EMBRY RIDDLE MGMT651 2.3 - Assignment: Module 2 Problem Set

Instructions:

Format for Problem Set:

1. Title page

2. Write Questions and Answers

3. Reference page (if needed and add citations for every reference)

Answers to these questions are found in Chapters 1, 2, 3, 4, and 5.

Chapter 1:

1. As the field of OSCM has advanced, new concepts have been applied to help companies compete in number of ways, including the advertisement of firm’s products or services. One recent concept to gain the attention of companies is promoting sustainability. Discuss how you have seen the idea of sustainability used by companies to advertise their goods or services.

2. A manufacturing company has entered into a new contract with a major supplier of raw materials used in the manufacturing process. Under the new arrangement, called vendor managed inventory, the supplier manages its raw material inventory inside the manufacturer’s plant, and only bills the manufacturer when the manufacturer consumes the raw material. How is this likely to affect the manufacturer’s inventory turnover ratio?

Chapter 2:

3. Match the following common risks with the appropriate mitigation strategy:

______	Country risks	A.	Detailed tracking, alternate suppliers
______	Regulatory risks	B	Careful selection and monitoring of suppliers
______	Logistics failure	C.	Contingency planning, insurance
______	Natural disaster	D.	Good legal advice, compliance
______	Major quality failure	E.	Currency

4. An electronics company makes communications devices for military contracts. The company just completed two contracts. The navy contract was for 2,300 devices and took 25 workers two weeks (40 hours per week) to complete. The army contract was for 5,500 devices that were produced by 35 workers in three weeks. On which contract were the workers more productive?

Chapter 3:

5. Describe the generic product development process described in the chapter. How does the process change for technology-push products?

6. What factors must be traded off in the product development process before introducing a new product?

Chapter 4:

7. The following activities are part of a project to be scheduled using CPM:

Activity	Immediate Predecessor	Time (Weeks)
A	___	6
B	A	3
C	A	7
D	C	2
E	B, D	4
F	D	3
G	E, F	7

a. Draw the network.

b. What is the critical path?

c. How many weeks will it take to complete the project?

d. How much slack does activity B have?

8. For the network shown:

a. Determine the critical path and the early completion time in weeks for the project.

b. For the data shown, reduce the project completion time by three weeks. Assume a linear cost per week shortened, and show, step by step, how you arrived at your schedule.

Activity	Normal Time	Normal Cost	Crash Time	Crash Cost
A	5	$7,000	3	$13,000
B	10	$12,000	7	$18,000
C	8	$5,000	7	$7,000
D	6	$4,000	5	$5,000
E	7	$3,000	6	$6,000
F	4	$6,000	3	$7,000
G	4	$7,000	3	$9,000

Chapter 5:

9. What are some capacity balance problems faced by the following organizations or facilities?

a. An airline terminal

b. A university computing lab

c. A clothing manufacturer

10. Refer to Exhibit 5.6 on page 120 in your textbook. Why6 is it that the critical zone begins at a utilization rate of about 70 percent in a typical service operation? Draw upon your own experiences as either a customer or a server in common service establishments.