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Homework answers / question archive / Appalachian State University  SCM 3660 1) You have been asked to analyze the bids for 200 polished disks used in solar panels
Appalachian State University  SCM 3660
1) You have been asked to analyze the bids for 200 polished disks used in solar panels. These bids have been submitted by three suppliers: Thailand Polishing, India Shine, and Sacramento Glow. Thailand Polishing has submitted a bid of 2,000 baht. India Shine has submitted a bid of 2000 rupee. Sacramento Glow had submitted a bid of $200. You check with your local bank and find that $1= 10 baht and $1= 8 rupee. Which company should you chose?
The price per unit for Thailand Polishing = (Enter your response rounded to the nearest penny) The price per unit for India Shine = (Enter your response rounded to the nearest penny) The price per unit for Sacramento Glow = (Enter your response rounded to the nearest penny)
2.) Charles lackey operates a bakery in Idaho, Falls Because of its excellent product location, demand has increased by 35% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be backed at one time. this new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,800 loaves per month. Employees are paid $8.00 per hour. In addition to the labor cost, Charles has a constant utility cost per month of $700 and a per loaf ingredient cost of $0.50.
current multifactor productivity for 640 work hours per month=
3) MacDonald Products, Inc., of Clarkson, New York, has the option of
( a) proceeding immediately with production of a new top of the line stereo TV that has just completed prototype testing or
( b) having the value analysis team complete a study.
If Ed Lusk, VP for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 120,000 units at $ 530 each, with a probability of 0.76, and a 0.24 probability of 65,000 at $ 530. If, however, he uses the value analysis team (option b), the firm expects sales of 85,000 units at $ 720, with a probability of 0.73, and a 0.27 probability of 70,000 units at $ 720. Value analysis, at a cost of $ 100,000, is only used in option b. Which option has the highest expected monetary value (EMV)?
The goal is to choose a design that maximizes the expected profit at a typical restaurant over a 300day period. Designs K1, K2, and K3 cost $100, 000, $140,000, and $180 000 respectively.
Under design K1, there is a .80 chance that 90 out of each 100 sandwiches are nondefective and a .20 chance that 70 out of each 100 sandwiches are nondefective. Under design K2, there is a . 85 chance that 90 out of each 100 sandwiches are nondefective and a .15 chance that 75 out of each 100 sandwiches are nondefective. Under design K3, there is a .90 chance that 95 out of each 100 sandwiches are nondefective and a .10 chance that 80 out of each 100 sandwiches are nondefective. What is the expected profit level of the design that achieves the maximum expected 300day profit level?
The expected profit level of a design K1 is $ (Enter your response as a real number rounded to two
decimal places.)
The expected profit level of a design K2 is $ (Enter your response as a real number rounded to two
decimal places.)
The expected profit level of a design K3 is $ (Enter your response as a real number rounded to two
decimal places.)
5.) In Myanmar, six laborers, each making the equivalent of $3.00 per day, can produce 38 units per day. In China, ten laborers, each making the equivalent of $1.75 per day, can produce 45 units. In Billings, Montana, two laborers, each making $63.00 per day, can make 105 units.
Based on labor cost per unit only, the most economical location to product the item is , with a labor cost per unit of $............ (Enter your response rounded to two decimal places.
6.) Subway, with more than 20,000 outlets in the U.S., is planning for a new restaurant in Buffalo, New York. Three locations are being considered. The following table gives the factors for each site.
Factor Weight Maitland Baptist Church Northside Mall
Space 
0.30 
55 
65 
80 
Costs 
0.25 
45 
75 
25 
Traffic density 
0.20 
50 
85 
55 
Neighborhood income 
0.15 
45 
70 
45 
Zoning laws 
0.10 
75 
20 
85 
a.) Based on the given information, the best location in Buffalo for Subway to open the new restaurant is…., with a total weighted score of…. Enter your response rounded to two decimal places.
b.) If the weights for Space and Traffic density are reversed, the best location in Buffalo for Subway for Subway to open the new restaurant will be…, with a total weighted score of… (Enter your response rounded to two decimal places.)
7. ) Borges Machine Shop, Inc., has a 1year contract for the production of 225,000 gear housings for a new offroad vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are generalpurpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow:

Annual fixed cost Per unit variable cost
The option GPE is best when the contracted volume is below…units (enter your response as a whole number).
The option FMS is best when the contracted volume is between ..and.. units (enter your response as whole numbers)
The option DM is best when the contracted volume is over …. Units (enter your response as whole numbers)
8. ) The number of yearly breakdowns for the power generator observed over the past 20 years at Orlando Utilities is presented in the following data:
Number of breakdowns 0 1 2 3 4 5 6
Number of years in which breakdowns occurred 2 1 4 3 9 1 0
For Orlando Utilities, the expected number of breakdowns =… (round your response to two decimal places).
9.) Rick Wing, salesperson for Wave Soldering Systems, Inc. (WSSI), has provided you with a proposal for improving the temperature control on your present machine. The machine uses a hotair knife to cleanly remove excess solder from printed circuit boards: this is a great concept, but the hotair temperature control lacks reliability. According to Wing, engineers at WSSI have improved the reliability of the critical temperature controls. The new system still has the four sensitive integrated circuits controlling the temperature, but the new machine has a backup for each. The four integrated circuits have reliabilities of 0.87, 0.89, 0.93, and 0.87. The four backup circuits all have a reliability of 0.87.
a.) The overall reliability of the new temperature controller = % (enter your response as a percentage rounded to two decimal places).
b.) If you pay a premium, Wing says he can improve all four of the backup units to 0.90. The overall reliability of the new temperature controller with the upgraded backup unit = %. (Enter your responses as a percentage rounded to two decimal places).
10. Cynthia Knott’s oyster bar buy fresh Louisiana oysters for $3 per point and sells them for $9 per pound. Any oysters not sold that day are sold to her cousin, who has a nearby grocery store, for $2 per pound. Cynthia believes that demand follows the normal distribution, with a mean of 100 pounds and a standard deviation of 17 pounds. How many pounds should she order each day? Refer to the standard normal table for zvalues.
Cynthia should order pounds of oysters each day. (Round your response to one decimal place).
11. Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX5 was 70(and was normally distributed).
Furthermore, the standard deviation for BX5 was 8. Ms. Flynn would like to maintain a 90% service level.
Safety Stock = units (round your response to the nearest whole number).
Reorder Point = units (Round your response to the nearest whole numbe)
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