Question :
21) Norton’s Convenience store has a variable demand. The daily : 1217050
21) Norton’s Convenience store has a variable demand. The daily demand ranges from 270 to 330 customers a day who average purchasing 5 items each. The average daily demand is 300 customers. The convenience store currently operates 12 hours a day. Each order takes approximately 2 minutes.
Required:
a.What is the average customer waiting time, in minutes?
b.What is the cycle time for an order?
c.Norton has decided that the waiting time is too long and has increased the hours the store is open to 15 hours. What is the waiting time now?
22) Brown Laundry has a variable demand. The daily demand ranges from 100 to 140 customers a day with an average of 5 items. The average daily demand is 110 customers. The laundry operates 10 hours a day. Each order takes approximately 5 minutes.
Required:
a.What is the average customer waiting time, in minutes?
b.What is the cycle time for an order?
c.The manager has decided that the waiting time is too long and has increased the workday to 11 hours. What is the waiting time now? Will the customers be any happier?
23) Acme Janitor Service has always taken pride in the fact that it had one of the highest customer response times in the home cleaning service industry. However, as the products manufactured for this industry have become more complex, the company’s customer response time has declined.
Required:
Why do you think that response time declined if all other quality factors have remained the same?
Objective 19.5
1) The theory of constraints is used for cost analysis when:
A) a manufacturing company produces multiple products and uses multiple manufacturing facilities and /or machines
B) using a long-term time horizon
C) operating costs are assumed fixed
D) All of these answers are correct.
2) Throughput contribution equals revenues minus:
A) direct material and direct labor costs
B) direct material costs and minus operating costs
C) direct material costs of goods sold
D) operating costs
3) In the theory of constraints, the only direct costs are:
A) investment costs
B) direct material
C) direct material and direct labor
D) direct material, direct labor, and variable overhead costs
4) Keeping the bottleneck operation busy and subordinating all nonbottleneck operations to the bottleneck operation involves:
A) maximizing the contribution margin of the nonbottleneck operation
B) keeping the bottleneck resource busy at least 90% of the time
C) having the workers at the nonbottleneck operation or machine improving their productivity
D) None of these answers is correct.
5) Producing more nonbottleneck output:
A) creates more inventory, but does not increase throughput contribution
B) creates more inventory and increases throughput contribution
C) creates less pressure for the bottleneck workstations
D) allows for the maximization of overall contribution
Answer the following questions using the information below:
Speedy Dress Manufacturing has two workstations, cutting and finishing. The cutting station is limited by the speed of operating the cutting machine. Finishing is limited by the speed of the workers. Finishing normally waits for work from cutting. Each department works an eight-hour day. If cutting begins work two hours earlier than finishing each day, the two departments generally finish their work at about the same time. Not only does this eliminate the bottleneck, but also it increases finished units produced each day by 160 units. All units produced can be sold even though the change increases inventory stock by 20% from 400 units. The cost of operating the cutting department two more hours each day is $1,600. The contribution margin of the finished products is $6 each. Inventory carrying costs are $0.40 per unit per day.
6) What is the total production per day if the change is made?
A) 6400 units
B) 800 units
C) 880 units
D) 1600 units
