OM exercises

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(A) The production manager of the City Discount Corporation has some data about the firm
process layout as shown below:

Tasks Direction Normal

Time

A 1-2 9 min

B 1-3 9

C 2-3 5

D 3-4 12

F 2-5 8

G 4-5 5

H 5-6 8

L 4-7 6

N 6–7 11

M 6-8 6

O 7-8 7

Requirements:

1- Draw Pert Chart.

2- Find the minimum number of work stations.

3- If the firm has to work 2 shifts, 8 hours/shift and the firm has to do 48 units / day assign
tasks to work stations and measure the efficiency rate?

4- Measure the idle time & the average idle time.

5- Measure the efficiency ratio.

(B) Assume you have the following data:

Possible Future Demand

Alternatives Low Moderate High

Small Facility $80 $120 -$50
Medium Facility -$25 $210 $280
Semi-Large Facility -$70 $300 $350
Large Facility -$110 -$60 $480

The demand probabilities low 20%, Moderate??? & High 30%

1- Choose the right project using all the decision-making methods.
2- Find EVPI.