Homework Assignment 1
ISOM 319: Operations Management
1. Input: Warehouse worker(s), package item(s), transportation vehicle, transportation pilots/drivers, and information for best method of travel. Transformation: Care for package(s), maintain client(s) informed, and transport package(s). Output: Transported package(s) and correct location and time of arrival. 2. Input: Idea development, financial backing, engineers, blueprint(s) design, prototype(s) creation, and material(s) selection. Transformation: Research and development, market approval, premarket modification(s), market confirmation, and trail production. Output: Final product, mass production, and product marketing. 3. Input: Customer cash, customer account, financial institution, and financial institution employees. Transformation: Receiving deposit, allocation of account, secure money, and responsible for value. Output: Secure storage, enhanced balance, and availability.
Yes, it is possible to have both high flow time and inventory, or have them both low. I would rather have a low inventory with a low flow time, because it means that the process would have a low waiting time.
1. I = $100M
R = $400M+$200M/year
T = I/R
100/600 = .16 years => 2 months; The avg. dollar spends 60 days in the process.
2. I = RxT
R = 10,000/year
T = 3 weeks => 3/50 (office weeks) 10,000 x 3/50 yr = 600 claims at any given points
Nissan Motor Company reported a total of $180M in revenues in the past year. On average, during one year Nissan Motor Company has a warehouse and dealership inventory of $12M. It has been discovered that Nissan Motor Company has a motor vehicle markup of about fifty percent. What is the average time that motor vehicles are in warehouse or dealership inventory before they are sold?
I= $12M, R= $180M/year, T=?
T=I/R => $12M/$120/year= 0.1 yrs
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