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Lecture

MSCI432 Lecture Notes - Msci, Operations Management, Flowchart


Department
Management Sciences
Course Code
MSCI432
Professor
Binyamin Mantin

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MSCI 432: Production and Service Operations Management, Winter 2010
Assignment # 1
Due by Thursday, January 28, 2010 in class, individual submissions
1. [3 marks] Read the article “Russia’s Factories Shift Gears” and pay attention to Gartung’s changes at
Chelyabinsk Forge-and-Press.
a. Using a bullet-point list, briefly summarize the changes, keeping in mind terminology used in the
class. Cite the text to support your points. (try to limit your answer to 120 words)
b. Comment on Gartung’s prediction regarding the fate of his competitors.
2. [4 marks] Retrieve the income statements and balance sheets of two publicly-traded firms from the
same industry for the three most recent years (different from those already discussed in the class).
Then, generate the 6 financial ratios mentioned in the class.
a. Generate and plot the inventory related measures/ratios of these firms.
b. Assess the inventory measures/ratios of each firm.
c. Contrast the two firms. Which stock were you to choose among the two based on these
measures/ratios?
Note: since you need to submit you work independently, it is highly unlikely your choice of firms will
coincide with that of another student.
3. [3 marks] A major oil company is considering the optimal timing for the construction of new
refineries. From the past experience, each doubling of the size of a refinery at a single location results in
an increase in the construction costs of about 68%. Furthermore, a plant size of 10,000 barrels per day
costs $6 million. Assume that the demand for the oil is increasing at a rate of 2 million barrels yearly
and the discount rate for the future costs is 15 percent.
a) Find the value of k and a assuming a relationship of the form f(y) = kya. Assume that y is in units of
barrels per day.
b) Determine the optimal timing of the plant additions and the optimal size of each plant.
c) Suppose that the largest single refinery that can be built with current technology is 15000 barrels per
day. Determine the optimal timing of plant additions and the optimal size of each plant in this case. (
Year = 365 days)
4. [20 marks] Shouldice Hospital Case Analysis
Learning Objectives: To apply process analysis methods and Little’s Law
To understand how OM can be applied to healthcare management problems
Purpose of the Analysis: To determine
capacity,
throughput, and
resource utilization
of the current and the future Shouldice Hospital
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