311 Operations Management Fall 2008Homework # 1 – Process Analysis and Capacity Management (Due Sep. 10)1.(20 points) Dell is known for mass customization. Its secret is to always maintain an inventory of base models, and to offer its customers add-on options. The process is as follows:The first step is receiving the order. After receiving an order, the order is checked for add-ons. If needed, add-ons are added to the base model. (Note that base models are held in inventory). Then the computer is packed, and finally shipped. Draw a process flow diagram for the above process.2.(30 pts., 10 per part) Bank XYZ receives 5 loan requests per hour on average. Each loan request goes through an initial processing stage, after which an “accept or reject” decision is made. Approximately 60% of the loans are accepted, and these require additional processing. Rejected loans require no additional processing. Suppose that on average 10 loans are in the initial processing stage, and 60 (accepted) loans are in the additional processing stage.
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