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Rivera, Diana OM 301 Section 004

Homework #1 A. Prob Proble lem m 1.1 1.1 Chuck Sox makes wooen boxes in which to shi! motorc"cles. Chuck an his 3 em!lo"ees inest a total o$ 40 hours !er a" makin% 1&0 boxes. a. 'h 'hat at is is thei theirr !ro !rouc ucti tiit it"( "(

b. Chuck an an his em!lo"ees em!lo"ees hae iscusse iscusse reesi%nin% reesi%nin% the the !rocess !rocess to im!roe e$$icienc". )$ the" increase the rate 1&* !er a"+ what will be their !rouctiit"(

c. 'h 'hat at wil willl be thei theirr uni unitt increase in !rouctiit" !er hour(

. 'hat will will be their !erce !ercenta% nta%ee chan%e chan%e in !roucti !rouctiit" it"( (

,. Prob Proble lem m 1.3 1.3 -his "ear+ onnell"+ )nc. will !rouce */+00 hot water heaters at its !lant in elaware+ in orer to meet ex!ecte %lobal eman. -o accom!lish this+ each laborer at the !lant will work 10 hours !er month. )$ labor !rouctiit" at the !lant is 0.1* hot water heaters !er laborhour+ how man" laborers are em!lo"e at the !lant(

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C. Problem 1.2 illian ok is Presient o$ ake$ront Manu$acturin%+ a !roucer o$ bic"cle tires. ok makes 1000 tires !er a" with the $ollowin% resources5 abor5 8aw Materials5 9ner%"5 Ca!ital Costs5

400 hours !er a" 6 71&.*0 !er hour &0+000 !ouns !er a" 6 71 !er !oun 7*+000 !er a" 710+000 !er a"

a. 'hat is the labor !rouctiit" !er laborhour $or these tires at ake$ront Manu$acturin%(

b. 'hat is the multi$actor !rouctiit" $or these tires at ake$ront Manu$acturin%(

c. 'hat is the !ercent chan%e in multi$actor !rouctiit" i$ ok can reuce the ener%" bill b" 71000 !er a" without cuttin% !rouction or chan%in% an" other in!uts(

. Problem 1.11 Munson Per$ormance Auto )nc. moi$ies 3/* autos !er "ear. -he mana%er+ Aam Manson+ is intereste in obtainin% a measure o$ oerall !er$ormance. He has aske "ou to !roie him with a multi$actor measure o$ last "ear:s !er$ormance as a benchmark $or $uture com!arison. ;ou hae assemble the $ollowin% ata5 8esource in!uts labor 10+000 hours+ *00 sus!ension an en%ine moi$ication kits+ an ener%" 100+000 kilowatt hours. Aera%e labor cost last "ear was 7&0 !er hour+ kit costs 71+000 each+ an ener%" 73 !er kilowatthour. 'hat o "ou tell Mr. Manson(

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9. Problem &.2 8an%a 8amasesh is the o!erations mana%er $or a $irm that is tr"in% to ecie which one o$ $our countries it shoul research $or !ossible outsourcin% !roiers. -he $irst ste! is to select a countr" base on cultural risk $actors+ which are critical to eentual business success with the !roier. 8an%a has reiewe outsourcin% !roier irectors an $oun that the hour countries in the table that $ollows hae an am!le number o$ !roiers $rom which the" can choose. -o the ai in the countr" selection s!ur+ he has enliste the ai o$ a cultural ex!ert+ ualit"+ with 0.&= 8eli%ious+ with 0.1= )niiualism+ with 0.1= -ime+ with 0.1 an ?ncertaint"+ with 0.1. ?sin% the $actorratin% metho+ which countr" shoul 8an%a select(

. Problem &.11 'alker Accountin% So$tware is markete to small accountin% $irms throu%hout the ?.S an Canaa. Owner @eor%e 'alker has ecie to outsource the com!an":s hel! esk an is consierin% three !roiers5 Manila Call Center Phili!!inesB+ elhi Serices )niaB+ an Moscow ,ell 8ussiaB. -he $ollowin% table summaries

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the ata 'alker has assemble. 'hich outsourcin% $irm has the best ratin%( Hi%her wei%hts im!l" im!ortance an hi%her ratin%s im!l" more esirable !roiersB

@. Problem 3.3 raw the actiit"onnoe AODB !roEect network associate with the $ollowin% actiities $or Carl ,etterton:s Construction !roEect. How lon% shoul it take Carl an his team to com!lete this !roEect( 'hat are the critical !ath actiities(

H. Problem 3.2 a. 8e$er to table in Problem 3.F. raw the AOD network $or construction actiit".

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). Problem 3.11 ae letcher See 3.10B was able to etermine the actiit" times $or constructin% his laser scannin% machine. letcher woul like to etermine 9S+ 9+ S+  an slack $or each actiit". -he total !roEect com!letion time an the critical !ath shoul also be etermine.

<. Problem 3.14 Gelle Car!et an -rim installs car!et in commercial o$$ices. Peter Gelle has been er" concerne with the amount o$ time it took to com!lete seeral recent Eobs. Some o$ his workers are er" unreliable. A list o$ actiities an their o!timistic

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com!letion time+ the most likel" com!letion time+ an the !essimistic com!letion time all in a"sB $or a new contract are %ien in the table.

a. b. c. .

etermine the ex!ecte com!letion time an ariance $or each actiit". etermine the total !roEect com!letion time an the critical !ath $or the !roEect. etermine 9S+ 9+ S+  an slack $or each actiit". 'hat is the !robabilit" that Gelle Car!et an -rim will $inish the !roEect in 40 a"s or less(

G. Problem 3.&0 eelo!ment o$ ersion &.0 o$ a !articular accountin% so$tware !rouct is bein% consiere b"
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a. 'hat is the !roEect com!letion ate( b. 'hat is the total cost reIuire $or com!letin% this !roEect ion the normal time( c. )$ "ou wish to reuce the time reIuire to com!lete this !roEect b" 1 week+ which actiit" shoul be crashe+ an how much will this increase the cost( . 'hat is the maximum time that can be crashe( How much woul costs increase(

. 4.1 -he $ollowin% %ies the number o$ !ints o$ t"!e , bloo use at 'oolawn Hos!ital in the !ast  weeks5

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a. orecast the eman $or the week o$ October 1& usin% a 3week moin% aera%e. b. ?se a 3week wei%hte moin% aera%e+ with wei%hts o$ 0.1+ 0.3+ an 0.+ usin% 0. $or the most recent week. orecast eman $or the week o$ October 1&. c. Com!ute the $orecastin% $or the week o$ October 1& usin% ex!onential smoothin% with a $orecast $or Au%ust 31 o$ 30 an JK 0.&.

M. Problem 4.4 A check!rocessin% center uses ex!onential smoothin% to $orecast the number o$ incomin% checks each month. -he number o$ checks receie in
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D. Problem 4.* -he Carbonale Hos!ital is consierin% the !urchase o$ a new ambulance. -he ecision will rest !artl" on the antici!ate milea%e to be rien next "ear. -he miles rien urin% the !ast * "ears are below5

a. orecast the milea%e $or the next "ear  th "earB usin% a &"ear moin% aera%e. b. in the MA base on the &"ear moin% aera%e+  Hint: You will have only 3 years of matched dataB c. ?se a wei%hte &"ear moin% aera%e with wei%hts o$ 0.4 an 0. to $orecast next "ear:s milea%e. -he wei%ht o$ 0. is $or the most recent "ear.B 'hat MA results $rom usin% this a!!roach to $orecastin%(  Hint: You will have only 3 years of matched data.) . Com!ute the $orecast $or "ear  usin% ex!onential smoothin%+ an initial $orecast $or "ear 1 o$ 3+000 miles+ an JK 0.*.

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O. Problem 4.2 enoo uses the LF1 chi! in some o$ its la!to! com!uters. -he !rices $or the chi! urin% the !ast 1& months were as $ollows5

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a. ?se a &month moin% aera%e on all the ata an !lot the aera%es an !rices. b. ?se a 3month moin% aera%e an a the 3month !lot to the %ra!h create in !art aB. c. 'hich is better usin% the mean absolute eiationB5 the &month aera%e or the 3month aera%e( . Com!ute the $orecasts $or each month usin% ex!onential smoothin%+ with an initial $orecast $or
P. Problem 4.1F Consier the $ollowin% actual A tB an $orecast  tB eman leels $or a commercial multiline tele!hone at O$$ice Max5

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-he $irst $orecast+  1+ was erie b" obserin% A 1 an settin%  1 eIual to A1. SubsIuent $orecast aera%es were erie b" ex!onential smoothin%. ?sin% the ex!onential smoothin% metho+ $in the $orecast $or time !erio *.  Hint: You need to first find the smoothing constant, J )

>. Problem 4.&3 Sales o$ Iuilt coers at ,us ,anis:s e!artment store in Carbonale oer the !ast "ear are shown below. Mana%ement !re!are a $orecast usin% a combination o$ ex!onential smoothin% an its collectie Eu%ment $or the 4 months March+ A!ril+ Ma"+ an
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a. Com!ute MA an MAP9 $or mana%ement:s techniIue. b. o mana%ement:s results out!er$orm i.e. hae smaller MA an MAP9 thanB a naNe $orecast( c. 'hich $orecast o "ou recommen+ base on lower $orecast error(

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