Operations Management

OM Case Study Solution MGT 171- Operations Management Case Study submissions are accepted only via Canvas. You are able to submit your work in either DOC or PDF format (no other format is acceptable). Please only submit one file through Canvas. You are allowed to discuss the requirements of this assignments with your classmates, however your submission must be completely yours (you cannot submit this assignment as a group/partnership). Please ensure that you show all your calculations and work. This is essential and required. Question 1 (16 points) RadyMusic Studios is a Music Video company that provides UCSD Film and Music school students with resources to make music videos. RadyMusic Studios has 7 major studios where music videos could be shot. Each music video on average needs about 6 months of time in a studio and during this time, the space cannot be shared between different music videos. Each music video also needs a sound recording device set for 12 months and there are 8 sound recording device sets available at RadyMusic Studios. a) (3 points) How many music videos can be produced at Rady Studios each year? b) (2 points) What is the bottleneck resource? c) (5 points) Given an increase in enrollment, RadyMusic Studios wants to be able to produce 16 music videos per year. Is this currently possible? d) (3 points) If not, how many additional resources (and which types of resources) does RadyMusic Studio need to invest in? a) (3 points) Because of the additional enrollment in the course RadyMusic Studios is able to make an additional $5000 in revenue. Assuming that the cost of a Studio is $2000, and the cost of a Sound Recording Device is $1000, how much money will they make or lose? Question 2 (21 points) Tina is following the Kristen’s success story and repeats the same business plan. Since she heard that Kristen had limited production capacity because of her oven size, she has invested in a better and faster oven; her oven can cook a dozen cookies at 5 minutes. Tina is not as experienced as Kristen in cookie making so it takes her 9 minutes to mix the dough. Tina has a roommate who’s as fast as Kristen’s roommate and all the other steps are exactly the same as Kristen’s cookie company. a) (5 points) What is the capacity of Tina’s Cookie Company, in dozens of cookies per hour, when the order size is 1 dozen? a) (2 points) What is the bottleneck resource? b) (5 points) What is the capacity of Tina’s Cookie Company, in dozens of cookies per hour, when the order size is 2 dozens? c) (2 points) What is the bottleneck resource? b) (5 points) Assume Tina now has 2 ovens. What is the capacity of Tina’s Cookie Company, in dozens of cookies per hour, when the order size is 1 dozen? d) (2 points) What is the bottleneck resource?