A2 19A - OIDD 101 - 2019 - Introduction to Operations, Information and Decisions Professors: PDF

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OIDD 101 - 2019 - Introduction to Operations, Information and Decisions
Professors: Gérard Cachon/Sergei Savin, Santiago Gallino...

Description

University of Pennsylvania The Wharton School Operations, Information and Decisions Department

Assignment 2: OIDD 101, Spring 2019 Instructions: • • • • • • •

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You must submit this assignment by 11:30pm, Monday, February 18 2019 Late submissions receive zero credit. You must submit your own assignment. Your assignment is submitted only once you click the "submit" button! Do NOT forget to click submit. Once you click submit, you will NOT be allowed to submit a different set of answers – you will only be able to submit once! There are 10 questions in this assignment, each worth 1 point. There is no partial credit.

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Penn!ID:!_________________________________!

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Q1.!Framous!Framers!makes!custom!frames!for!beautiful!artworks!of!various!shapes!and! sizes.!On!average,!they!can!make!3!custom!frames!per!hour.!However,!15%!of!the!frames! end!up!having!quality!issues.!The!ones!with!quality!issues!need!to!be!redone,!which!takes! an!additional!12!minutes!per!frame.!Assuming!they!prioritize!re-doing!the!frames!that!have! quality!issues!(i.e.,!if!there!are!frames!that!need!to!redone,!they!would!prioritize!those! rather!than!making!new!frames),!how!many!custom!frames!per!hour!can!they!successfully! complete?! ! ! ! frames/hour! ! ! ! ! ! ! ! ! ! ! Q2-Q3.!The!OIDD!department!is!looking!to!recruit!their!incoming!cohort!of!PhD!students! this!admissions!season.!They!have!a!three-stage!admissions!process:! !

! ! In!the!first!stage,!the!admissions!committee!screens!all!applications.!Of!these,!14%!move!on! to!the!interview!stage.!Of!the!applicants!who!receive!an!interview,!35%!receive!an!offer!of! admission!to!the!PhD!program.!30%!of!applicants!who!receive!the!offer!decline!the!offer.! The!remaining!students!(who!receive!an!offer!and!do!not!decline!it)!join!the!incoming! cohort!of!PhD!students.!! ! Q2.!The!admissions!committee!would!like!to!have!an!incoming!cohort!of!at!least!5!new!PhD! students.!On!average,!how!many!applications!should!they!make!sure!they!receive!to!attain! this!goal?!! ! ! applications! ! ! ! ! !

Penn!ID:!_________________________________!

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Q3.!Suppose!the!admissions!committee!receives!20!applications!per!day!during!the! admissions!season.!During!this!time,!the!committee!has!the!capacity!to!screen!16! applications!per!day,!interview!2!applicants!per!day,!and!send!4!offers!per!day.!! ! What!is!the!implied!utilization!(in!%)!of!the!bottleneck!step!of!the!admissions!process?!! !! ! %! ! ! ! !

Penn!ID:!_________________________________!

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Q4.!An!insurance!agency!needs!to!process!three!types!of!customer!calls:!New!customers! looking!to!buy!insurance!(New),!existing!customers!looking!to!renew!their!insurance! (Renew),!and!existing!customers!looking!to!file!an!insurance!claim!(Claim).!They!have!three! departments!that!serve!these!customers:!Customer!Service,!Application!Processing,!and! Claims!Processing.!Each!type!of!customer!has!its!own!path!through!the!process!and!does! not!necessarily!visit!all!departments.!The!following!table!shows!the!different!amounts!of! time!that!are!involved!in!processing!the!different!types!of!customers!at!the!different! departments:!! ! ! Customer! Application! Claims! ! Service! Processing! Processing! Number!of!staff! ! 6! 20! 5! Processing!time! New! 5! 25! -! Customer! (min/customer)! Renew! ! 3! 15! -! Customer! Claim! ! 4! -! 40! Customer! ! On!average,!250!“New”!customers,!490!“Renew”!customers,!and!75!“Claim”!customers! arrive!per!day.!The!insurance!agency!is!open!from!8:00am!to!5:00pm!each!day.!! ! What!is!the!implied!utilization!of!the!Application!Processing!department!(in!%)?! ! %! ! ! ! ! !

Penn!ID:!_________________________________!

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Q5-Q7.!Jake’s!Contracting!renovates!kitchens!and!bathrooms.!They!order!marble!tiles!from! a!supplier!that!charges!a!flat!fee!of!$50!per!order!and!$2!per!tile.!Their!annual!inventory! holding!cost!percentage!is!25%.!They!need!1500!marble!tiles!per!week!to!satisfy!demand.!! ! Q5.!How!many!tiles!should!Jake’s!Contracting!purchase!with!each!order,!such!that!they!can! minimize!the!ordering!and!inventory!holding!costs?!! ! ! ! tiles! ! ! ! ! ! ! ! ! Q6.!Suppose!Jake’s!Contracting!orders!8000!tiles!at!a!time!(i.e.,!each!order!is!for!8000!tiles).! What!would!be!the!interval!of!time!(in!weeks)!between!orders?!! ! ! weeks! ! ! ! ! ! ! ! Q7.!Suppose!the!supplier!is!running!a!promotion,!in!which!they!give!a!10%!discount!off!the! regular!price!of!$2!per!tile!if!they!purchase!8000!or!more!tiles.!What!is!the!per!tile!ordering! and!inventory!holding!costs!($)!if!they!were!to!place!an!order!of!10000!under!this! promotion?! ! ! $! ! ! !

Penn!ID:!_________________________________!

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Q8-Q10.!Perfect!Paints!produces!paint!in!Philadelphia.!They!focus!their!production!on!four! popular!colors:!white,!grey,!yellow,!and!green.!They!produce!white!paint,!then!grey!paint,! then!yellow!paint,!then!green!paint,!and!then!they!repeat!that!sequence.!When!running,!the! paint!machine!produces!at!a!rate!of!1200!gallons!per!hour!no!matter!what!color!of!paint!it! is!producing.!So!that!the!colors!are!perfect,!they!need!30!minutes!to!set!up!the!paint! machine!before!switching!to!the!next!color!(i.e.,!30!minutes!to!switch!to!white,!30!minutes! to!switch!to!grey,!30!minutes!to!switch!to!yellow,!and!30!minutes!to!switch!to!green).!The! demand!for!each!of!the!paint!colors!are!given!in!the!table!below:! ! ! White! Grey! Yellow! Green! Demand!(gallons/hour)! 450! 250! 200! 50! ! Q8.!Suppose!Perfect!Paints!wants!to!minimize!their!inventory!while!still!satisfying!demand.! How!many!gallons!of!white!paint!should!they!produce!with!each!batch?!! ! ! gallons! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Q9.!Suppose!Perfect!Paints!produces!5400!gallons!of!white!paint,!3000!gallons!of!grey! paint,!2400!gallons!of!yellow!paint,!and!600!gallons!of!green!paint!in!a!production!cycle.! How!many!gallons!per!hour!of!paint!(of!any!color)!can!they!produce?!! ! ! !

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Q10.!Suppose!Perfect!Paints!produces!6300!gallons!of!white!paint,!3500!gallons!of!grey! paint,!2800!gallons!of!yellow!paint,!and!700!gallons!of!green!paint!in!a!production!cycle.! Say!they!are!demand!constrained!(see!the!information!in!the!table!above).!What!is!their! average!inventory!of!yellow!paint!(in!gallons)?! ! gallons! !

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