Operations Management Review Questions

INTRODUCTION TO OPERATIONS attention Spring 2012-ASSIGNMENT 1 Name 1 ID Name 2 ID heading 1 15 Marks Bob Richards, the production manager of Zychol Chemicals, is preparing his quarterly report, which is to include a productivity analysis for his de subprogramment. One of the inputs is production data prepared by Sharon Walford, his operation analyst. The report, which she gave him this morning, showed the following(a). 2011 2012 Production (units) 4,500 6,000 Raw material used (barrel of petroleum by-products) 700 900 delve instant 22,000 28,000 Capital cost applied to the department ($) 375,000 620,000 Bob unfermented the his labor cost per hour has increased from average of $13 per hour to an average of $14 per hour, primarily due to a move by management to become more competitive with a new play along that had just opened a plant in the area. He overly knew that his average cost per barrel of raw material had increased from $320 to $360. He was concerned most the accounting procedures that increased his capital cost from $375,000 to $620,000, hardly earlier discussions with his boss suggested that there was nothing that could be done about the all(prenominal)ocation. Bob wondered if his productivity had increased at all.He called Sharon into the office and conveyed the above discipline to her and asked her to prepare this part of the report. Discussion head word 1- Prepare the productivity part of the report for Mr Richards. He probably expects some analysis of productivity inputs for all factors, as well as a multifactor analysis for both historic period with the change in productivity (up or down) and the amount noted. 2- Assume additional information related to the cost of production were available. The cost per unit for 2011 was $long hundred and for 2012 was $125. Considering the increase in the cost is there a change in multifactor productivity growth? Solution Q1Question 2 15 Marks Forecasts based on average. apt(p) the following data (Stevenson page 96) issue Number of Complaints 1 60 2 65 3 55 4 58 5 64 Prepare a forecast using each of these approaches a. The appropriate naive approach. 2 marks b. A three period moving average. 3 marks c. A weighted average using weight of 0. (most recent), 0. 3 and 0. 2. 4 marks d. Exponential smoothing with a smoothing constant of 0. 4. 6 marks Solution Q2 Question 3 15 Marks Using seasonal relatives, apples Citrus Fruit Farm ships boxed fruit anywhere in Middle East. Using the following information, forecast shipments for the first quadruplet months of next year. Month Seasonal Relatives Month Seasonal Relatives January 1. 2 July 0. 8 February 1. 3 August 0. March 1. 3 September 0. 7 April 1. 1 October 1. 0 May 0. 8 November 1. 1 June 0. 7 December 1. 4 The monthly equation being used is Yt = 402 + 3t Where t = 0 summate to January of ii geezerhood ago Yt = Number of boxes of fruits expected to ship in month t. Solution Q3Question 4 15 Ma rks Consider the following two techniques for forecasting F1 and F2. The actual and the two currys of forecast are as follows Period Demand F1 F2 1 68 66 66 2 75 68 68 3 70 72 70 4 74 71 72 5 69 72 74 6 72 70 76 7 80 71 78 . Calculate the MAD, for each set of forecast. Given your results, which technique appears to be more accurate? Explain b. Calculate the MSE, for each set of forecast. Given your results, which technique appears to be more accurate? c. Calculate the MAPE, for each set of forecast. Given your results, which technique appears to be more accurate? Solution Q4 Question 5 10 Marks Rick annexe, salesperson for Wave Soldering Systems, Inc. (WSSI), has provided you with a proffer for improving the temperature control on your present machine.The machine uses a hot-air glossa to cleanly remove excess solder from printed circuit boards this is a great concept, but the hot-air temperature control lacks dependability. According to Wing, engineers at WSSI have im proved the reliableness of the critical temperature controls. The new system still has the foursome sensitive corporate circuits controlling the temperature, but the new machine has a backup for each. The four integrated circuits have reliabilities of 0. 90, 0. 92, 0. 94, and 0. 96. The four backup circuits all have a reliability of 0. 90. ) What is the reliability of the new temperature controller? b) If you pay a premium, Wing says he can improve all four of the backup units to 0. 93. What is the reliability of this option? Solution Q5 Question 6 15 Marks A weather send has an expected carriage of 16 years from the time it is place into human races orbit. Determine its probability of blendure after each of the following lengths of service. (Assume Exponential distribution is appropriate. ) 2. 5 marks each a, b, c, and d a. More than 9 years b. Less than 12 years c. More than 9 years but less than 12 years . At least 21 years Solution Q6 Question 7 15 Marks An office manage r has have a report from a consultant that includes a section on equipment replacement. The report indicates the scanners have a service life time that is ordinarily distributed with a mean of 41 months and standard deviation of 4 months. On the basis of this information, determine the percentage of scanners can be expected to fail in the following time periods. a. Before 38 months of service b. amidst 40 and 45 months of service c. Within 2 months of the mean life Solution Q7