Please answer the questions written over on the instructions and please include the e-book in order to answer it. Don’t rewrite questions. No cover page needed.
Please answer questions below. For all the numbers, please use the methods, formulas, and application taken from the ebook attached. Everything is taken from Chapter 5: Technology and Operations
Management on page 90. And please don’t write the questions again over on the paper.
1. Describe at least one application of modern technology in each of these service industries:
a) financial services
b) public and government services
c) transportation services
d) educational services
e) hotel and motel services
How does your example application improve things, or does it?
2. A manager of Paris Manufacturing, which produces computer hard drives, is planning to lease a new automated inspection system. The manager believes the new system will be more accurate than the
current manual inspection process. The firm has had problems with hard drive defects in the past and the automated system should help catch these defects before the drives are shipped to the final
assembly manufacturer. The relevant information follows.
Current Manual Inspection System
Annual fixed cost = $35,000
Inspection variable cost per unit = $15 per unit
New Automated Inspection System
Annual fixed cost = $165,000
Inspection variable cost per unit = $0.55 per unit
Suppose annual demand is 8,000 units. Should the firm lease the new inspection system?
3. In problem 2, assume the cost factors given have not changed. A marketing representative of NEWSPEC, a firm that specializes in providing manual inspection processes for other firms, approached
Paris Manufacturing and offered to inspect parts for $19 each with no fixed cost. It assured Paris Manufacturing that the accuracy and quality of its manual inspections would equal that of the
automated inspection system. Demand for the upcoming year is forecast to be 8,000 units. Should the manufacturer accept the offer?