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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, 4.5, 4.9 and 4.11, pages140-141.
Problems: 4.1: The following gives the number of pints of type A blood used at
Woodlawn Hospital in the past 6 weeks:
a) Forecastthe demand for the week of October12 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. Forecastdemand for the week of October12.
c) Compute the forecast for the week of October12 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) Forecastthe mileage for next year using a 2-year moving average.
b) Find the MAD based on the 2-year moving average forecastin 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

2. from using this approachto 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
Problems: 4.9: Dell uses the CR5 chip in some of its laptop computers. The prices
for the chip during the past12 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 constantof 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?
BSOP 330 Week 2 Lab Assignments Chapter Four Problems 4.23, 4.27, 4.33,
and 4.35
Chapter Four Problems 4.23, 4.27, 4.33, and4.35.
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 forecastdo you recommend, based on lower forecasterror?

3. 4.33
a) Forecastthe 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?
BSOP 330 Week 2 SouthwesternCasestudy
DiscussionQuestions
1. Develop a forecasting model, justifying its selection over other techniques, and
project attendance through 2007.
2. What revenues are to be expected in 2006 and 2007?
3. Discuss the school’s options.
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. Stockoutcostof lost sales is $100 per unit. Inventory holding
costis $20 per unit per month. Ignore any idle-time costs. Theplan is called plan
A.
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 costof hiring additional workers is

4. $5,000 per 100 units. The costof 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, stockoutcosts, and holding
costs are provided in Problem 13.3:
 Plan C: Keep a stable workforce by maintaining a constant production rate
equal to the average requirements and allow varying inventory level
 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
1. a) Assuming stockoutcosts forlost 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 costbasis:
 Plan A: Produceat a steady rate (equal to minimum requirements) of 1,000
units per month and subcontractadditional units at a $60 per unit premium
cost.
 Plan B: Vary the workforce, which performs at a current productionlevel of
1,300 units per month. The costof hiring additional workers is $3,000 per
100 units produced. Thecostof layoffs is $6,000 per 100 units cut back.
Chapter 13 problems 13.21:
Forrester and Cohen is a small accounting firm, managed by JosephCohen 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 basepay as his employees.)
Cohen strongly discourages any CPA from working (billing) more than 240 hours
in any given month. The demand for billable hours for the firm over the next 6
months is estimated below:

5. 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?
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?
Chapter 12, problems 12.5
William Beville’s computer training school, in Richmond, stocks workbooks with
the following characteristics:
Demand ,500 units/year
Ordering costS = $25/order
Holding costH = $4/unit/year

6. 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 connectorat its central warehouse for
supplying field service offices. The yearly demand for these connectors is 15,000
units. Southeastern estimates its annual holding costfor this item to be $25 per
unit. The costto 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.
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 microprocessorsinto refrigerators and other home appliances. One of
the components has an annual demand of 250 units, and this is constant throughout
the year. Carrying costis 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) Supposethat the ordering costis 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 costwould have to be.
BSOP 330 Week 4 Quiz
1. Question : Which of the following statements regarding Amazon.com is false?
Student Answer:

7. The company was opened by Jeff Bezos in 1995.
The company was founded as, and still is, a virtual retailer with no inventory.
The company is now a world-class leader in warehouse management and
automation.
The company uses both United Parcel Service and the U.S. PostalService as
shippers.
Amazon obtains its competitive advantage through inventory management.
2. Question : Which of the following is a function of inventory?
Student Answer:
to decouple or separate parts of the production process
to decouple the firm from fluctuations in demand and provide a stockof goods that
will provide a selection for customers
to take advantage of quantity discounts
to hedge against inflation
All of the above are functions of inventory.
3. Question : Which of the following statements regarding the production order
quantity model is true?
Student Answer:
It applies only to items produced in the firm’s own productiondepartments.
It relaxes the assumption that all the order quantity is received at one time.
It relaxes the assumption that the demand rate is constant.
It minimizes the total productioncosts.
It minimizes inventory.
4. Question : The purposeof safety stockis to
Student Answer:
replace failed units with good ones.

8. eliminate the possibility of a stockout.
eliminate the likelihood of a stockoutdue to erroneous inventory tally.
control the likelihood of a stockoutdue to the variability of demand during lead
time.
protect the firm from a suddendecrease in demand.
BSOP 330 Week 4 SouthwesternCasestudy Printing companies Programs
and Inserts
SouthwesternUniversity Case Study
1. Forthe programs, what are the EOQ’s for both printing companies? How
many orders of eachsize will be needed?
2. Forthe inserts, what are the EOQ’s for both printing companies? How
many orders of eachsize will be needed?
3. Using the EOQ’s above and volume order information provided, what will
be the costof 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 costof the programs and inserts if they are purchased from First
Printing.
BSOP 330 Week 5 Homework Problems MaterProduction Schedule Problem
1, 2 and 3
BSOP330 MasterPlanning, Week 5, Problem 1
MASTER PRODUCTIONSCHEDULE
MAKE-TO-STOCK
Beginning PAB prior to week number one is 500.
If the forecastis larger than the bookorders, complete the MPS using the forecast
demand. If the booked orders is larger than the forecastcomplete 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.

9. 1. Complete the MPS due line and the MPS released line.
2. Complete the PAB line.
3. Complete the ATP line.
BSOP MasterPlanning, Week 5 Assignment, Problem Two
Make-to-StockMPS
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 bookorders, 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 MasterPlanning, Week 5, Problem 3
ForecastDisaggregation
ProductFamily Blenders
Model Number
Percent of the Annual Forecast
B-100
10.00%
B-200
7.00%

10. B-300
25.00%
B-400
30.00&
B-500
12.00%
B-600
16.00%
Total
100.00%
Note: the total percentage must equal exactly 100%.
If the aggregate forecast for the family of blenders for the month of September is
5,000 units, complete the chart below.
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.
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.

11. 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
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.

12. customer orders.
warehouse orders.
BSOP 330 Week 6 Lab Assignments Chapter 14, problems 14.1, 14.3,14.9,
14.13
Chapter 14, problems 14.1
You have developed the following simple productstructure 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 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) Constructa productstructure. Identify all levels, parents, and components.
b) b) Prepare a time-phased productstructure.
Chapter 14, problems 14.9
As the productionplanner for Gerry CookProducts, 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 CookProducts, 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 productstructure
for the bracket. b) In what week do you need to start the castings?
Chapter 14, problems 14.13

13. 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.
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 costof the Chiefs plan. Do you need to implement the
Chief’s plan or can the current staff handle the load? Explain your thinking
Question 4: From the data in the case, determine the schools current costto 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.
BSOP 330 Week 7 Lab Assignments Chapter 16, problems 16.1, 16.3,16.5,
and 16.9 (pages 640-641)
Chapter 16, problems 16.1, 16.3, 16.5, and16.9 (pages 640-641)
16.1 Leblanc Electronics, Inc., in Nashville, produces short runs of custom
airwave scanners for the defense industry. You have been askedby the owner,
Larry Leblanc, to reduce inventory by introducing a kanban system. After
severalhours of analysis, you developthe following data for scanner
connectors usedin one work cell. How many kanbans do you need for this
connector? Dailydemand 1,000 connectors Leadtime 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 assemblylines. Determine the size of the kanban
for subassemblies andthe number of kanbans needed.
16.5 Discount-Mart, a major EastCoastretailer, wants to determine the
economic order quantity (see Chapter 12 for EOQ formulas) for its halogen
lamps. It currently buys all halogenlamps from Specialty Lighting

14. Manufacturers, in Atlanta. Annual demand is 2,000 lamps, ordering costper
order is $30, annual carrying costper lamp is $12. a) What is the
EOQ? b) What are the total annual costs ofholding and ordering (managing)
this inventory? c) How many orders should Discount-Martplace with
SpecialtyLighting per year?
16.9 Given the following information about a product, at Phyllis Simon’s firm,
what is the appropriate setup time?
BSOP 330 Week 7 Quiz
1. (TCOs 5 & 12) Manufacturing cycle time is bestdefined 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 productexit.
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.
supportfor 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

15. Shigeo Shingo
None of the above
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 producein 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 producein small lots.
BSOP 330 MasterPlanning | All Weeks DiscussionQuestions
BSOP 330 Master Planning Week 1 How master planning affect overall
organization Discussion Question1
BSOP 330 Master Planning Week 1 Planning Horizons Discussion Question 2
BSOP 330 Master Planning Week 2 forecastseasonalproducts withoutremoving
seasonalvariations Discussion Question 2
BSOP 330 Master Planning Week 2 Which forecasterror measuring tool is the
best Discussion Question 1
BSOP 330 Master Planning Week 3 Aggregate Planning in Services Discussion
Question 2
BSOP 330 Master Planning Week 3 Aggregate Planning Strategy Discussion
Question 1
BSOP 330 Master Planning Week 4 Inventory Management Discussion Question 1
BSOP 330 Master Planning Week 4 Inventory Models Discussion Question 2
BSOP 330 Master Planning Week 5 Master Scheduling Time Fences Discussion
Question 1
BSOP 330 Master Planning Week 5 Overloaded Master Schedule Discussion
Question 2
BSOP 330 Master Planning Week 6 DRP and ERP Discussion Question 2
BSOP 330 Master Planning Week 6 Material Requirements Planning Discussion
Question 1
BSOP 330 Master Planning Week 7 JITin Services Discussion Question 2
BSOP 330 Master Planning Week 7 Why Lean Discussion Question 1