1.

Draw a flowchart for the following process of serving customers at Costco gas station: Greet the customer and
take payment card. If it is a credit card, swipe the card and start fueling, otherwise if it is a debit card, ask the customer to enter the PIN and then start fueling. When the pump stops, give the customer the receipt.

2. Please describe when you need to jump out of bed according to the following flowchart?

I will get out of bed if it pasts 7:15am or I have snoozed twice You currently purchase a part used in your production process from an outside supplier, and have decided to begin making this part in-house. You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment. Cost information for these two options is as follows: (Questions 3-7) ALTERNATIVE FIXED COST VARIABLE COST Special-Purpose Equipment General-Purpose Equipment $200,000 per year $50,000 per year $15 per unit $20 per unit

3. What is the break even quantity between the two options? 30,000 units per year 4. What are total costs under the Special-Purpose Equipment option for an annual quantity of 40,000 units? $800,000 5. What are total costs under the General-Purpose Equipment option for an annual quantity of 40,000 units? $850,000 6. For what range of output is the General-Purpose Equipment the low-cost option? 0 - 30,000 units per year 7. At an annual requirement of 40,000 units, what does the company save per year by selecting the low-cost option? $50,000 8. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each table. The data collected from the past weeks diners have been plotted and appear in the following graph. The number of complaints for each category is with each bar. How was the value for the point represented by the triangle calculated?

55 + 32 55 + 32 + 16+ 13 + 4 + 2 9. Ill do it later Table 7.1 (Questions 10-13)

The figure above shows the call routing process for a customer service call center. Incoming calls are routed, depending on the complexity of the callers request. Simple request are routed to work center B, while the more complex calls are routed to work center C (which also takes simple calls when not busy). 10. What is the throughput time for the process, assuming that the Call Center is always busy and has customers waiting to be processed? 18 minutes 11. What is the process bottleneck? D 12. What is the 8-hour capacity for the process? 48 calls 13. Where would you expect customer wait times to occur? C and D Table 7.5 (Questions 14-16) A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

14. Which work center is of greatest concern to the operations manager? Work center X 15. Using the traditional method, in what sequence should products be scheduled for production? D, B, A, C 16. Using the bottleneck method, which product should be scheduled first? Product C Table 7.10 (Questions 17,18) Balance the following line for an output rate of five pieces per hour. Work Element Time (min.) Immediate Predecessors A 7 -B 5 -C 3 -D 4 -E 2 A,B F 5 C G 6 D H 7 E,F I 11 F,G J 4 H,I 17. The theoretical minimum number of stations is: more than four stations. 18. The highest efficiency for a balanced line is: more than 89% and less than 91%. 19. A new minor league baseball team is coming to town and the owners have decided to build a new stadium, either small or large. The success of the team with regard to ticket sales will be either high or low with probabilities of 0.75 and 0.25, respectively. If demand for tickets is high, the large stadium would provide a payoff of approximately $20 million. If ticket sales are low, the loss on the large stadium would be $5 million. If a small stadium is

constructed, and ticket sales are low, the payoff is $500,000 after deducting the cost of construction. If ticket sales are high, the team can choose to build an upper deck, or to maintain the existing facility. Expanding the stadium in this scenario has a payoff of $10 million, whereas maintaining the same number of seats has a payoff of only $3 million. A. Draw a decision tree for this problem. B. What should management do to achieve the highest expected payoff? Small Stadium: 0.25($500,000) + 0.75($10,000,000) = $7,625,000 Large Stadium: 0.25 (-$5,000,000) + 0.75($20,000,000) = $13,750,000 Select the large stadium based on expected value.

20. A lumber mill is capable of producing 10,000 board feet of lumber per day when run ten hours per day with minimal breaks. Over the past year, forestry legislation has reduced the availability of raw materials, so the mill has produced an average of 4,575 board feet per day. What is the capacity of the plant? What is the utilization of the plant? Capacity: 10,000 board feet/day. Utilization: 45.75% Scenario C.1 (Questions 22-27) A single ticket taker can tear tickets and direct movie patrons to their seats at a rate of 90 per hour. Customers arrive every minute for assistance and always wait, regardless of how long the line gets. Arrivals are governed by the Poisson distribution and service is governed by the exponential distribution. 22. What is the utilization of the ticket taker? 0.66 23. What is the probability that customers with tickets arrive and the ticket taker is not helping another patron? 0.33 24. What is the average number of customers in line? 1.33 25. What is the average number of people waiting in line and being seated? 2.00 26. What is the average time a customer must wait in line? 1.33 minutes 27. What is the average combined time a customer waits in line and spends being seated by the ticket taker? 2.00 minutes