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Activity times are known for a process that has only one step but delays happen sometimes due to quality issues. This results in a waste factor of 20%. What can we say about the comparison between theoretical and effective capacity?

Assume you have a 3-step process using 3 machines with deterministic activity times of 15 min, 20 min, and 15 min respectively and it costs $10 to add a machine at any step. How much can you increase capacity if you invest $20 = ($10*2) to add machines?

Consider Billy-Bob Campus Cookies as described in the reading. If all customers were to order 1 dozen cookies at a time, which of the following statements are true?

Tik Ed McMaster is selling tickets to a balloon ride. The ride takes place at dawn on Sunday because the winds are most calm at that time of day. Demand for the ride is equally likely to be 1, 2, 3, 4, or 5 units. Tik buys the tickets for $10 each and resells them for $20 each. Unsold tickets have no value, and he can only place one order for this week. How many tickets should Tik buy to ensure that there are no lost sales – and why is it not optimal for him to buy this number? 

When considering inventory management, a “batch” refers to:

Assume you have a 3-step process using 3 machines with deterministic activity times of 15 min, 20 min, and 15 min respectively and it costs $10 to add a machine at any step. How much can you increase capacity if you invest $30 = ($10*3) to add machines?

A process contains 2 steps. The duration of Activity A is 10 minutes and it uses Resource X. The duration of Activity B is 5 minutes and it uses Resource Y. What happens to capacity if I make an investment to reduce the activity time for Step B to 2 minutes but Activity A now takes 12 minutes?  

The Harbor-East Star, a daily local newspaper, used the newsvendor model to determine their production quantity to be 1500 papers. Following the recession, the editor observed that the average demand stayed the same but the variability (standard deviation) of demand has decreased. How should the production quantity be changed if demand is normally distributed?

The Hopkins bookstore has decided to stock Lacrosse-playing Blue Jays as part of its souvenir offerings. This particular sub-species of Blue Jays does not get along well with other birds so the storage cost is 10% of the purchase price times the square of the average number of birds in the store. Demand for these birds is stable at 10 units per week, the store is open for 50 weeks per year, the ordering cost S = $10, and all lead times are negligible. [Hint: assume p = $10, and that the total of the annual holding cost, ordering cost, and purchase cost is  .] Since the retailer cannot order partial birds, he decides to round the EOQ down to the nearest integer. How many birds should he order?

When considering what is transformed in a process, an input is: