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Problem 2.
The first chart helps a leader analyze the optimal reorder size depending on the
companies fill rate. For example, if a company is okay with a 90% fill rate, they
should opt for a reorder size of 160 per quarter to keep inventory on hand lower. But
if you want an almost 100% fill rate, you could choose a lower reorder size since the
inventory on hand is nearly the same. The second chart shows how much inventory is
on hand, the reorder quantity and reorder point. This chart helps a leader which items
are at a stock out and need to be order more. The leader can also group his products
depending on their stock out and create a strategy to better that. Overall the charts are
used by the leader to be as efficient as possible and bring in the biggest net profit for
the organization.
Problem 3
The assembly line did not work for Boeing because unlike the automotive assembly
lines, the Boeing 777 assembly lines were not continuous and steady enough. I
remember the video saying that the assembly line only moved a few inches or so
every 10 minutes. Assembly lines are usually not stopped unless a rare mistake has
happened but Boeing in many circumstances had to stop the assembly line to finish a
more to Boeing since they could still sell more planes without having to rush to finish
a plane in 9 or so days.
Problem 4.
So, with the demand for TSA work goes up, due to the number of people flying goes
up, the TSA needs to increase one of 3 buffers. Because this is a service, there can’t
be any inventory buffer. The capacity buffer also does not go up because they did not
hire any new TSA workers so the resulting factor is that the time buffer increases.
This means that passengers can expect to wait longer for the services TSA provides.
Problem 5
UPS struggled the previous 2 Christmas seasons because of a huge spike in demand
and not enough increase in its capacity buffer. This resulted in UPS having a time
buffer with its services since it cannot have an inventory buffer. To help cope with the
demand UPS increased it capacity buffer for this year, stating they will shorten
delivery dates on packages prior to the period if they have excess capacity. Another
way they decided to cope with problem was telling retailers to charge customers more
for shipping the week of Christmas if they want an on-time delivery. This lowers the
demand for on time deliveries and gives UPS a bit of a time buffer on its services.
Problem 6
(See Packet) Well first things first are that you must work on staff problems. Whether
that firing employees because they’re late or hiring more staff members because there
are not enough. This is the most important thing because staff issues added up to
being 64% of all delay issues. Then you look to mechanical issues. Maybe looking to
make repairs or upgrades on the rides so that there aren’t as many mechanical issues.
Lastly the weather is an uncontrollable factor, which means cannot be regulated
unless the climate in the area is seasonal and you could consider being open in certain
times of the year rather than others.
Problem 7
Reducing the size of its portfolios means weeding out products or services that are not
doing the best for the company. For example, if a company has 10 different products
but only products A,B, and C are doing good, reducing those 10 products to only 3
improves the amount of inventory and staff you have on hand. Focusing on a smaller
portfolio allows you to have better customer service because your employees are
specialized more in 3 products rather than 10 and inventory on hand goes down.
Cutting these unneeded costs and focusing on a smaller portfolio can improve
customer satisfaction and net profit for your company.

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