1. Northeastern Insurance Company is considering opening an office in the U.S. The two cities under consideration are Philadelphia and New York. The factor rating (higher scores are better) for the two cities are given in the following table. In which city should Northeastern locate?

2. Six processes are to be laid out in six areas along a long corridor at Rita Gibson Accounting Services in Daytona Beach. The distance between adjacent work centers in 40 feet. The number of trips between centers is given in the following table:

3. A total of 300 observations of Bob Ramos, an assembly-line worker, were made over a 40- hour worksheet. The sample also showed that Bob was busy working (assembling the parts) during 250 observations.

a. Find the percentage of time Bob was working.
b. If you want a confidence level of 95%, and if + 3% is an acceptable error, what size should the sample be?
c. Was the sample size adequate?

4. Baker Mfg. Inc. wishes to compare its inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory.
a. What is Baker's inventory turnover?
b. What is Baker's percent of assets committed to inventory?
c. How does Baker's performance compare to the industry leaders?

5. M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of 250 units, and this is constant throughout the year. Carrying cost is estimated to the $1 per unit per year, and the ordering cost is $20 per order.
a. To minimize cost, how many units should be ordered each time an order is placed?
b. How many orders per year are needed with the optimal policy?
c. What is the average inventory if costs are minimized?
d. Suppose that the ordering cost is not $20, and Cotteleer has been ordering 150 units each time an order is placed. For this order policy (of Q=150) to be optimal, determine what the ordering cost would have to be.

6. Prepare a graph of the monthly forecasts and average forecast demand for Chicago Paint Corp., a manufacturer of specialized paint for artist.

7. The demand for subassembly S is 100 units in week 7. Each unit of S requires 1 unit T and 2 units of U. Each unit of T requires 1 units of W, and 1 unit of X. Finally, each unit of U requires 2 units of Y and 3 units of Z. One firm manufactures all items. It takes 2 weeks to make S, 1 week to make T, 2 weeks to make U, 2 weeks to make V, 3 weeks to make W, 1 week to make X, 2 weeks to make Y, and 1 week to make Z.
a. Construct a product structure. Identify all levels, parents, and components.
b. Prepare a time-phased product structure.

8. The following 5 overhaul jobs are waiting to be processed at Avianic's Engine Repair Inc. These jobs were logged as they arrived. All dates are specified as planning calendar days. Assume that all jobs arrived on day 180; today's date is 200.

Using the critical ratio scheduling rule, in what sequence would the jobs be processed?

9. Given the following information about a product at Michael Gibson's firm, what is the appropriate setup time?

10. What is the overall reliability that bank loans will be processed accurately if each of the 5 clerks shown in the chart has the reliability shown?