Tri Le (Trestin)

TMC 410
Individual Assignment 5
3/20/2018

PROBLEMS​:

Chapter 9:

8. The owners of Sweet-Tooth Bakery have determined that they need to expand their
facility in order to meet their increased demand for baked goods. The decision is whether
to expand now with a large facility or expand small with the possibility of having to
expand again in five years. The owners have estimated the following chances for
demand:

• The likelihood of demand being high is 0.70.

• The likelihood of demand being low is 0.30.
Profits for each alternative have been estimated as follows:
• Large expansion has an estimated profitability of either $80,000 or $50,000, depending
on whether demand turns out to be high or low.
• Small expansion has a profitability of $40,000, assuming demand is low.
• Small expansion with an occurrence of high demand would require considering
whether to expand further. If the bakery expands at this point, the profitability is to be
$50,000.

(a) Draw a decision tree showing the decisions, chance events, and their probabilities, as
well as the profitability of outcomes.
(b) Solve the decision tree and decide what the bakery should do.
Expand (Small) = 0.30 x 40,000 + 0.70 x 50,000 = ​47,000​ ($)
Expand (Large) = 0.30 x 50,000 + 0.70 x 80,000 = ​71,000​ ($)
Answer:​ ​Expand Large​ is better.

12. The owners of Speedy Logistics, a company that provides overnight delivery of
documents, are considering where to locate their new facility in the Midwest. They have
narrowed their search down to two locations and have decided to use factor rating to
make their decision. They have listed the factors they consider important and assigned a
factor score to each location based on a five-point scale. The information is shown here.
Using the procedure for factor rating, decide on the better location.

Weighted factor score for each location = sum of (factor weight*factor score for the location)
for all 4 factors

Therefore,

Score for location 1= 40x5+304+10x3+20x2=200+120+30+40 =​ 390

Score for location 2= 40x3+30x1+10x5+20x4=120+30+50+80 = ​280

Answer:​ ​Location 1​ is better.

15. Joe’s Sports Supplies Corporation is considering where to locate its warehouse in
order to service its four stores in four towns: A, B, C, and D. Two possible sites for the
warehouse are being considered, one in Jasper and the other in Longboat. The following
table shows the distances between the two locations being considered and the four store
locations. Also shown are the loads between the warehouse and the four stores. Use the
load–distance model to determine whether the warehouse should be located in Jasper or
in Longboat.

Total load: 15+10+12+8=45

X = (30 x 15+6 x 10+10.5x12+4.5x8)/(15+10+12+8) = ​14.933
Y = (12x15+12x10+30x12+24x8)/15+10+12+8) = ​18.933

Answer;​ ​14.933 to 18.933

16. Given here are the coordinates for each of the four towns to be serviced by the
warehouse in Problem 15. Use the information from Problem 15 and the center of gravity
method to determine coordinates for the warehouse.

x-coordinate = (4+12+10+8)/4 = ​8.5

y-coordinate = (18+2+8+15)/4 = ​10.75
Answer: ​x = 8.5​ , y = ​10.75

18. If demand is expected to be 3000 units, which location is best?

Answer: ​Location C​ is the best (due to lowest cost.)

Chapter 10:

5. Gator Office Supplies is comparing two layouts for the design of its office building. It
has interviewed managers in order to develop the from–to matrix shown in Table 10.12.
The two layouts considered are shown in Figure 10.14. Which layout do you think is
better for Gator Office Supplies using the load–distance model?

Current Layout:

New Layout:

Calculations:
 Answers:​ The ​Proposed Layout​ is better (due to shorter distance.)

8. David’s Sport Supplies is a store that sells sports equipment and gear for teenagers
and young adults. David’s is in the process of assigning the location of storage areas in
its warehouse (Figure 10.16) to minimize the number of trips made to retrieve needed
items. Given here in Table 10.14 are the departments that need to be located, the number
of trips made per week for each department, and the area needed by each department.

Amount of trips per week by departments:

Sport clothes: ​270 ​(3 Areas) = 90 90 90
Basketball Equipment: ​120 ​(1 Area) = 120
Hockey Equipment: ​150 ​(3 Areas) = 50 50 50
Football Gear: ​100 ​(1 Area) = 100
Baseball Equipment: ​160 ​(2 Areas) = 80 80

According to that order:

Lowest distance multiplier go farthest and highest distance multiplier be closest.

14. An assembly line must be designed to produce 40 containers per hour. The following
data in Table 10.18 give the necessary information (data can be found in the book.)

(a) Draw a precedence diagram.

(b) Compute the cycle time (in seconds) to achieve the desired output rate.

Desired output is 40 containers per hour

Thus cycle time = Required time / Corresponding output

= 60 minutes or 1 hour / 40 containers

= ​1.5 minute/ container

(c) What is the theoretical minimum number of stations?

Total duration of all tasks ( A to G )

= 60 + 12 + 35 + 55 + 10 + 50 + 5

= 227 SECONDS

Required cycle time of each workstation = 1.5 minutes or 90 seconds

Thus. Theoretical minimum number of workstations

= Total duration of all tasks / Required cycle time

= 227 / 90

= ​2.52

(d) Which work element should be assigned to which workstation?

The Balanced workstations are being drawn in such a way so that maximum duration of any
workstation cannot exceed the target cycle time of 1.5 minutes or 90 seconds.

The arrangement as follows :

(e) What are the resulting efficiency and balance delay percentages?
resulting efficiency

= Total duration of all tasks / Cycle time x Number of workstations x 100

= 227 / ( 4 x 90 ) x 100

= 63.05 %
Balance delay percentage

= Sum of idle time / Cycle time x Number of workstations x 110

= ( 18 25 +40 +50) / ( 4 x 90) x 100

= 133/360 x 100

= ​36.95%