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    Chapter 2 Solutions - Matching Supply With Demand

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    Solutions to the 2nd chapter of Matching Supply with demand - An introduction to Operations Management by TMH Cachon | Terwiech

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    Chapter 2 Solutions - Matching Supply With Demand

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    Solutions to the 2nd chapter of Matching Supply with demand - An introduction to Operations Management by TMH Cachon | Terwiech

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    Chapter 2 Solutions - Matching Supply with demand

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    Solutions to the 2nd chapter of Matching Supply with demand - An introduction to Operations Management by TMH Cachon | Terwiech

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    Download as xls, pdf, or txt
    6K views13 pages

    Chapter 2 Solutions - Matching Supply With Demand

    Uploaded by

    donutshop
    Solutions to the 2nd chapter of Matching Supply with demand - An introduction to Operations Management by TMH Cachon | Terwiech

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 13

    Table 2.

    3
    Patient Number
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10
    11

    Arrival Time
    7:35
    7:45
    8:10
    9:30
    10:15
    10:30
    11:05
    12:35
    14:30
    14:35
    14:40

    Table 2.4

    Page 2-10
    Page 2-13

    0.933333333
    15

    Departure Time Flow Time


    8:50
    1:15
    10:05
    2:20
    10:10
    2:00
    11:15
    1:45
    10:30
    0:15
    13:35
    3:05
    13:15
    2:10
    15:05
    2:30
    18:10
    3:40
    15:45
    1:10
    17:20
    2:40
    Average 2:04:33
    56

    Kmart Corp.
    Inventory
    Income
    Total operating revenue
    Cost of goods sold
    Net income
    Wal-Mart Stores Inc.
    Inventory
    Income
    Net sales
    Total operating revenue
    Cost of goods sold
    Net income
    Kmart 2002 Flow Rate
    Kmart 1998 Flow Rate
    Wal-Mart 2002 Flow Rate

    1/28/1998 1/27/1999 1/26/2000 1/31/2001 1/29/2002


    6367

    6536

    6350

    5796

    4825

    33674
    26319
    518

    35925
    28161
    364

    37028
    29732
    -268

    36151
    29853
    -2446

    30762
    26258
    -3219

    16497

    17076

    19793

    21644

    22749

    117958
    119299
    93438
    3526

    137634
    139208
    108725
    4430

    165013
    166809
    129664
    5377

    191329
    193295
    150255
    6295

    217799
    219812
    171562
    6671

    0.1837535 67.070036 5.4420725 3.6750705


    0.2419165 88.299517
    0.1325993 48.398742 7.5415183

    Inventory
    Cost of Goods Sold
    Flow Time (in years)
    Inventory Turnover
    Per-Unit Inventory Cost Percentage

    400
    26442
    0.015127
    66.105
    0.605098

    Throughput (in passengers per hour)


    Inventory
    Flow Time (in hours)
    Flow Time (in minutes)

    255
    35
    0.137255
    8.235294

    Sales
    Inventory

    60000000
    20000000

    Part A
    Selling Price
    COGS per Unit
    Units Sold
    Total COGS
    Flow Time (in years)
    Inventory Turns

    2000
    1000
    30000
    30000000
    0.666667
    1.5

    Part B
    Per-Unit Inventory Cost Percentage
    Per-Unit Inventory Cost (in $)

    16.66667
    166.6667

    Revenue
    Inventory
    COGS

    100000000
    5000000
    50000000

    Part A
    Flow Time (in years)
    Inventory Turnover

    0.1
    10

    Part B
    Per-Unit Inventory Cost Percentage
    Per-Unit Inventory Cost (in $)

    4
    1.2

    Inventory
    Flow Time (in days)
    Part A
    Throughput (in skiers per day)

    1200
    10

    120

    Part B
    New Throughput
    240
    On an average day, there are 1200 skiers, and 240 of those are spending their first night in the hotel.
    In 2002/03 there were still an average of 1200 skiers each day, but only 120 of those were spending their first night in the ho
    Average Daily Revenue (2002/03)
    38400
    Average Daily Revenue (2003/04)
    40800
    Percentage Change from 2002/03 to 2003/04

    5.88%

    ng their first night in the hotel.

    Speed (in MPH)


    Inventory
    Flow time for 1/4-mile stretch of highway (in hrs)
    Throughput (in cars per hour on highway)
    Throughput (in cars per minute on highway)

    60
    24
    0.004167
    5760
    96

    Flow Time (in minutes)


    Flow Time (in hours)
    Throughput (in units per hour)

    12
    0.2
    4000

    Required Inventory (oven size)

    800

    Associates
    Managers
    Partners

    200
    60
    20

    Associate flow time (in years)


    Manager flow time (in years)
    Partner flow time (in years)

    4
    10
    20

    Part A
    Associate throughput

    50

    Part B
    Probability that new associate will become partner
    Odds that new associate will become partner

    0.1
    10 to 1

    Inventories ($MM)
    Sales (net $MM)
    COGS ($MM)

    Costco
    Wal-Mart
    3643
    29447
    48106
    286103
    41651
    215493

    Part A
    Flow Time (in days)

    31.92468 49.87705

    Part B
    Per-Unit Inventory Cost Percentage
    Per-Unit Inventory Cost (in $)

    2.623947 4.099484
    0.131197 0.204974

    Difference between inventory cost for $5 COGS item for the two companies:

    0.073777

    Inventory
    Revenue
    Cost of Goods Sold
    Gross Profit

    McDonald's Wendy's
    129.4
    54.4
    17140.5
    3148.9
    11943.7
    1634.6
    5196.8
    1514.4

    Part A
    Flow Time (in years)
    Inventory Turnover

    0.01083416 0.03328
    92.3006182 30.04779

    Part B
    Per-Unit Inventory Cost Percentage
    Per-Unit Inventory Cost (in $)

    0.32502491 0.998409
    0.00975075 0.029952

    Difference between Wendy's and McDonald's inventory cost per value meal (in $):

    0.020202

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