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Homework2 Opim

The document contains homework assignments for OPIM 3104, including various problem sheets related to hotel management, bakery operations, orchard quality control, machine output analysis, and investment analysis. Each problem requires data analysis to determine if processes are in control or to calculate break-even points for different scenarios. The problems involve statistical analysis and decision-making based on cost and production data.

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5 views7 pages

Homework2 Opim

The document contains homework assignments for OPIM 3104, including various problem sheets related to hotel management, bakery operations, orchard quality control, machine output analysis, and investment analysis. Each problem requires data analysis to determine if processes are in control or to calculate break-even points for different scenarios. The problems involve statistical analysis and decision-making based on cost and production data.

Uploaded by

cwcontractinggroup
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Chris Conrad

Professor Thakur

OPIM 3104 Homework #2

Problem Sheet 3 (1,2,3)

Problem Sheet 4 (1,2,3,4)

Problem Sheet 7 (1,2,3,4)

Problem Sheet # 3
0# 1. Hotel Delivery Problem. You're manager of a 500-room hotel. You want to analyze the time it takes to deliver
luggage to the room. For 7 days, you collect data on 5 deliveries per day. What does the data say? Is the process in control?

Day Delivery Times


D1 D2 D3 D4 D5
1 7.30 4.20 6.10 3.45 5.55
2 4.60 8.70 7.60 4.43 7.62
3 5.98 2.92 6.20 4.20 5.10
4 7.20 5.10 5.19 6.80 4.21
5 4.00 4.50 5.50 1.89 4.46
6 10.10 8.10 6.50 5.06 6.94
7 6.77 5.08 5.90 6.90 9.30

0#2. Hotel Room Ready Problem. You're manager of a 500-room hotel. You want to achieve the highest level of service. For
7 days, you collect the following data on the readiness of 200 rooms. What does the data show? Is the process in control (usez=
3)?
No. No. Not
Day Rooms Ready
1 200 16
2 200 7
3 200 21
4 200 17
5 200 25
6 200 19
7 200 16
0#3. Cookie Problem. You're operations manager of a bakery. You want to ensure that the production process is putting enough
chips into cookies. You inspect 14 cookies as they are produced. Is the chip process in control?

No. No. No. No.


Cookie Chips Cookie Chips
1 11 8 5
2 8 9 8
3 7 10 6
4 8 11 7
5 6 12 5
6 7 13 5
7 7 14 4
Problem Sheet # 4
Q# 1. Orchard Problem. Sweet Orchards Company wants to establish control limits for its
apples before they are sent to the retailers. They randomly take eight crates (assume it is enough)
of one hundred apples in an attribute testing plan and find some apples with blemishes. What
should be the limits on the control chart? Is the process in control?

Box Number of apples with blemishes


1 2
2 3
3 1
4 3
5 4
6 1
7 2
8 0

Q#2. Machine Output Problem. Your supervisor has asked that you check the output of a
machine on the factory floor. The machine is supposed to be producing widgets which have an
average value of the parameter measured equal to 50, and an average range of this parameter
equal to 3.5. The number of widgets sampled is 8. The table below contains the data taken
during the past three hours:

Sample Number: 1 2 3 4 5 6 7 8 9 10
Sample Average: 55 47 49 50 52 57 55 48 51 56
Sample Range: 3 1 5 3 2 6 3 2 2 3
Q#3. Control Limits Problem. In the past, the defect rate for your product has been 1.5%. What
are the upper and lower control chart limits if you wish to use a sample size of 500 and z = 3?

Q# 4. Nebraska Carpet Problem. Nebraska Carpet Factory wants to develop control charts to
assess the quality of its carpets. They take ten rolls of carpet and compute the number of
blemishes on each roll. Based on the following data, develop limits for the control chart and
determine whether the process is in control.

Roll: 1 2 3 4 5 6 7 8 9 10
Number of
Blemishes: 9 5 3 4 1 2 2 0 0 3
Problem Sheet #7 Investment Analysis- Break-even and Crossover
Q1. NC Lathe Problem (Break-even). You’re a cost accountant. Your company is thinking of
making a gear that sells for $150 each. The gear could be made on an NC lathe for $75. The lathe costs $80
thousand.

(a) How many gears do you need to sell to break-even?


(b) What will be the revenue at break-even?

Q2. NC and DNC Lathe Problem (Crossover). You’re a cost accountant. Your company is
thinking of making a gear that sells for $150 each. The gear could be made on an NC lathe for $75 or DNC
lathe for $12. The NC lathe costs $80 thousand & the DNC lathe $175 thousand. If the sales forecast is
1,200 gears,

(a) What is break-even number of gears for NC? For DNC?


(b) Which lathe should be purchased?
Q3. Pie Unlimited (HW). The owner of Pie Unlimited is considering 2 new types of oven to bake her pies.
Oven A can handle 10 pies at a time. The fixed costs associated with oven A are $20,000 and the variable
costs are $2.00 per pie. Oven B is larger and can handle 20 pies at a time. The fixed costs associated with
oven B are $30,000, and the variable costs are $1.25 per pie. The pies sell for $4.50 a piece.

(a) What is the break-even point for each oven?


(b) If the owner expects to sell 5,000 pies, which oven should she purchase?
(c) If the owner expects to sell 9,000 pies, which oven should she purchase?
(d) If the owner expects to sell 10,000 pies, which oven should she purchase?
(e) If the owner expects to sell 20,000 pies, which oven should she purchase?

Q4. Manufacturing (HW). A manufacturer is currently producing an item which has a variable cost of
$0.75 per unit and a selling price of $2.00 per unit. Fixed costs are $20,000. Current volume is 40,000
units. The firm can produce what it believes is a better product by adding a new piece of equipment to
the process line. This equipment represents an increase of $5,000 in fixed cost. The variable cost
increase would be $0.50 per unit. Volume for the new and improved product should rise to 50,000 units.

(a) What is total profit now?


(b) What will be the profit with the new machine?
(c) Should the company invest in the new equipment?

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