BUSI 634 Operations Management Homework 1 Due: September 12(GS01), 16(DC01), 17(DC02), 18(BA01), 2013 * Please Show All

l Your Work for the Multiple Choice Questions. No credit is given if work is not shown.

1. (3 points) Mt. Kinley is a strategy consulting firm that divides its consultants into three classes: Associates, Managers, and Partners. The firm has been stable in size for the last 20 years, ignoring growth opportunities in the 90s, but also not suffering from a need to downsize in the recession at the beginning of the 21st century. Specifically, there have been and are expected to be 200 Associates, 60 Managers, and 20 Partners. The work environment at Mt. Kinley is rather competitive. After four years of working as an Associate, a consultant goes either up or out; that is, becomes a Manager or is dismissed from the company. Similarly, after six years, a Manager either becomes a Partner or is dismissed. The company recruits MBAs as Associates; no hires are made at the Manager or Partner level. A Partner stays with the company for another 10 years (a total of 20 years with the company). (a) How many new MBA graduates does Mt. Kinley have to hire every year? a) b) c) d) e) f) 0 50 100 150 200 250

(b) What is the probability that a new hire at Mt. Kinley will become Partner (as opposed to being dismissed after 4 or 6 years)? a) b) c) d) e) 0% 4% 8% 10% 15%

2. (1 point) Incoming goods flow into US at the rate of $423 billion every year. Imagine the supply chain to be a long pipeline where goods are put in at one end, and they come out at the other end (at the Ports). Due to inspection and increased congestion, the lead time (flow time) has increased. Suppose the flow time increases by one day. What is the increase in inventory (in the pipeline) on account of the one-day delay (in billions of $)? Assume the same rate of flow of $423 billion per year. Choose the closest answer. 1

a) b) c) d) e)

1 50 100 400 800

3. (5 points) Cachon & Terwiesch, problem Q 3.4: Western Pennsylvania Milk Company.

4. (1 points) Please read the Quinte MRI case, and identify steps in the process and provide a flowchart of the process.