6. DEVRY BSOP 330 Week 1 Lab Assignment Problems 4.1,
4.5, 4.9 and 4.11, pages 140-141
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BSOP 330 Week 1 Lab Assignment Problems 4.1, 4.5, 4.9
and 4.11, pages 140-141
Problems: 4.1: The following gives the number of pints
of type A blood used at Woodlawn Hospital in the past 6
weeks:
a) Forecast the demand for the week of October 12 using
a 3-week moving average.
b) Use a 3-week weighted moving average, with weights
of .1, .3, and .6, using .6 for the most recent week.
Forecast demand for the week of October 12.
7. c) Compute the forecast for the week of October 12 using
exponential smoothing with a forecast for August 31 of
360 and α = .2.
Problems: 4.5: The Carbondale Hospital is considering
the purchase of a new ambulance. The decision will rest
partly on the anticipated mileage to be driven next year.
The miles driven during the past 5 years are as follows:
Year Mileage
1 3,000
2 4,000
3 3,400
4 3,800
5 3,700
a) Forecast the mileage for next year using a 2-year
moving average.
b) Find the MAD based on the 2-year moving average
forecast in part (a).(Hint: You will have only 3 years of
matched data.)
c) Use a weighted 2-year moving average with weights of
.4 and .6 to forecast next year’s mileage. (The weight of
.6 is for the most recent year.) What MAD results from
using this approach to forecasting? (Hint: You will have
only 3 years of matched data.)
d) Compute the forecast for year 6 using exponential
smoothing, an initial forecast for year 1 of 3,000 miles,
and α = .5
8. Problems: 4.9: Dell uses the CR5 chip in some of its
laptop computers. The prices for the chip during the
past 12 months were as follows:
a) Use a 2-month moving average on all the data and
plot the averages and the prices
b) Use a 3-month moving average and add the 3-month
plot to the graph created in part (a).
c) Which is better (using the mean absolute deviation):
the 2-month average or the 3-month average?
d) d) Compute the forecasts for each month using
exponential smoothing, with an initial forecast for
January of $1.80. Use α = .1, then α = .3, and finally α = .5.
Using MAD, which α is the best?
Problems: 4.11
Data collected on the yearly registrations for a Six Sigma
seminar at the Quality College are shown in the
following table:
a) Use exponential smoothing with a smoothing constant
of 0.3 to forecast the registrations at the seminar given
in Problem 4.10. To begin the procedure, assume that
the forecast for year 1 was 5,000 people signing up.
b) What is the MAD?
9. DEVRY BSOP 330 Week 2 Lab Assignments Chapter Four
Problems 4.23, 4.27, 4.33, and 4.35
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BSOP 330 Week 2 Lab Assignments Chapter Four
Problems 4.23, 4.27, 4.33, and 4.35
4.23
a) Compute MAD and MAPE for management’s technique
b) Do management’s results outperform (i.e., have
smaller MAD and MAPE than) a naive forecast?
c) Which forecast do you recommend, based on lower
forecast error?
10. 4.33
a) Forecast the number of transistors to be made next
year, using linear regression.
b) Compute the mean squared error (MSE) when using
linear regression.
c) Compute the mean absolute percent error (MAPE).
4.35
a) Use the model to predict the selling price of a house
that is 1,860 square feet.
b) A 1,860-square-foot house recently sold for $95,000.
Explain why this is not what the model predicted.
c) If you were going to use multiple regression to
develop such a model, what other quantitative variables
might you include?
d) What is the value of the coefficient of determination
in this problem?
11. DEVRY BSOP 330 Week 2 Southwestern Case study
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BSOP 330 Week 2 Southwestern Case study
1. Develop a forecasting model, justifying its selection
over other techniques, and project attendance through
2007.
12. DEVRY BSOP 330 Week 3 Lab Assignments Chapter 13
problems 13.3, 13.5, 13.9, 13.21
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BSOP 330 Week 3 Lab Assignments Chapter 13
problems 13.3, 13.5, 13.9, 13.21
Chapter 13 problems 13.3:
The president of Hill Enterprises, Terri Hill, projects the
firm’s aggregate demand requirements over the next 8
months as follows:
Her operations manager is considering a new plan,
which begins in January with 200 units on hand.
Stockout cost of lost sales is $100 per unit. Inventory
holding cost is $20 per unit per month. Ignore any idle-
time costs. The plan is called plan A.
13. Plan A: Vary the workforce level to execute a “chase”
strategy by producing the quantity demanded in the
prior month. The December demand and rate of
production are both 1,600 units per month. The cost of
hiring additional workers is $5,000 per 100 units. The
cost of laying off workers is $7,500 per 100 units.
Evaluate this plan.
Chapter 13 problems 13.5:
Hill is now considering plan C. Beginning inventory,
stockout costs, and holding costs are provided in
Problem 13.3:
a) Plan C: Keep a stable workforce by maintaining a
constant production rate equal to the average
requirements and allow varying inventory levels.
b) Plot the demand with a graph that also shows
average requirements. Conduct your analysis for
January through August.
Chapter 13 problems 13.9:
Mary Rhodes, operations manager at Kansas Furniture,
has received the following estimates of demand
requirements:
July Aug. Sept. Oct. Nov. Dec.
1,000 1,200 1,400 1,800 1,800 1,600
14. a) Assuming stockout costs for lost sales of $100 per
unit, inventory carrying costs of $25 per unit per month,
and zero beginning and ending inventory, evaluate these
two plans on an incremental cost basis:
• Plan A: Produce at a steady rate (equal to minimum
requirements) of 1,000 units per month and subcontract
additional units at a $60 per unit premium cost.
• Plan B: Vary the workforce, which performs at a
current production level of 1,300 units per month. The
cost of hiring additional workers is $3,000 per 100 units
produced. The cost of layoffs is $6,000 per 100 units cut
back.
b) Which plan is best and why?
Chapter 13 problems 13.21:
Forrester and Cohen is a small accounting firm,
managed by Joseph Cohen since the retirement in
December of his partner Brad Forrester. Cohen and his 3
CPAs can together bill 640 hours per month. When
Cohen or another accountant bills more than 160 hours
per month, he or she gets an additional “overtime” pay
of $62.50 for each of the extra hours: This is above and
beyond the $5,000 salary each draws during the month.
(Cohen draws the same base pay as his employees.)
Cohen strongly discourages any CPA from working
(billing) more than 240 hours in any given month. The
15. demand for billable hours for the firm over the next 6
months is estimated below:
Month Estimate of Billable Hours
Jan 600
Feb 500
Mar 1000
Apr 1200
May 650
Jun 590
Cohen has an agreement with Forrester, his former
partner, to help out during the busy tax season, if
needed, for an hourly fee of $125. Cohen will not even
consider laying off one of his colleagues in the case of a
slow economy. He could, however, hire another CPA at
the same salary, as business dictates.
Refer to the CPA firm in Problem 13.20. In planning for
next year, Cohen estimates that billable hours will
increase by 10% in each of the 6 months. He therefore
proceeds to hire a fifth CPA. The same regular time,
overtime, and outside consultant (i.e., Forrester) costs
still apply.
a) Develop the new aggregate plan and compute its
costs.
b) Comment on the staffing level with five accountants.
Was it a good decision to hire the additional accountant?
16. DEVRY BSOP 330 Week 4 Lab Assignments Chapter 12,
problems 12.1, 12.5, 12.9, 12.15
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BSOP 330 Week 4 Lab Assignments Chapter 12,
problems 12.1, 12.5, 12.9, 12.15
Chapter 12, problems 12.1
L. Houts Plastics is a large manufacturer of injection-
molded plastics in North Carolina. An investigation of
the company’s manufacturing facility in Charlotte yields
the information presented in the table below. How
would the plant classify these items according to an ABC
classification system?
17. Chapter 12, problems 12.5
William Beville’s computer training school, in
Richmond, stocks workbooks with the following
characteristics:
Demand ,500 units/year
Ordering cost S = $25/order
Holding cost H = $4/unit/year
a) Calculate the EOQ for the workbooks.
b) What are the annual holding costs for the workbooks?
c) What are the annual ordering costs?
Chapter 12, problems 12.9
Southeastern Bell stocks a certain switch connector at
its central warehouse for supplying field service offices.
The yearly demand for these connectors is 15,000 units.
Southeastern estimates its annual holding cost for this
item to be $25 per unit. The cost to place and process an
order from the supplier is $75. The company operates
300 days per year, and the lead time to receive an order
from the supplier is 2 working days.
a) Find the economic order quantity.
b) Find the annual holding costs.
18. c) Find the annual ordering costs.
d) What is the reorder point?
Chapter 12, problems 12.15
M. Cotteleer Electronics supplies microcomputer
circuitry to a company that incorporates
microprocessors into refrigerators and other home
appliances. One of the components has an annual
demand of 250 units, and this is constant throughout the
year. Carrying cost is estimated to be $1 per unit per
year, and the ordering cost is $20 per order.
a) To minimize cost, how many units should be ordered
each time an order is placed?
b) How many orders per year are needed with the
optimal policy?
c) What is the average inventory if costs are minimized?
d) Suppose that the ordering cost is not $20, and
Cotteleer has been ordering 150 units each time an
order is placed. For this order policy (of ) to be optimal,
determine what the ordering cost would have to be.
19. DEVRY BSOP 330 Week 4 Quiz
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BSOP 330 Week 4 Quiz
20. DEVRY BSOP 330 Week 4 Southwestern Case study
Printing companies Programs and Inserts
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BSOP 330 Week 4 Southwestern Case study Printing
companies Programs and Inserts
1. For the programs, what are the EOQ's for both
printing companies? How many orders of each size will
be needed?
2. For the inserts, what are the EOQ's for both printing
companies? How many orders of each size will be
needed?
21. 3. Using the EOQ's above and volume order information
provided, what will be the cost of the programs and
inserts if they are purchased from Quality Printing
4. Using the EOQ's above and volume order information
provided, what will be the cost of the programs and
inserts if they are purchased from First Printing.
22. DEVRY BSOP 330 Week 5 Homework Problems Mater
Production Schedule Problem 1, 2 and 3
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BSOP 330 Week 5 Homework Problems Mater
Production Schedule Problem 1, 2 and 3
MASTER PRODUCTION SCHEDULE
MAKE-TO-STOCK
Beginning PAB prior to week number one is 500.
If the forecast is larger than the book orders, complete
the MPS using the forecast demand. If the booked orders
is larger than the forecast complete the MPS using the
booked orders
Lead-time for MPS releases is one week.
All MPS releases must be in lot sizes of 250 units.
Period order coverage is one period.
1. Complete the MPS due line and the MPS released line.
2. Complete the PAB line.
23. 3. Complete the ATP line.
BSOP Master Planning, Week 5 Assignment, Problem
Two
Make-to-Stock MPS
GIVENS FOR THE MPS PROBLEM:
1. Beginning on-hand inventory prior to week one is 200
units.
2. If the forecast is larger than the book orders, complete
the MPS using the forecast demand. If the booked orders
is larger than the forecast complete the MPS using the
booked orders
3. Lead-time for MPS planned orders is one week.
4. All MPS releases must be in lot sizes of 200 or
multiples of 200.
REQUIRED:
Complete the MPS due and MPS planned lines.
Calculate the new projected on-hand inventory line.
Calculate the ATP line for the entire MPS.
BSOP330 Master Planning, Week 5, Problem 3
Forecast Disaggregation
Product Family Blenders
Model Number
Percent of the Annual Forecast
B-100
10.00%
B-200
7.00%
B-300
25.00%
B-400
25. DEVRY BSOP 330 Week 5 Quiz
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BSOP 330 Week 5 Quiz
1.Question :(TCO 9, 10, & 12) The MPS
Student Answer:
must sum up to the total in the production plan.
can have any quantity necessary to meet customer
demand.
is only used in make-to-stock manufacturing.
26. does not have to be tested for capacity limits.
2.Question :(TCO 12) In an assemble-to-order MPS, the
items stocked in inventory are
Student Answer:
finished goods.
component parts.
raw materials.
sub-assemblies.
3.Question :(TCOs 9, 11, & 12) Which one of the
following pieces of information would be more useful to
the order entry department in a make-to-stock
company?
Student Answer:
The planned order receipt file
The planned MPS released quantity file
The available to promise file
27. The balance of the forecast quantity
4.Question :(TCO 12) A forecast
Student Answer:
is always 100 percent correct.
will get better and better the more time and money you
spend.
is a time prediction of the future based on the past.
is a monthly project that marketing loves to do.
5.Question :(TCO 10 & 12) In job shop (make-to-order)
operations, the master production schedule is usually
expressed in
Student Answer:
end items.
modules.
kits.
customer orders.
29. DEVRY BSOP 330 Week 6 Lab Assignments Chapter 14,
Problems 14.1, 14.3, 14.9, 14.13
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BSOP 330 Week 6 Lab Assignments Chapter 14,
Problems 14.1, 14.3, 14.9, 14.13
You have developed the following simple product
structure of items needed for your gift bag for a rush
party for prospective pledges in your organization. You
forecast 200 attendees. Assume that there is no
inventory on hand of any of the items. Explode the bill of
material. (Subscripts indicate the number of units
required.)
Chapter 14, problems 14.3
The demand for subassembly S is 100 units in week 7.
Each unit of S requires 1 unit of T and 2 units of U. Each
30. unit of T requires 1 unit of V, 2 units of W, and 1 unit of
X. Finally, each unit of U requires 2 units of Y and 3 units
of Z. One firm manufactures all items. It takes 2 weeks to
make S, 1 week to make T, 2 weeks to make U, 2 weeks
to make V, 3 weeks to make W, 1 week to make X, 2
weeks to make Y, and 1 week to make Z.
a) Construct a product structure. Identify all levels,
parents, and components.
b) b) Prepare a time-phased product structure.
Chapter 14, problems 14.9
As the production planner for Gerry Cook Products, Inc.,
you have been given a bill of material for a bracket that
is made up of a base, two springs, and four clamps. The
base is assembled from one clamp and two housings.
Each clamp has one handle and one casting. Each
housing has two bearings and one shaft. There is no
inventory on hand.
Your boss at Gerry Cook Products, Inc., has just provided
you with the schedule and lead times for the bracket in
Problem 14.8. The unit is to be prepared in week 10. The
lead times for the components are bracket (1 week),
base (1 week), spring (1 week), clamp (1 week), housing
(2 weeks), handle (1 week), casting (3 weeks), bearing
(1 week), and shaft (1 week). a) Prepare the time-
phased product structure for the bracket. b) In what
week do you need to start the castings?
Chapter 14, problems 14.13
31. Electro Fans has just received an order for one thousand
20-inch fans due week 7. Each fan consists of a housing
assembly, two grills, a fan assembly, and an electrical
unit. The housing assembly consists of a frame, two
supports, and a handle. The fan assembly consists of a
hub and five blades. The electrical unit consists of a
motor, a switch, and a knob. The following table gives
lead times, on-hand inventory, and scheduled receipts.
32. DEVRY BSOP 330 Week 7 Case Study Final
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BSOP 330 Week 7 Case Study Final
Question 1. Which variations in demand for police
services should be considered in an aggregate plan for
resources? Which variations can be accomplished with
short-term scheduling adjustments?
Question 2. Evaluate the current staffing plan. What
does it cost? Are 26 officers sufficient to handle the
normal workload?
Question 3: Determine the cost of the Chiefs plan. Do you
need to implement the Chief's plan or can the current
staff handle the load? Explain your thinking
33. Question 4: From the data in the case, determine the
schools current cost to provide police services during
football games.
Question 5: There isn't any one right answer for this
question. This a critical thinking question. Based on
what you have read and the scheduling and costs you
put together, what do you see as alternatives for the
manning the schedule.
34. DEVRY BSOP 330 Week 7 Lab Assignments Chapter 16,
Problems 16.1, 16.3, 16.5, and 16.9
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BSOP 330 Week 7 Lab Assignments Chapter 16,
Problems 16.1, 16.3, 16.5, and 16.9
Chapter 16, problems 16.1, 16.3, 16.5, and 16.9 (pages
640-641)
16.1 Leblanc Electronics, Inc., in Nashville, produces
short runs of custom airwave scanners for the defense
industry. You have been asked by the owner, Larry
Leblanc, to reduce inventory by introducing a kanban
system. After several hours of analysis, you develop the
following data for scanner connectors used in one work
cell. How many kanbans do you need for this connector?
35. Daily demand 1,000 connectors
Lead time 2 days
Safety stock day
Kanban size 500 connectors
16.3
Chris Millikan Manufacturing, Inc., is moving to kan-
bans to support its telephone switching-board assembly
lines. Determine the size of the kanban for
subassemblies and the number of kanbans needed.
16.5
Discount-Mart, a major East Coast retailer, wants to
determine the economic order quantity (see Chapter 12
for EOQ formulas) for its halogen lamps. It currently
buys all halogen lamps from Specialty Lighting
Manufacturers, in Atlanta. Annual demand is 2,000
lamps, ordering cost per order is $30, annual carrying
cost per lamp is $12.
a) What is the EOQ?
b) What are the total annual costs of holding and
ordering (managing) this inventory?
c) How many orders should Discount-Mart place with
Specialty Lighting per year?
16.9
a) Given the following information about a product, at
Phyllis Simon’s firm, what is the appropriate setup time?
36. DEVRY BSOP 330 Week 7 Quiz
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BSOP 330 Week 7 Quiz
1. (TCOs 5 & 12) Manufacturing cycle time is best
defined as the (Points : 4)
length of the work shift, expressed in minutes per day.
time it takes a unit to move from one workstation to the
next.
time between the start of one unit and the start of the
next unit.
sum of all the task times to make one unit of a product.
time from raw materials receipt to finished product exit.
37. 2. (TCOs 5 & 12) The implementation of JIT offers
several advantages, including (Points : 4)
reduced throughput.
increase in variability to better respond to variable
demand.
decreased profit margins.
support for lean production.
increased work in process inventory.
3. (TCOs 5 & 12) Which of the following statements
regarding JIT in services is true? (Points : 4)
Restaurants do not use JIT layouts because they
interfere with the creation of a good servicescape.
Excess customer demand in services such as air travel is
met by dipping into safety stocks.
All of the JIT techniques for dealing with suppliers,
layout, inventory, and scheduling are used in services.
Scheduling is not relevant to the effective use of JIT in
services.
All of the above are false.
4. (TCO 12) Which of the following is the author of the
phrase, "Inventory is evil"? (Points : 4)
Poka Yoke
Pat "Keiretsu" Morita
Kanban Polka
Shigeo Shingo
None of the above
38. 5. (TCO 12) Great Lakes Barge and Baggage Company
makes, among other things, battery-operated bilge
pumps. Which of the following activities isnot part of
JIT? (Points : 4)
They communicate their schedules to suppliers.
They produce in long production runs to reduce the
impact of setup costs.
They use a pull system to move inventory.
They continuously work on reducing setup time.
They produce in small lots.
