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Solve the following problems from your text in an MS Word document with questions using APA style. Your answers should provide thoughtful, supporting details, and examples and graphics as necessary

Chapter 9

1. Rafael’s Taco Hut has determined that its production facility has a design capacity of 525 tacos per day. The effective capacity, however, is 425 tacos per day. Lately Rafael has noticed that output has been 400 tacos per day. Compute both design and effective capacity utilization measures. What can you conclude?

2. Cathy’s Cake Bakery can comfortably produce 100 cakes in one day. If Cathy takes some unusual measures, such as hiring her two sisters to help in the kitchen and work overtime, she can produce up to 200 cakes in one day.

a. What are the design and effective capacities for Cathy’s Cake Bakery?

b. If Cathy is currently producing 105 cakes, compute the capacity utilization for both measures. What can you conclude?

3. Demand for more wildlife has grown at Wally’s Wildlife Reserve, and it is considering expanding. One option is to expand by purchasing property next to the reserve that will be able to meet expected future demand. Another option is to expand the current reserve by a small amount now and take a wait-and-see attitude, with the possibility of a larger expansion in two years

Management has estimated the following chances for demand:

· The likelihood of demand being high is 0.70

· The likelihood of demand being low is 0.20

Profits for each alternative have been estimated as follows:

· Large expansion has an estimated profitability of either $45,000 or $20,000, depending on whether demand turns out to be high or low.

· Small expansion has a profitability of $10,000, assuming that demand is low.

· Small expansion with an occurrence of high demand would require considering whether to expand further. If the company expands at that point, the profitability is expected to be $30,000. If it does not expand further, the profitability is expected to be $7,000.

a. Draw a decision tree diagram for Wally’s Wildlife Reserve.

b. Solve the decision tree you developed. What should Wally’s Wildlife Reserve do?

Chapter 10

Bob’s Boat Factory is reevaluating its boat’s facility layout. The current layout is shown below along with the from–to matrix. Bob has to leave department C in its current location because relocation costs are too high. It is considering exchanging departments B and D. Evaluate the proposal by computing the ld score for both layouts.

From–To Matrix for
Bob’s Boat Factory

Candles R Us is a retailer that sells every kind of candle imaginable. The different types of candles are stored in departments that all take up the same amount of space. Given the available warehouse space and a from–to matrix showing the number of trips to and from each department help Candles R Us decide where to store each type of candle.

From-To Matrix for Candles R Us