# Homework for Supply Chain Management

SoccerBoss
Category:
Management
Price: \$20 USD

Question description

Introduction to Supply Chain Management Homework 2 (50 points)

For all the problems, to receive full scores, you have to show your complete and accurate work. If you only provide the final answers without showing your computations, you will not be assigned a full score (or you will miss the opportunity of receiving partial credit).

Problem 1) (12 points)

1. a)  Compute the multifactor productivity measure (output in sales dollars) for each week using the data provided below for the production of chocolate bars. Assume 45-hour weeks and an hourly wage of \$14. Overhead is 2.5 times the total weekly labor cost. Material cost is \$12 per pound. Standard price to sell is \$200 per unit. (10 points)

2. b)  Whatdotheproductivityfiguressuggest?(Whatisthetrend?)(2point)

Problem 2) (12 points)

Jimbo Elrod has obtained fixed and unit variable cost in formation of four potential locations for his professional wrestling school and summarized it in the table below. All values are in dollars.

1. a)  Jimbo plans to charge the same amount for tuition regardless of where he decides to establish his school. If he believes that 450 students will matriculate each year, which location will result in the lowest total cost? (4 points)

2. b)  Whatisthebreak-evenpointforeachlocationifJimbodecidestocharge\$22perstudent?(4 points)

3. c)  How many student enrollments would make Sites B and D equally attractive? (4 points)

 Week Output (units) Workers Material (lbs) 1 2,500 6 520 2 2,750 7 540 3 2,850 8 560 4 3,000 9 580
 Site Fixed Cost Variable Cost A 10,000 24 B 12,000 20 C 14,000 18 D 16,000 17

Problem 3) (18 points)

Astro Industries of Minneapolis, MN, makes weekly shipments to 20 customers in the Dallas area. Each customer’s order weighs, on average, 1,500 pounds. A direct truck shipment from Minneapolis to Dallas costs \$1,800. The maximum load per truck is 40,000 pounds.

1. a)  How much would it cost Astro to make direct, single-order shipments to all of its customers each week? What would the utilization level for the trucks look like? (5 points)

2. b)  Suppose a Dallas-based warehousing firm has agreed to run a break-bulk warehousing operation for Astro at a cost of \$75 per hundred-weight. Local deliveries to each customer would tack on another \$100 per customer per week. How much money could

Astro save by going with the break-bulk solution? (8 points)

3. c)  How high would the warehousing cost (currently at \$75 per hundred-weight) have to be

before break-bulk warehousing is no more attractive than direct shipments? (5 points)

Note: You can solve Parts a and b together as we did in class practice problem.

Problem 4) (8 points)

1. a)  A barbecue sauce producer sells their product in a 40 ounce bottle. Their historical process mean has been 40 ounces with a standard deviation of 0.5 ounces. If their tolerance limits are set at 40 ounces plus or minus 2 ounce, what is the process capability ratio of the bottle filling process? (4 points)

2. b)  Abarbecuesauceproducersellstheirproductina30ouncebottle.Theircurrentprocess mean is 29.70 ounces with a standard deviation of 0.45 ounces. If their tolerance limits are set at 30 ounces plus or minus 1.5 ounce, what is the process capability index of the bottle filling process? (4 points)

Bonus) (8 points)

MountainMole Foods has decided to use the perfect order measurement approach to track its logistics performance. According to MountainMole, a perfect order is one that (1) is delivered on time, (2) arrives in one complete shipment, (3) arrives undamaged, (4) is correctly billed. MountainMole has the following performance figures for the past four years: (Assume that there is at most one error per order.)

Year

Total Shipments
On-time Shipments Complete Shipments Undamaged Shipments Correctly Billed Shipments

1. a)  Calculate performance for each of the four years. What is the overall trend in the performance, if any? What factors explain the results? (6 points)

2. b)  IfyouwerelookingtoimproveMountainMole’slogisticsperformance,whatareasmight you concentrate on based on these results? (2 points)

2000 2001

2002 2003

 250,000 320,000 360,000 380,000 190,000 290,000 340,000 345,000 198,000 275,000 318,000 350,000 196,000 270,000 346,000 378,000 180,000 235,000 268,000 282,000

(Top Tutor) Daniel C.
(997)
School: Carnegie Mellon University
Studypool has helped 1,244,100 students

1823 tutors are online

### Related Management questions

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors