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Chapter 3: Q. 15-4DQ (page 393)
What is required to make cross-docking a viable solution for a logistics provider?
Cross-docking is a process of delivering a product to its end consumer directly from the manufacturer without involving the step of storage or simply without involving warehousing.
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Many bottled water manufacturers have recently worked with their suppliers to switch over to bottles using much less plastic than before, reducing the amount of plastic that needs to be transported, recycled, and/or disposed of. What sourcing practice is this an example of?
Question: A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position tests material that has a defective content on an average of 0.04. By inspecting all items, the inspector can remove all defects. The inspector can inspect 50 units per hour. The hourly rate including fringe benefits for this position is \(9. If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of \)10 each when they are detected in final product testing.
Refers to how common an item is or how many substitutes might be available.
One of your Taiwanese suppliers has bid on a new line of molded plastic parts that are currently being assembled at your plant. The supplier has bid \(0.10 per part, given a forecast you provided of 200,000 parts in year 1; 300,000 in year 2; and 500,000 in year 3. Shipping and handling of parts from the supplier’s factory are estimated at \)0.01 per unit. Additional inventory handling charges should amount to \(0.005 per unit. Finally, administrative costs are estimated at \)20 per month. Although your plant can continue producing the part, the plant would need to invest in another molding machine, which would cost \(10,000. Direct materials can be purchased for \)0.05 per unit. Direct labor is estimated at \(0.03 per unit plus a 50 percent surcharge for benefits; indirect labor is estimated at \)0.011 per unit plus 50 percent benefits. Up-front engineering and design costs will amount to $30,000. Finally, management has insisted that overhead be allocated if the parts are made in-house at a rate of 100 percent of direct labor cost. The firm uses a cost of capital of 15 percent per year. What should you do, continue to produce in-house, or accept the bid from your Taiwanese supplier?
Question: Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their requests take on average 10 minutes to be processed. The service counter is staffed by only one clerk, Judy Gumshoes, who works eight hours per day. Assume Poisson arrivals and exponential service times.
d. What are the probability that an arriving student (just before entering the Administrative Services Office) will me and at least one other student waiting in line?
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