SCM Final Exam Review Sheet
Process Management (output, productivity, etc) [Ch 3]
A local market research firm has several thousand small projects involving data gathering and statistical analysis.
past one person would both gather and analyze the data. An experienced person can complete an average of 10 such
projects in an eight-hour day.
The firm’s management is thinking of assigning two people to each project.
One person would gather data,
check it, and transmit it to the statistical analysis program for the analyst to complete. After some practice, the new
process can be completed with a standard time of 20 minutes for the data gathering and 30 minutes for the analysis.
What is the output per hour for each alternative?
What is the productivity (output per labor hour)?
would it take to complete 1,000 projects with each alternative?
What would be the labor content (total number of labor
hours) for 1,000 projects for each alternative?
a. 1.25 projects per hour.
c. 800 hours
d. 800 hours
Capacity Management (# of resources needed)[Ch 3]
Total Resource Demands
of 1 resource
A copy shop estimates demand to be 20 million pages per year of copies.
The store is open 3,000 hours per year.
each machine can copy 720 pages per hour and the store wants to maintain a 20% cushion, how many copy machines
should the store have?
Total Resource Demands = 20,000,000 pgs/yr
Maximum Capacity of a Machine = 720 * 3000 = 2,160,000
With a 20% cushion = 2,160,000 * 20% = 432,000
Effective capacity = 2,160,000 – 432,000 = 1,728,000
How many copy machines = 20,000,000 / 1,728,000 = ~12
Jones Company manufactures widgets.
It expects to make and sell 100,000 widgets during the next month.
It takes 10
minutes to make a widget. Production workers each work 200 hours per month.
If Jones Company wants a 20% capacity
cushion, how many production workers should it have?
Demand = 100,000
Max cap of 1 worker = (60 min/1 hr) / 10 min * 200 hours = 1200 widgets/month
Effective capacity = 1200 * 80% = 960
100000 / 960 = 105~
Cooper Company is building a new warehouse.
The company expects that this warehouse will receive 50 deliveries from
suppliers each day.
The warehouse will be open 12 hours per day.
If it takes 2 hours to unload a truck, how many
receiving docks will the warehouse need?
Cooper wants a 40% capacity cushion.
Demand: 100 hours
Resource Max Cap 12 hrs
Capacity cushion 40% = 4.8 hrs
Effective Capacity = 7.2 hrs
# of resources needed = 100 / 7.2 = 13.88 = 14 docks
A neighborhood grocery store serves 80 customers per hour at its busiest time of the day.
If the store wishes to maintain
a cushion of at least 10 minutes per hour at each checkout line and the average customer requires 4 minutes to be wrung