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Module 1 HW Solutions UPLOADED
Module 1 HW Solutions UPLOADED
1
Homework
Solutions
Posh
Nails
PN1.
S1:
1min;
S2:
8min;
Dryer
chair:
10min;
S3:
4min
Bottleneck:
The
dryer
chair
PN2.
Flow
rate/capacity
=
(1/10)
/
(1/8)
=
8/10
=
0.8
PN3.
(1+8+4)/(13
+
(9+2+6))
=
3/30
=
0.433
PN4.
Direct
labor
cost
=
wage
rate
per
hour
/
flow
rate
per
hour
=
$36
per
hour
/
6
customers
per
hour
=
$6
per
customer
Butternut
BN1.
Use
Littles
Law:
1296skier/hour*5/60
=
108
skiers
Tech
Co.
TC1.
COGS
=
Revenue*(1-gross
margin)
$
155,000,000*(1-0.29)
=
110,050,000
COGS/Inventory
=
Inventory
Turns
110,050,000/20,000,000
=
5.5
TC2.
Annual
Inventory
cost
of
MP3s
=
Cost
of
MP3s
sold*Inventory
cost
Assuming
the
margin
for
the
MP3
player
is
the
same
as
for
the
rest
of
the
firm,
the
MP3
player
is
purchased
for
$35.50
Per
unit
Inventory
cost
of
MP3s
=
Annual
Inventory
Cost
of
MP3s/Inventory
Turns
$35.50*.35/5.5
=
$2.26
Gamer
Co.
GC1.
Paper
screening
Design
&
Production
Testing
Focus
group
Final
decision
RESULT
Activity
capacity
(ideas/hr)
3/2
1
6/(2*8)=.375
1/2
1/3
Demand
(ideas/hr)
25/5/8
25/5/8
*0.6
25/5/8
*0.6
25/5/8
*0.6*0.5
25/5/8
*0.6*0.5*0.35
25/5/8
*0.6*0.5*0.35*0.75
Implied
utilization
41.7%
37.5%
100
%
37.5%
19.7%
This
would
be
25*0.6*0.5*0.35*0.75
=
1.97
ideas/week.
ANSWER:
__1.97
_
idea(s)/week
GC2.
ANSWER:
Testing
.
GC3.
At
the
testing
stage,
only
0.375
ideas/hour
will
make
it
through.
So
this
means
0.375
*
0.5
*
0.35
*
0.75
=
.049
ideas/hour
or
1.96
ideas/week
will
be
put
into
production.
Note
that
this
is
the
same
as
the
unconstrained
amount
in
question
GC1
(no
implied
utilization
exceeds
100%).