Match the forecasting method to the appropriate classification

Ch 1.1_VC What is Operations Management?

What is Operations Management?

Read the overview below and complete the activities that follow.

Operations management decisions go into every product or service. The operations manager impacts all parts of the business from the raw materials to the delivery of the good or service. To continue to provide the highest quality products and services requires constant improvement. CONCEPT REVIEW: Organizations look to the operations manager to determine what type of process is best suited to fulfill their customers' needs. To make this determination, the operations manager needs to have knowledge of the facts and how to interpret information. By measurement, the operations manager can decide if their process is the most efficient for their product or service.

Problem 2-1

A catering company prepared and served 355 meals at an anniversary celebration last week using nine workers. The week before, five workers prepared and served 255 meals at a wedding reception.

a1.

Calculate the labor productivity for each event. (Round your answers to 1 decimal place.)

  Anniversary

meals/worker

  Wedding

meals/worker

a2.

For which event was the labor productivity higher?

Wedding

Anniversary

 Problem 2-3

Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. Assume 40-hour weeks and an hourly wage of $12. Overhead is 1.5 times weekly labor cost. Material cost is $8 per pound. (Round your answers to 2 decimal places.)

  Week

Output (units)

Workers

Material (lbs)

1

28,000

5

410

2

32,000

8

520

3

33,000

8

470

4

34,000

8

570

Week

MFP (Output / Total Cost)

  1

  2

  3

  4

Match the forecasting method to the appropriate classification.

Reset

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Linear Regression

Linear Regression

Seasonal Relative

Seasonal Relative

Exponential Smoothing

Exponential Smoothing

Delphi Method

Delphi Method

Consumer Surveys

Consumer Surveys

Executive Opinions

Executive Opinions

Associative Models

 Time-series Forecasts

 Judgemental Forecasts

 Match the forecasting method to the appropriate classification.

Reset

Concept Check

Forecasting Method Selection

Read the overview below and complete the activities that follow.

A forecast is a statement about the future value of a variable, such as demand. That is, forecasts are predictions about the future. The better those predictions, the more informed decisions can be. CONCEPT REVIEW: Many different kinds of forecasting techniques are available, and no single technique works best in every situation. Different forecasting methods require different levels of background sophistication in the personnel involved in the methods' creation.

· 1.

Period 1 had actual sales of 1,020. Period 2 had actual sales of 1,010, and Period 3 had actual sales of 1,060. What is the three-period moving average?

select

· select

· 1,020

· 1,010

· 1,030

· 3,090

· 1,060

· 2.

Our last four periods had sales, from oldest to most recent, of 100, 200, 130, and 300. What is the three-period MA?

select

· select

· 143

· 300

· 183

· 210

· 243

· 3.

Last month our forecast was 800, but we sold 1,000 units. What is the forecast error?

select

· select

· -200

· 800

· 200

· 1,800

· 1,000

· 4.

Last month, the forecast error was -300. With an alpha of .10, by how much will this month's forecast change?

select

· select

· -30

· 300

· 30

· -300

· 5.

The last two months had forecast errors of 200 and -50; what is the MAD?

select

· select

· 125

· 150

· -50

· -200

· 75

· 6.

We find our data has a trend, with intercept a=90 and slope b=2. At time 6, what is the forecast?

"Profitable Sustainability" featuring Subaru of Indiana

Read the overview below and complete the activities that follow.

Subaru of Indiana is the first domestic auto plant to achieve zero landfill. They focused on waste reduction, reuse and recycling. They took the time to look for every opportunity to cut waste. CONCEPT REVIEW: The approach used to achieve the zero landfill goal was proactive and forward looking. They tapped into the extensive job knowledge of the plant associates. By tracking the waste they were generating and eliminating it at the source, they have reduced costs and accomplished the zero landfill goal.

Problem 4-8

Fill the following table for cookies sold in a bakery. Indicate by a checkmark which customer requirements and which technical requirements are related. Use "√" to show the relation and "x" to indicate that there is no relation.

Technical Requirements

  Customer Requirements

Ingredients

Handling

Preparation

  Taste

  Appearance

  Texture/Consistency

Problem 5-4

A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $38,000 for A and $31,000 for B; variable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $19.

a.

Determine each alternative’s break-even point in units. (Round your answer to the nearest whole amount.)

  QBEP,A

units

  QBEP,B

units

b.

At what volume of output would the two alternatives yield the same profit? (Round your answer to the nearest whole amount.)

  Profit

units

c.

If expected annual demand is 10,000 units, which alternative would yield the higher profit?

  Higher profit

Problem 5-6

A real estate agent is considering changing her cell phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.40 a minute for daytime calls and $.20 a minute for evening calls. Plan B has a charge of $.50 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75 with 200 minutes of calls allowed per month and a charge of $.38 per minute beyond that, day or evening.

a.

Determine the total charge under each plan for this case: 130 minutes of day calls and 50 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

  Cost for Plan A

$

  Cost for Plan B

$

  Cost for Plan C

$

c.

If the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round each answer to the nearest whole number.Include the indifference point itself in each answer.)

Plan A is optimal from zero to minutes. Plan C is optimal from minutes onward.

d.

Suppose that the agent expects both daytime and evening calls. At what point (i.e., percentage of total call minutes used for daytime calls) would she be indifferent between plans A and B? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places. Omit the "%" sign in your response.)

  Point

percent daytime minutes

rev: 10_10_2014_QC_56210

Problem 6-4

A producer of inkjet printers is planning to add a new line of printers, and you have been asked to balance the process, given the following task times and precedence relationships. Assume that cycle time is to be the minimum possible.