning Objectives
The Importance of Inventory
Functions of Inventory
Types of Inventory
Managing Inventory
ABC Analysis
Approach
Solution
Insight
Learning Exercise
Related Problems
Record Accuracy
Cycle Counting
Approach
Solution
Insight
Learning Exercise
Related Problems
Control of Service Inventories
Inventory Models
Independent versus Dependent Demand
Holding, Ordering, and Setup Costs
Inventory Models for Independent Demand
The Basic Economic Order Quantity (EOQ) Model
Minimizing Costs
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Robust Model
Approach
Solution
Insight
Learning Exercise
Related Problems
Reorder Points
Approach
Insight
Learning Exercise
Related Problems
Production Order Quantity Model
Approach
Solution
Insight
Learning Exercise
Related Problems
Quantity Discount Models
Approach
Solution
Insight
Learning Exercise
Related Problems
Probabilistic Models and Safety Stock
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Other Probabilistic Models
Demand is Variable and Lead Time is Constant
Approach
Solution
Insight
Learning Exercise
Related problem
Lead Time is Variable and Demand is Constant
Approach
Solution
Insight
Learning Exercise
Related problem
Both Demand and Lead Time are Variable
Approach
Solution
Insight
Learning Exercise
Related problem
Single-Period Model
Approach
Solution
Insight
Learning Exercise
Related Problems
Fixed-Period (P ) Systems
Chapter Summary
Ethical Dilemma
Discussion Questions
Using Software to Solve Inventory Problems
Creating Your Own Excel Spreadsheets
Using Excel OM
Using POM for Windows
Solved Problems
Solved Problem 12.1
Solution
Solved Problem 12.2
Solution
Solved Problem 12.3
Solution
Solved Problem 12.4
Solution
Solved Problem 12.5
Solution
Solved Problem 12.6
Solution
Solved Problem 12.7
Solution
Solved Problem 12.8
Solution
Solved Problem 12.9
Solution
Problems*
Zhou Bicycle Company
Discussion Questions
Managing Inventory at Frito-Lay
Discussion Questions*
Inventory Control at Wheeled Coach Ambulance
Discussion Questions*
Chapter 12 Rapid Review
Self-Test
13 Aggregate Planning and Sales and Operations Planning
Learning Objectives
The Planning Process
Sales and Operations Planning
The Nature of Aggregate Planning
Aggregate Planning Strategies
Capacity Options
Demand Options
Mixing Options to Develop a Plan
Chase Strategy
Level Strategy
Methods for Aggregate Planning
Graphical Methods
Approach
Solution
Insight
Learning Exercise
Related Problems
Analysis of Plan 1 Approach
Solution
Insight
Learning Exercise
Related Problems
Analysis of Plan 2 Approach
Solution
Insight
Learning Exercise
Related Problems
Analysis of Plan 3 Approach
Solution
Insight
Learning Exercise
Related Problems
Mathematical Approaches
The Transportation Method of Linear Programming
Approach
Solution
Insight
Learning Exercise
Related Problems
Management Coefficients Model
Other Models
Comparison of Aggregate Planning Methods
Aggregate Planning in Services
Restaurants
Hospitals
National Chains of Small Service Firms
Miscellaneous Services
Approach
Solution
Insight
Learning Exercise
Related Problems
Airline Industry
Yield Management
Approach
Solution
Insight
Learning Exercise
Related Problems
Chapter Summary
Ethical Dilemma
Discussion Questions
Using Software for Aggregate Planning
USING EXCEL OM
USING POM FOR WINDOWS
Solved Problems
Solved Problem 13.1
Solution
Solved Problem 13.2
Solution
Problems*
Fast Creek Lightning (G)*
Discussion Questions
Andrew-Carter, Inc.
Discussion Questions
Using Revenue Management to Set Orlando Magic Ticket Prices
Discussion Questions*
Chapter 13 Rapid Review
Self-Test
14 Material Requirements Planning (MRP) and ERP
Learning Objectives
Dependent Demand
Dependent Inventory Model Requirements
Master Production Schedule
Bills of Material
Approach
Solution
Insight
Learning Exercise
Related Problems
Modular Bills
Planning Bills and Phantom Bills
Low-Level Coding
Accurate Inventory Records
Purchase Orders Outstanding
Lead Times for Components
MRP Structure
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
MRP Management
MRP Dynamics
MRP and JIT
Finite Capacity Scheduling (FCS)
Small Bucket Approach
Balanced Flow Approach
Supermarket
Lot-Sizing Techniques
Lot-for-Lot
Approach
Solution
Insight
Learning Exercise
Related Problems
Economic Order Quantity (EOQ)
Approach
Solution
Insight
Learning Exercise
Related Problems
Periodic Order Quantity
Approach
Solution
Insight
Learning Exercise
Related Problems
Lot-Sizing Summary
Extensions of MRP
Material Requirements Planning II (MRP II)
Closed-Loop MRP
Capacity Planning
Approach
Solution
Insight
Learning Exercise
Related Problems
MRP in Services
Restaurants
Hospitals
Hotels
Distribution Resource Planning (DRP)
Enterprise Resource Planning (ERP)
ERP in the Service Sector
Chapter Summary
Ethical Dilemma
Discussion Questions
Using Software to Solve MRP Problems
USING EXCEL OM
USING POM FOR WINDOWS
Solved Problems
Solved Problem 14.1
Solution
Solved Problem 14.2
Solution
Solved Problem 14.3
Solution
Solved Problem 14.4
Solution
Problems*
Hill’s Automotive, Inc.
Discussion Questions
When 18 500 Orlando Magic Fans Come to Dinner
Discussion Questions*
MRP at Wheeled Coach Ambulance
Discussion Questions*
Chapter 14 Rapid Review
Self-Test
15 Short-Term Scheduling
Learning Objectives
The Importance of Short-Term Scheduling
Scheduling Issues
Forward and Backward Scheduling
Finite and Infinite Loading
Scheduling Criteria
Scheduling Process-Focused Facilities
Loading Jobs
Input–Output Control
Approach
Solution
Insight
Learning Exercise
Related Problem
Gantt Charts
Approach
Solution
Insight
Learning Exercise
Related Problem
Assignment Method
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Sequencing Jobs
Priority Rules for Dispatching Jobs
Approach
Solution
Insight
Learning Exercise
Related Problems
Critical Ratio
Approach
Solution
Insight
Learning Exercise
Related Problems
Sequencing N Jobs on Two Machines: Johnson’s Rule
Approach
Solution
Insight
Learning Exercise
Related Problems
Limitations of Rule-Based Dispatching Systems
Finite Capacity Scheduling (FCS)
Scheduling Repetitive Facilities
Scheduling Services
Hospitals
Banks
Retail Stores
Airlines
24/7 Operations
Scheduling Service Employees With Cyclical Scheduling
Cyclical Scheduling
Approach
Solution
Insight
Learning Exercise
Related Problems
Chapter Summary
Ethical Dilemma
Discussion Questions
Using Software for Short-Term Scheduling
USING EXCEL OM
USING POM FOR WINDOWS
Solved Problems
Solved Problem 15.1
Solution
Solved Problem 15.2
Solution
Solved Problem 15.3
Solution
Solved Problem 15.4
Solution
Solved Problem 15.5
Solution
Problems*
Old Muskoka Wood Store
Discussion Questions
From the Eagles to the Magic: Converting the Amway Center
Discussion Questions*
Scheduling at Hard Rock Cafe
Discussion Questions*
Chapter 15 Rapid Review
Self-Test
16 Lean Operations
Learning Objectives
Lean Operations
Eliminate Waste
Remove Variability
Improve Throughput
Lean and Just-in-Time
Supplier Partnerships
Lean Layout
Distance Reduction
Increased Flexibility
Impact on Employees
Reduced Space and Inventory
Lean Inventory
Reduce Inventory and Variability
Reduce Lot Sizes
Approach
Solution
Insight
Learning Exercise
Related Problems
Reduce Setup Costs
Lean Scheduling
Level Schedules
Kanban
Determining the Number of Kanban Cards or Containers
Approach
Solution
Insight
Learning Exercise
Related Problems
Advantages of Kanban
Lean Quality
Toyota Production System
Continuous Improvement
Respect for People
Processes and Standard Work Practice
Lean Organizations
Building a Lean Organization
Lean Sustainability
Lean Operations in Services
Suppliers
Layouts
Inventory
Scheduling
Chapter Summary
Ethical Dilemma
Discussion Questions
Solved Problems
Solved Problem 16.1
Solution
Problems*
Lean Operations at Alaska Airlines
Discussion Questions*
Saskatchewan Mutual Insurance Company
Discussion Questions
JIT at Arnold Palmer Hospital
Discussion Questions*
Chapter 16 Rapid Review
Self-Test
17 Maintenance and Reliability
Learning Objectives
The Strategic Importance of Maintenance and Reliability
Reliability
Improving Individual Components
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Providing Redundancy
Approach
Solution
Insight
Learning Exercise
Related Problems
Parallel Redundancy
Approach
Solution
Insight
Learning Exercise
Related Problems
Maintenance
Implementing Preventive Maintenance
Approach
Solution
Insight
Learning Exercise
Related Problems
Increasing Repair Capabilities
Autonomous Maintenance
Total Productive Maintenance
Techniques for Enhancing Maintenance
Simulation
Expert Systems
Automated Sensors
Chapter Summary
Ethical Dilemma
Discussion Questions
Using Software to Solve Reliability Problems
Solved Problems
Solved Problem 17.1
Solution
Solved Problem 17.2
Solution
Problems*
Maintenance Drives Profits at Frito-Lay
Discussion Questions*
Chapter 17 Rapid Review
Self-Test
Business Analytics Module A Decision-Making Tools
Learning Objectives
The Decision Process in Operations
Fundamentals of Decision Making
Approach
Solution
Insight
Learning Exercise
Related Problems
Decision Tables
Approach
Solution
Insight
Learning Exercise
Types of Decision-Making Environments
Decision Making Under Uncertainty
Approach
Solution
Insight
Learning Exercise
Related Problems
Decision Making Under Risk
Approach
Solution
Insight
Learning Exercise
Related Problems
EXCEL OM
Decision Making Under Certainty
Expected Value of Perfect Information (EVPI)
Approach
Solution
Insight
Learning Exercise
Related Problems
Decision Trees
Approach
Solution
Insight
Learning Exercise
Related Problems
A More Complex Decision Tree
Approach
Solution
Insight
Learning Exercise
Related Problems
Using Decision Trees in Ethical Decision Making
Approach
Solution
Insight
The Poker Decision Process
Approach
Solution
Insight
Learning Exercise
Related Problem
Module Summary
Discussion Questions
Using Software for Decision Models
Using Excel OM
Using POM for Windows
Solved Problems
Solved Problem A.1
Solution
Solved Problem A.2
Solution
Solved Problem A.3
Solution
Problems*
Tom Tucker’s Liver Transplant
Discussion Questions
Module A Rapid Review
Self-Test
Business ­Analytics ­Module B Linear Programming
Learning Objectives
Why Use Linear Programming?
Requirements of a Linear Programming Problem
Formulating Linear Programming Problems
Glickman Electronics Example
Graphical Solution to a Linear Programming Problem
Graphical Representation of Constraints
Iso-Profit Line Solution Method
Corner-Point Solution Method
Sensitivity Analysis
Sensitivity Report
Changes in the Resources or Right-Hand-Side Values
Validity Range for the Shadow Price?
Changes in the Objective Function Coefficient
Allowable Ranges for Objective Function Coefficients
Solving Minimization Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Linear Programming Applications
Production-Mix Example
Approach
Solution
Insight
Learning Exercise
Related Problems
Diet Problem Example
Approach
Solution
Insight
Learning Exercise
Related Problems
Labour Scheduling Example
Approach
Solution
Insight
Learning Exercise
Related Problem
The Simplex Method of LP
Integer and Binary Variables
Creating Integer and Binary Variables
Linear Programming Applications with Binary Variables
Limiting the Number of Alternatives Selected
Dependent Selections
A Fixed-Charge Integer Programming Problem
Approach
Solution
Insight
Learning Exercise
Related Problems
Module Summary
Discussion Questions
Using Software to Solve LP Problems
Using Excel Spreadsheets
Solved Problems
Solved Problem B.1
Solution
Solved Problem B.2
Solution
Solved Problem B.3
Solution
Problems*
Golding Landscaping and Plants Inc.
Discussion Questions
Module B Rapid Review
Self-Test
Business Analytics Module C Transportation Models
Learning Objectives
Transportation Modelling
Developing an Initial Solution
The Northwest-Corner Rule
Approach
Solution
Insight
Learning Exercise
Related Problems
The Intuitive Lowest-Cost Method
Approach
Solution
Insight
Learning Exercise
Related Problems
The Stepping-Stone Method
Approach
Solution
Insight
Learning Exercise
Related Problems
EXCEL OM
Approach
Solution
Insight
Learning Exercise
Related Problems
Special Issues in Modelling
Demand Not Equal to Supply
Approach
Solution
Insight
Learning Exercise
Related Problems
EXCEL OM
Degeneracy
Approach
Solution
Insight
Learning Exercises
Related Problems
EXCEL OM
Module Summary
Discussion Questions
Using Software to Solve Transportation Problems
Using Excel OM
Using POM for Windows
Solved Problems
Solved Problem C.1
Solution
Solved Problem C.2
Solution
Problems*
Custom Vans Inc.
Discussion Questions
Module C Rapid Review
Self-Test
Business ­Analytics ­Module D Waiting-Line Models
Learning Objectives
Queuing Theory
Characteristics of a Waiting-Line System
Arrival Characteristics
Size of the Arrival (Source) Population
Pattern of Arrivals at the System
Behaviour of Arrivals
Waiting-Line Characteristics
Service Characteristics
Basic Queuing System Designs
Service Time Distribution
Measuring a Queue’s Performance
Queuing Costs
The Variety of Queuing Models
Model A (M/M/1): Single-Channel Queuing Model With Poisson Arrivals and Exponential Service Times
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Model B (M/M/S): Multiple-Channel Queuing Model
Approach
Solution
Insight
Learning Exercise
Related Problems
Use of Waiting-Line Tables
Approach
Solution
Insight
Learning Exercise
Related Problem
Model C (M/D/1): Constant-Service-Time Model
Approach
Solution
Insight
Learning Exercise
Related Problems
Little’s Law
Model D: Limited-Population Model
Approach
Solution
Insight
Learning Exercise
Related Problems
Other Queuing Approaches
Module Summary
Discussion Questions
Using Software to Solve Queuing Problems
Using Excel OM
Using POM for Windows
Solved Problems
Solved Problem D.1
Solution
Solved Problem D.2
Solution
Solved Problem D.3
Solution
Solved Problem D.4
Solution
Problems*
Labrador Foundry Inc.
Discussion Questions
The Winter Park Hotel
Discussion Questions*
Module D Rapid Review
Self-Test
Business Analytics Module E Learning Curves
Learning Objectives
What is a Learning Curve?
Learning Curves in Services and Manufacturing
Applying the Learning Curve
Arithmetic Approach
Logarithmic Approach
Approach
Solution
Insight
Learning Exercise
Related Problems
Learning-Curve Coefficient Approach
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Strategic Implications of Learning Curves
Limitations of Learning Curves
Module Summary
Discussion Questions
Using Software for Learning Curves
Using Excel OM
Using POM for Windows
Solved Problems
Solved Problem E.1
Solution
Solved Problem E.2
Solution
Problems*
SMT’s Negotiation With IBM
Discussion Questions
Module E Rapid Review
Self-Test
Business Analytics Module F Simulation
Learning Objectives
What is Simulation?
Advantages and Disadvantages of Simulation
Monte Carlo Simulation
Step 1. Establishing Probability Distributions
Step 2. Building a Cumulative Probability Distribution for Each Variable
Step 3. Setting Random-Number Intervals
Step 4. Generating Random Numbers
Step 5. Simulating the Experiment
Approach
Solution
Insight
Learning Exercise
Related Problems
Simulation of a Queuing Problem
Approach
Solution
Insight
Learning Exercise
Related Problems
Simulation and Inventory Analysis
Approach
Solution
Insight
Learning Exercise
Related Problems
Approach
Solution
Insight
Learning Exercise
Related Problems
Module Summary
Discussion Questions
Using Software in Simulation
Using Excel Spreadsheets
Using POM for Windows and Excel OM
Solved Problems
Solved Problem F.1
Solution
Solved Problem F.2
Solution
Problems*
Canadian Shield Airlines Call Centre
Discussion Questions
Module F Rapid Review
Self-Test
Appendix Solutions to Even-Numbered Problems
Appendix I Normal Curve Areas
Appendix II Values of e−λ for use in the Poisson Distribution
Appendix III Table of Random Numbers
Appendix IV Using Excel OM and POM for Windows
Excel OM
Starting the Program
POM for Windows
Using Excel OM and POM for Windows With MyLab Operations Management
Bibliography
Glossary
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Test Bank for Operations Management Sustainability and Supply Chain Management 3rd Canadian Edition by Jay Heizer