,Solution manual for Operations Management
An Integrated Approach, 7th Edition by R. Dan
Reid
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,Reid & Sanders Operations Management, 7th Edition Solutions Manual
Solutions Manual
Chapter 2: Operations Strategy and Competitiveness
1. Two workers have the job of placing plastic labels on packages before the
packages are shipped out. The first worker can place 1000 labels in 30 minutes.
The second worker can place 850 labels in 20 minutes. Which worker is more
productive?
Answer:
Productivity of worker 1 = 1000 labels / 30 minutes
= 33.3 labels per minute
Productivity of worker 2 = 850 labels / 20 minutes
= 42.5 labels per minute
Worker 2 is more productive.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
2. Last week a painter painted four houses in three days. This week she painted six
houses in four days. In which week was the painter more productive?
Answer:
Productivity in week 1 = 4 houses / 3 days = 1.33 houses per day
Productivity in week 2 = 6 houses / 4 days = 1.5 houses per day
The painter was more productive in week 2.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
© 2020 John Wiley & Sons, Inc. All rights reserved. SM 2-1
,Reid & Sanders Operations Management, 7th Edition Solutions Manual
3. One type of bread-making machine can make six loaves of bread in five hours. A
new model of the machine can make four loaves in two hours. Which model is
more productive?
Answer:
Productivity of old model machine = 6 loaves / 5 hours = 1.2 loaves per hour
Productivity of new model machine = 4 loaves / 2 hours = 2.0 loaves per hour
The new model is more productive.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
4. A company that makes kitchen chairs wants to compare productivity at two of its
facilities. At facility #1, five workers produced 225 chairs. At facility #2, six
workers produced 263 chairs during the same time period. Which facility was
more productive?
Answer:
Productivity at facility #1 = 225 chairs / 5 workers = 45 chairs per worker
Productivity at facility # 2 = 263 chairs / 6 workers = 43.8 chairs per worker
Facility #1 was more productive.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
© 2020 John Wiley & Sons, Inc. All rights reserved. SM 2-2
,Reid & Sanders Operations Management, 7th Edition Solutions Manual
5. A painter is considering using a new high-tech paint roller. Yesterday he was able
to paint three walls in 45 minutes using his old method. Today he painted two
walls of the same size in 20 minutes. Is the painter more productive using the new
paint roller?
Answer:
Productivity using old method = 3 walls / 45 minutes = 0.07 walls per minute
Productivity using new method = 2 walls / 20 minutes = 0.10 walls per minute
The painter is more productive using the new paint roller.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
6. Aztec Furnishings makes hand-crafted furniture for sale in its retail stores. The
furniture maker has recently installed a new assembly process, including a new
sander and polisher. With this new system, production has increased to 95 pieces
of furniture per day from the previous 55 pieces of furniture per day. The number
of defective items produced has dropped from 8 pieces per day to 2 per day. The
production facility operates strictly eight hours per day. Evaluate the change in
productivity for Aztec using the new assembly process.
Answer:
Using only the non-defective production, productivity has increased from (55 – 8)
= 47 pieces per day to (95 – 2) = 93 pieces per day.
Change in productivity = (93 – 47)/47 × 100% = 97.9%
There is a 97.9% increase in productivity using the new assembly process.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 3 minutes
© 2020 John Wiley & Sons, Inc. All rights reserved. SM 2-3
,Reid & Sanders Operations Management, 7th Edition Solutions Manual
7. Howard Plastics produces plastic containers for use in the food packaging
industry. Last year its average monthly production included 20,000 containers
produced using one shift five days a week with an eight-hour-a-day operation. Of
the items produced 15 percent were deemed defective. Recently, Howard Plastics
has implemented new production methods and a new quality improvement
program. Its monthly production has increased to 25,000 containers with 9 percent
defective.
a) Compute productivity ratios for the old and new production system.
b) Compare the changes in productivity between the two production systems.
Answer:
a) Using only the nondefective production, productivity increased from (20,000
× 0.85) = 17,000 units/month to (25,000 × 0.91) = 22,750 units/month.
b) Change in productivity = (22,750 – 17,000)/17,000 × 100% = 33.8%
There is a 33.8% increase in productivity using the new production method.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 4 minutes
8. Med-Tech labs is a facility that provides medical tests and evaluations for
patients, ranging from analyzing blood samples to performing magnetic resonance
imaging (MRI). Average price to patients is $85 per patient. Labor costs average
$18 per patient, materials costs are $22 per patient, and overhead costs are
averaged at $20 per patient.
a) What is the multifactor productivity ratio for Med-Tech? What does your
finding mean?
b) If the average lab worker spends four hours for each patient, what is the labor
productivity ratio?
Answer:
a) Multifactor productivity = $85/($18 + $22 + $20) = 1.42
This means that the lab is charging approximately 42% over the expenses of labor,
materials, and overhead.
b) Labor productivity = $85/4 hours = $21.25 per hour
Section: Productivity
Subsection: Measuring Productivity
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 4 minutes
© 2020 John Wiley & Sons, Inc. All rights reserved. SM 2-4
,Reid & Sanders Operations Management, 7th Edition Solutions Manual
9. Handy-Maid Cleaning Service operates five crews with three workers per crew.
Different crews clean a different number of homes per week and spend a differing
amount of hours. All the homes cleaned are about the same size. The manager of
Handy-Maid is trying to evaluate the productivity of each of the crews. The
following data have been collected over the past week.
Work Crew Hours Homes Cleaned
Anna, Sue, and Tim 35 10
Jim, Jose, and Andy 45 15
Dan, Wendy, and Carry 56 18
Rosie, Chandra, and Seth 30 10
Sherry, Vicky, and Roger 42 18
Assuming the quality of cleaning was consistent between crews, which crew was
most productive?
Answer:
Productivity of Anna, Sue, and Tim = 10 homes/35 hours = 0.29 homes/hour
Productivity of Jim, Jose, and Andy = 15 homes/45 hours = 0.33 homes/hour
Productivity of Dan, Wendy, and Carry = 18 homes/56 hours = 0.32 homes/hour
Productivity of Rosie, Chandra, and Seth = 10 homes/30 hours = 0.33 homes/hour
Productivity of Sherry, Vicky, and Roger = 18 homes/42 hours = 0.43 homes/hour
The crew of Sherry, Vicky, and Roger was the most productive.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 5 minutes
© 2020 John Wiley & Sons, Inc. All rights reserved. SM 2-5
,Reid & Sanders Operations Management, 7th Edition Solutions Manual
10. Two nurses must each visit and attend to patients in the main hospital. The first
nurse, on average, can visit 50 patients in an 8-hour day. The second nurse tends
to work double shifts, and, on average, cares for 96 patients during the 15 hours
she is working. Which nurse is more productive?
Answer:
Productivity of nurse 1 = 50 patients / 8 hours
= 6.25 patients per hour
Productivity of nurse 2 = 96 patients / 15 hours
= 6.40 patients per hour
Nurse 2 is more productive.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
11. A gallery owner typically sells 10 works of art per month. If she invests in a pop-
up gallery for 14 days in a local mall, she expects to sell 8 works of art. Would she
be more productive if she invested in a pop-up gallery presence?
Answer:
Productivity of traditional gallery = 10 works of art / 30 days = 0.33 works of art
per day or approximately one work of art every 3 days.
Productivity of pop-up gallery = 8 works of art / 14 days = 0.57 works of art per
day or approximately one work of art every 2 days.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
© 2020 John Wiley & Sons, Inc. All rights reserved. SM 2-6
,Reid & Sanders Operations Management, 7th Edition Solutions Manual
12. Tech-Ed Source is a company that administers standardized certification tests in
the information technology field. Those who pass obtain industry certifications
that are important for advancement in their field. Average cost to test-takers is $50
per test. Labor costs for the testing facility averages $10 per test, materials costs
are $5 per test-taker, and overhead costs are averaged at $15 per test-taker.
a) What is the multifactor productivity ratio for Tech-Ed Source? What does
your finding mean?
b) If the average facility proctor spends two hours on each test-taker, what is the
labor productivity ratio?
Answer:
a) Multifactor productivity = $50/($10 + $5 + $15) = $1.67
This means that the company is charging approximately 67% over the expenses of
labor, materials, and overhead.
b) Labor productivity = $50/2 hours = $25 per hour
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
© 2020 John Wiley & Sons, Inc. All rights reserved. SM 2-7
, Reid & Sanders, Operations Management, 7th Edition Solutions Manual
Solutions Manual
Chapter 3: Product Design and Process Selection
1. See-Clear Optics is considering producing a new line of eyewear. After considering the
costs of raw materials and the cost of some new equipment, the company estimates fixed
costs to be $38,000 with a variable cost of $52 per unit produced.
a) If the selling price of each new product is set at $90, how many units need to be
produced and sold to break even? Use both the graphical and algebraic approaches.
b) If the selling price of the product is set at $85 per unit, See-Clear expects to sell 1800
units. What would be the total contribution to profit from this product at this price?
c) See-Clear estimates that if it offers the product at the original target price of $90 per
unit, the company will sell about 1600 units. Will the pricing strategy of $90 per unit
or $85 per unit yield a higher contribution to profit?
Answer:
a) Total Cost = $38,000 + $52Q
Total revenue = $90Q
Break − even Quantity : Q = Fixed Cost / (Selling Price – Variable Cost )
Q = 38, 000 / ( 90 – 52 )
Q = 1, 000, so break − even is exceeded at 1, 001 units.
Break Even
120000
100000
80000
Total Dollars
60000
40000
20000
0
400 800 1200
Quantity Sold
Total Cost Total Revenue
Contribution to Profit = Total Revenue – Total Cost
= SP ( Q ) – FC + VC ( Q )
b)
= 85 (1800 ) – 38, 000 + 52 (1800 )
= $21, 400
©2020 John Wiley & Sons, Inc. All rights reserved. SM 3-1
An Integrated Approach, 7th Edition by R. Dan
Reid
Hello all ,
We have all what you need with best price
Our email :
Our website :
testbanks-store.com
,Reid & Sanders Operations Management, 7th Edition Solutions Manual
Solutions Manual
Chapter 2: Operations Strategy and Competitiveness
1. Two workers have the job of placing plastic labels on packages before the
packages are shipped out. The first worker can place 1000 labels in 30 minutes.
The second worker can place 850 labels in 20 minutes. Which worker is more
productive?
Answer:
Productivity of worker 1 = 1000 labels / 30 minutes
= 33.3 labels per minute
Productivity of worker 2 = 850 labels / 20 minutes
= 42.5 labels per minute
Worker 2 is more productive.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
2. Last week a painter painted four houses in three days. This week she painted six
houses in four days. In which week was the painter more productive?
Answer:
Productivity in week 1 = 4 houses / 3 days = 1.33 houses per day
Productivity in week 2 = 6 houses / 4 days = 1.5 houses per day
The painter was more productive in week 2.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
© 2020 John Wiley & Sons, Inc. All rights reserved. SM 2-1
,Reid & Sanders Operations Management, 7th Edition Solutions Manual
3. One type of bread-making machine can make six loaves of bread in five hours. A
new model of the machine can make four loaves in two hours. Which model is
more productive?
Answer:
Productivity of old model machine = 6 loaves / 5 hours = 1.2 loaves per hour
Productivity of new model machine = 4 loaves / 2 hours = 2.0 loaves per hour
The new model is more productive.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
4. A company that makes kitchen chairs wants to compare productivity at two of its
facilities. At facility #1, five workers produced 225 chairs. At facility #2, six
workers produced 263 chairs during the same time period. Which facility was
more productive?
Answer:
Productivity at facility #1 = 225 chairs / 5 workers = 45 chairs per worker
Productivity at facility # 2 = 263 chairs / 6 workers = 43.8 chairs per worker
Facility #1 was more productive.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
© 2020 John Wiley & Sons, Inc. All rights reserved. SM 2-2
,Reid & Sanders Operations Management, 7th Edition Solutions Manual
5. A painter is considering using a new high-tech paint roller. Yesterday he was able
to paint three walls in 45 minutes using his old method. Today he painted two
walls of the same size in 20 minutes. Is the painter more productive using the new
paint roller?
Answer:
Productivity using old method = 3 walls / 45 minutes = 0.07 walls per minute
Productivity using new method = 2 walls / 20 minutes = 0.10 walls per minute
The painter is more productive using the new paint roller.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
6. Aztec Furnishings makes hand-crafted furniture for sale in its retail stores. The
furniture maker has recently installed a new assembly process, including a new
sander and polisher. With this new system, production has increased to 95 pieces
of furniture per day from the previous 55 pieces of furniture per day. The number
of defective items produced has dropped from 8 pieces per day to 2 per day. The
production facility operates strictly eight hours per day. Evaluate the change in
productivity for Aztec using the new assembly process.
Answer:
Using only the non-defective production, productivity has increased from (55 – 8)
= 47 pieces per day to (95 – 2) = 93 pieces per day.
Change in productivity = (93 – 47)/47 × 100% = 97.9%
There is a 97.9% increase in productivity using the new assembly process.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 3 minutes
© 2020 John Wiley & Sons, Inc. All rights reserved. SM 2-3
,Reid & Sanders Operations Management, 7th Edition Solutions Manual
7. Howard Plastics produces plastic containers for use in the food packaging
industry. Last year its average monthly production included 20,000 containers
produced using one shift five days a week with an eight-hour-a-day operation. Of
the items produced 15 percent were deemed defective. Recently, Howard Plastics
has implemented new production methods and a new quality improvement
program. Its monthly production has increased to 25,000 containers with 9 percent
defective.
a) Compute productivity ratios for the old and new production system.
b) Compare the changes in productivity between the two production systems.
Answer:
a) Using only the nondefective production, productivity increased from (20,000
× 0.85) = 17,000 units/month to (25,000 × 0.91) = 22,750 units/month.
b) Change in productivity = (22,750 – 17,000)/17,000 × 100% = 33.8%
There is a 33.8% increase in productivity using the new production method.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 4 minutes
8. Med-Tech labs is a facility that provides medical tests and evaluations for
patients, ranging from analyzing blood samples to performing magnetic resonance
imaging (MRI). Average price to patients is $85 per patient. Labor costs average
$18 per patient, materials costs are $22 per patient, and overhead costs are
averaged at $20 per patient.
a) What is the multifactor productivity ratio for Med-Tech? What does your
finding mean?
b) If the average lab worker spends four hours for each patient, what is the labor
productivity ratio?
Answer:
a) Multifactor productivity = $85/($18 + $22 + $20) = 1.42
This means that the lab is charging approximately 42% over the expenses of labor,
materials, and overhead.
b) Labor productivity = $85/4 hours = $21.25 per hour
Section: Productivity
Subsection: Measuring Productivity
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 4 minutes
© 2020 John Wiley & Sons, Inc. All rights reserved. SM 2-4
,Reid & Sanders Operations Management, 7th Edition Solutions Manual
9. Handy-Maid Cleaning Service operates five crews with three workers per crew.
Different crews clean a different number of homes per week and spend a differing
amount of hours. All the homes cleaned are about the same size. The manager of
Handy-Maid is trying to evaluate the productivity of each of the crews. The
following data have been collected over the past week.
Work Crew Hours Homes Cleaned
Anna, Sue, and Tim 35 10
Jim, Jose, and Andy 45 15
Dan, Wendy, and Carry 56 18
Rosie, Chandra, and Seth 30 10
Sherry, Vicky, and Roger 42 18
Assuming the quality of cleaning was consistent between crews, which crew was
most productive?
Answer:
Productivity of Anna, Sue, and Tim = 10 homes/35 hours = 0.29 homes/hour
Productivity of Jim, Jose, and Andy = 15 homes/45 hours = 0.33 homes/hour
Productivity of Dan, Wendy, and Carry = 18 homes/56 hours = 0.32 homes/hour
Productivity of Rosie, Chandra, and Seth = 10 homes/30 hours = 0.33 homes/hour
Productivity of Sherry, Vicky, and Roger = 18 homes/42 hours = 0.43 homes/hour
The crew of Sherry, Vicky, and Roger was the most productive.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 5 minutes
© 2020 John Wiley & Sons, Inc. All rights reserved. SM 2-5
,Reid & Sanders Operations Management, 7th Edition Solutions Manual
10. Two nurses must each visit and attend to patients in the main hospital. The first
nurse, on average, can visit 50 patients in an 8-hour day. The second nurse tends
to work double shifts, and, on average, cares for 96 patients during the 15 hours
she is working. Which nurse is more productive?
Answer:
Productivity of nurse 1 = 50 patients / 8 hours
= 6.25 patients per hour
Productivity of nurse 2 = 96 patients / 15 hours
= 6.40 patients per hour
Nurse 2 is more productive.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
11. A gallery owner typically sells 10 works of art per month. If she invests in a pop-
up gallery for 14 days in a local mall, she expects to sell 8 works of art. Would she
be more productive if she invested in a pop-up gallery presence?
Answer:
Productivity of traditional gallery = 10 works of art / 30 days = 0.33 works of art
per day or approximately one work of art every 3 days.
Productivity of pop-up gallery = 8 works of art / 14 days = 0.57 works of art per
day or approximately one work of art every 2 days.
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
© 2020 John Wiley & Sons, Inc. All rights reserved. SM 2-6
,Reid & Sanders Operations Management, 7th Edition Solutions Manual
12. Tech-Ed Source is a company that administers standardized certification tests in
the information technology field. Those who pass obtain industry certifications
that are important for advancement in their field. Average cost to test-takers is $50
per test. Labor costs for the testing facility averages $10 per test, materials costs
are $5 per test-taker, and overhead costs are averaged at $15 per test-taker.
a) What is the multifactor productivity ratio for Tech-Ed Source? What does
your finding mean?
b) If the average facility proctor spends two hours on each test-taker, what is the
labor productivity ratio?
Answer:
a) Multifactor productivity = $50/($10 + $5 + $15) = $1.67
This means that the company is charging approximately 67% over the expenses of
labor, materials, and overhead.
b) Labor productivity = $50/2 hours = $25 per hour
Section: Productivity
Subsection: Interpreting Productivity Measures
LO: 2.5 Define productivity and identify productivity measures.
Bloom’s: Application
AACSB: Analytic
Time on task: 2 minutes
© 2020 John Wiley & Sons, Inc. All rights reserved. SM 2-7
, Reid & Sanders, Operations Management, 7th Edition Solutions Manual
Solutions Manual
Chapter 3: Product Design and Process Selection
1. See-Clear Optics is considering producing a new line of eyewear. After considering the
costs of raw materials and the cost of some new equipment, the company estimates fixed
costs to be $38,000 with a variable cost of $52 per unit produced.
a) If the selling price of each new product is set at $90, how many units need to be
produced and sold to break even? Use both the graphical and algebraic approaches.
b) If the selling price of the product is set at $85 per unit, See-Clear expects to sell 1800
units. What would be the total contribution to profit from this product at this price?
c) See-Clear estimates that if it offers the product at the original target price of $90 per
unit, the company will sell about 1600 units. Will the pricing strategy of $90 per unit
or $85 per unit yield a higher contribution to profit?
Answer:
a) Total Cost = $38,000 + $52Q
Total revenue = $90Q
Break − even Quantity : Q = Fixed Cost / (Selling Price – Variable Cost )
Q = 38, 000 / ( 90 – 52 )
Q = 1, 000, so break − even is exceeded at 1, 001 units.
Break Even
120000
100000
80000
Total Dollars
60000
40000
20000
0
400 800 1200
Quantity Sold
Total Cost Total Revenue
Contribution to Profit = Total Revenue – Total Cost
= SP ( Q ) – FC + VC ( Q )
b)
= 85 (1800 ) – 38, 000 + 52 (1800 )
= $21, 400
©2020 John Wiley & Sons, Inc. All rights reserved. SM 3-1
