Question: Eurotronics manufactures components for use in
Eurotronics manufactures components for use in small electronic products such as computers, CD players, and radios at plants in Belgium, Germany, and France. The parts are transported by truck to Hamburg, where they are shipped overseas to customers in Mexico, South America, the United States, and the Pacific Rim. The company has to reserve space on ships months and sometimes years in advance. This requires an accurate forecasting model. Following are the number of cubic feet of container space the company has used in each of the past 18 months:
Develop a forecasting model that you believe would provide the company with relatively accurate forecasts for the next year and indicate the forecasted shipping space required for the next 3 months.
> The Simple Simon Bakery produces fruit pies for freezing and subsequent sale. The bakery, which operates 5 days per week, 52 weeks per year, can produce pies at the rate of 64 pies per day. The bakery sets up the pie production operation and produces unt
> Given the following network and activity time estimates, determine the expected time and variance for each activity, and indicate the critical path:
> The Metropolitan Book Company purchases paper from the Atlantic Paper Company. Metropolitan produces magazines and paperbacks that require 1,215,000 pounds of paper per year. The cost per order for the company is $1,200; the cost of holding 1 pound of pa
> The concession stand at the Blacksburg High School stadium sells slices of pizza during soccer games. Concession stand sales are a primary source of revenue for high school athletic programs, so the athletic director wants to sell as much food as possibl
> The Impanema Restaurant stocks a red Brazilian table wine it purchases from a wine merchant in a nearby city. The daily demand for the wine at the restaurant is normally distributed, with a mean of 18 bottles and a standard deviation of 4 bottles. The wi
> The Fast Service Food Mart stocks frozen pizzas in a refrigerated display case. The average daily demand for the pizzas is normally distributed, with a mean of 8 pizzas and a standard deviation of 2.5 pizzas. A vendor for a packaged food distributor chec
> The Corner Drug Store fills prescriptions for a popular children’s antibiotic, amoxicillin. The daily demand for amoxicillin is normally distributed, with a mean of 200 ounces and a standard deviation of 80 ounces. The vendor for the pharmaceutical firm
> PM Computers in Problem 42 is considering purchasing monitors from an American manufacturer that would guarantee a lead time of 8 days, instead of the Taiwanese company. Determine the new reorder point, given this lead time, and identify the factors that
> PM Computers assembles personal computers from generic components. It purchases its color monitors from a manufacturer in Taiwan; thus, there is a long and uncertain lead time for receiving orders. Lead time is normally distributed, with a mean of 25 day
> The daily demand for Sunlight paint at the Rainbow Paint Store in East Ridge is normally distributed, with a mean of 26 gallons and a standard deviation of 10 gallons. The lead time for receiving an order of paint from the Sunlight distributor is 9 days.
> In Problem 39, the manager of the Uptown Bar and Grill has negotiated with the beer distributor for the lead time to receive orders to be a constant 3 days. What effect does this have on the reorder point developed in Problem 39 for a 90% service level?
> The Western Jeans Company purchases denim from Cumberland Textile Mills. The Western Jeans Company uses 35,000 yards of denim per year to make jeans. The cost of ordering denim from the textile company is $500 per order. It costs Western $0.35 per yard a
> The Columbus Civic Club is planning to put on a 5K race to raise money to build children’s playgrounds. The club has identified the following planning activities and time estimates: Construct the network for this project, identify the c
> The Uptown Bar and Grill serves Rainwater draft beer to its customers. The daily demand for beer is normally distributed, with an average of 18 gallons and a standard deviation of 4 gallons. The lead time required to receive an order of beer from the loc
> The Atlantic Paper Company produces paper from wood pulp ordered from a lumber products firm. The paper company’s daily demand for wood pulp is a constant 8,000 pounds. Lead time is normally distributed, with an average of 7 days and a standard deviation
> The amount of denim used daily by the Western Jeans Company in its manufacturing process to make jeans is normally distributed, with an average of 3,000 yards of denim and a standard deviation of 600 yards. The lead time required to receive an order of d
> Tracy McCoy is the office administrator for the department of management science at Tech. The faculty uses a lot of printer paper, and although Tracy is constantly reordering, paper frequently runs out. She orders the paper from the university central st
> Community Hospital orders latex sanitary gloves from a hospital supply firm. The hospital expects to use 40,000 pairs of gloves per year. The cost to order and to have the gloves delivered is $180. The annual carrying cost is $0.18 per pair of gloves. Th
> The 23,000-seat City Coliseum houses the local professional ice hockey, basketball, indoor soccer, and arena football teams, as well as various trade shows, wrestling and boxing matches, tractor pulls, and circuses. Coliseum vending annually sells large
> The office manager for the Gotham Life Insurance Company orders letterhead stationery from an office products firm in boxes of 500 sheets. The company uses 6,500 boxes per year. Annual carrying costs are $3 per box, and ordering costs are $28. The follow
> The bookstore at State University purchases from a vendor sweatshirts emblazoned with the school name and logo. The vendor sells the sweatshirts to the store for $38 apiece. The cost to the bookstore for placing an order is $120, and the carrying cost is
> The Fifth Quarter Bar buys Old World draft beer by the barrel from a local distributor. The bar has an annual demand of 900 barrels, which it purchases at a price of $205 per barrel. The annual carrying cost is 12% of the price, and the cost per order is
> The I-75 Carpet Discount Store has an annual demand of 10,000 yards of Super Shag carpet. The annual carrying cost for a yard of this carpet is $0.75, and the ordering cost is $150. Thecarpet manufacturer normally charges the store $8 per yard for the ca
> Lindsey Brinton is moving into a rental house near campus at the beginning of the new fall semester at Tech with three friends. Each of the four friends will have a bedroom that they can redecorate as they wish. Lindsey wants to wallpaper her room and pu
> A firm is faced with the attractive situation in which it can obtain immediate delivery of an item it stocks for retail sale. The firm has therefore not bothered to order the item in any systematic way. Recently, however, profits have been squeezed due t
> The Uptown Kiln is an importer of ceramics from overseas. It has arranged to purchase a particular type of ceramic pottery from a Korean artisan. The artisan makes the pottery in 120-unit batches and will ship only that exact number of units. The transpo
> The Spruce Creek Vegetable Farm produces organically grown greenhouse tomatoes that are sold to area grocery stores. The annual demand for Spruce Creek’s tomatoes is 270,000 pounds. The farm is able to produce 305,000 pounds annually. The cost to transpo
> The Summer Outdoor Furniture Company produces wooden lawn chairs. The annual demand from its store customers is 17,400 chairs per year. The transport and handling costs are $2,600 each time a shipment of chairs is delivered to stores from its warehouse.
> For homework Problem 30 in Chapter 15, the Tech power plant wants to keep a 7- to 10-day sup- ply of coal on hand at all times. It takes 3 days to transport coal by railroad from the coalfields, and the cost of shipping and handling coal by rail is $19.5
> Suntrek is a global manufacturer and supplier of denim jeans to apparel retailers around the world. It purchases baled cotton from its cotton producers in Arkansas, Texas, Georgia, and Mississippi and ships it to its warehouse at the port of Savannah, wh
> Eurotronics is a European manufacturer of electronic components. During the course of a year, it requires container cargo space on ships leaving Hamburg bound for the United States, Mexico, South America, and Canada. Annually, the company needs 160,000 c
> The Union Street Microbrewery makes 1220 Union beer, which it bottles and sells in its adjoining restaurant and by the case. It costs $1,700 to set up, brew, and bottle a batch of the beer. The annual cost to store the beer in inventory is $1.25 per bott
> The A-to-Z Office Supply Company is open from 8:00 A.M. to 6:00 p.M., and it receives 200 calls per day for delivery orders. It costs A-to-Z $20 to send out its trucks to make deliveries. The company estimates that each minute a customer spends waiting f
> The University Bookstore at Tech stocks the required textbook for Management Science 2405. The demand for this text is 1,200 copies per year. The cost of placing an order is $350, and the annual carrying cost is $2.75 per book. If a student requests the
> Seth and Levi Taylor are planning an anniversary party for their parents in December, and they want it to have a holiday theme. They have identified the following planning activities and time estimates: Construct the network for this project, identify th
> Videoworld is a discount store that sells color televisions. The annual demand for color television sets is 400. The cost per order from the manufacturer is $650. The carrying cost is $45 per set each year. The store has an inventory policy that allows s
> Hayes Electronics in Problem 1 assumed with certainty that the ordering cost is $450 per order and the inventory carrying cost is $170 per unit per year. However, the inventory model parameters are frequently only estimates that are subject to some degre
> The Laurel Creek Lawn Shop sells Fastgro Fertilizer. The annual demand for the fertilizer is 270,000 pounds. The cost to order the fertilizer from the Fastgro Company is $105 per order. The annual carrying cost is $0.25 per pound. The store operates with
> The Road King Tire store sells a brand of tires called the Roadrunner. The annual demand from the store’s customers for Roadrunner tires is 3,700. The cost to order tires from the tire manufacturer is $420 per order. The annual carrying cost is $1.75 per
> The Pacific Lumber Company and Mill processes 10,000 logs annually, operating 250 days per year. Immediately upon receiving an order, the logging company’s supplier begins delivery to the lumber mill, at a rate of 60 logs per day. The lumber mill has det
> Craftwood Furniture Company is a U.S.-based furniture manufacturer that offshored all of its actual manufacturing operations to China about a decade ago. It set up a distribution center in Hong Kong, from which the company ships its items to the United S
> In Problem 32 in Chapter 15, the supplier receives shipments of partially completed laptops from its manufacturing facility in Southeast Asia, which has maximum production rate of 200 units per day. Using the forecast of annual demand developed in that p
> Tara, an apparel store, has forecasted a sale of 100,000 meters of dress material for the next year. Its spinning mill can produce 500 meters of materials per day. The cost of setup per production run is C6,000. The store needs to use special materials t
> The Honda dealership at your city forecasted that it could sell around 500 cars in the next year. The annual carrying cost of a car is ¥500,000, and the ordering cost which involves order processing and transportation is ¥300,000. Once an order is made,
> The purchasing manager for the Atlantic Steel Company must determine a policy for ordering coal to operate 12 converters. Each converter requires exactly 5 tons of coal per day to operate, and the firm operates 360 days per year. The purchasing manager h
> A farm owner is going to erect a maintenance building with a connecting electrical generator and water tank. The activities, activity descriptions, and estimated durations are given in the following table: (Notice that the activities are defined not by n
> A furniture store produces tables and doors and sells them through its outlets across the country. The wood working machines are first set for producing tables and the produced tables are stocked for meeting the customers’ demand. Once enough tables are
> The Wood Valley Dairy makes cheese to supply to stores in its area. The dairy can make 250 pounds of cheese per day (365 days per year), and the demand at area stores is 180 pounds per day. Each time the dairy makes cheese, it costs $125 to set up the pr
> Hayes Electronics stocks and sells a particular brand of personal computer. It costs the firm $450 each time it places an order with the manufacturer for the personal computers. The cost of carrying one PC in inventory for a year is $170. The store manag
> Emily Andrews has invested in a science and technology mutual fund. Now she is considering liquidating and investing in another fund. She would like to forecast the price of the science and technology fund for the next month before making a decision. She
> The Bayside Fountain Hotel is adjacent to County Coliseum, a 24,000-seat arena that is home to the city’s professional basketball and ice hockey teams and that hosts a variety of concerts, trade shows, and conventions throughout the yea
> The Victory Plus Mutual Fund of growth stocks has had the following average monthly price for the past 10 months: Compute the exponentially smoothed forecast with a = .40, the adjusted exponential smoothing fore- cast with a = .40 and b = .30 and the lin
> The dean of the college of business at Tech has initiated a fund-raising campaign. One of the selling points he plans to use with potential donors is that increasing the college’s private endowment will improve its ranking among all bus
> The manager of the Bayville police department motor pool wants to develop a forecast model for annual maintenance on police cars, based on mileage in the past year and age of the cars. The following data have been collected for eight different cars: a. U
> In Problem 42, Infoworks believes its printer sales are also related to the average price of its printers. It has collected historical data on average printer prices for the past 10 years, as follows: a. Using Excel, develop the multiple regression equat
> Construct a Gantt chart for the following set of activities, and indicate the project completion time:
> Tech administrators believe their freshman applications are influenced by two variables: tuition and the size of the applicant pool of eligible high school seniors in the state. The following data for an 8-year period show the tuition rates (per semester
> The State of Virginia has instituted a series of standards of learning (SOL) tests in math, history, English, and science that all high school students must pass with a grade of 70 before they are allowed to graduate and receive their diplomas. The schoo
> The admission data for freshmen at Tech during the past 10 years are as follows: Tech’s admission objective is a class of 5,000 entering freshmen, and Tech wants to forecast the percentage of offers it will likely have to make to achiev
> The Port of Savannah is considering an expansion of its container terminal. The port has experienced the following container throughput during the past 12 years, expressed as TEUs (i.e., 20-foot equivalent units, a standard unit of measure for containers
> The Valley United Soccer Club has boys’ and girls’ travel soccer teams at all age levels up to 18 years. The club has been successful and grown in popularity over the years; however, an obstacle to its continued growth
> The Wellton Fund is a balanced mutual fund that includes a mix of stocks and bonds. Following are the year-end share prices of the fund and Dow Jones Industrial Average (DJIA) for a 20-year period: Develop a linear regression model for these data and for
> A cooking oil distributor distributes oil to major supermarkets in the region. Though a person’s daily consumption of oil seems to be almost the same, the distributor’s demand for oil fluctuates every month. The distri
> In Problem 48, one of the new products in the GreenClean line that Klorax is ready to introduce is an all-purpose cleaner, and Klorax is attempting to forecast what demand might be like 5 years into the future. However, it has no historical demand data t
> To take advantage of the burgeoning public interest in sustainability, Klorax has developed a non- synthetic line of natural cleaning products called GreenClean. One of the first sustainable products Klorax introduced was a natural cold-water detergent.
> The busiest time of the day at the Taco Town fast-food restaurant is between 11:00 A.M. and 2:00 p.M. Taco Town’s service is very labor dependent, and a critical factor for providing quick service is the number of employees on hand duri
> Liu and Fong is a global supplier of denim jeans for apparel companies around the world. Its supply chain includes cotton production in the United States, fabric manufacturing in Southeast Asia and the Pacific Rim; jeans manufacturing in the Far and Midd
> The consumer loan department at Central Union Bank and Trust wants to develop a forecasting model to help determine its potential loan application volume for the coming year. Because adjust- able-rate home mortgages are based on government long-term Trea
> Develop an adjusted exponential smoothing forecast model (a = .40 and b = .40) for the data in Problem 44 to forecast seat occupancy and compare its accuracy with the seasonally adjusted model developed in (a).
> Arrow Air is a regional East Coast airline that has collected data for the percentage of avail- able seats occupied on its flights for four quarters—(1) January–March, (2) April–June, (3) Julyâ&
> Develop an exponential smoothing model with a = .30 for the data in Problem 42 to forecast printer demand in year 11 and compare its accuracy to the linear trend line forecast developed in (a).
> Infoworks is a large computer discount store that sells computers and ancillary equipment and software in the town where State University is located. Infoworks has collected historical data on computer sales and printer sales for the past 10 years, as fo
> The Gametime Hat Company manufactures baseball caps that have various team logos in an assortment of designs and colors. The company has had monthly sales for the past 24 months as follows: Develop a forecast model using the method you believe best, and
> Apperson and Fitz is a chain of clothing stores that caters to high school and college students. It publishes a quarterly catalog and operates a Web site that features provocatively attired males and females. The Web site is very expensive to maintain, a
> The chairperson of the department of management at State University wants to forecast the number of students who will enroll in production and operations management (POM) next semester to determine how many sections to schedule. The chair has accumulated
> Employees at Precision Engine Parts Company produce parts according to exact design specifications. The employees are paid according to a piece-rate system, wherein the faster they work and the more parts they produce, the greater their chances for month
> Some members of management of the Fairface Cosmetics Firm believe that demand for its products is related to the promotional activities of local department stores where the cosmetics are sold. However, others in management believe that other factors, suc
> In Problem 36 in Chapter 6, KanTech Corporation ships electronic components in containers from seaports in Europe to U.S. ports, from which the containers are transported by truck or rail to inland ports and then transferred to an alternative mode of tra
> PAWV Power and Light has contracted with a –waste- disposal firm to have nuclear waste from its nuclear power plants in Pennsylvania disposed of at a—government—operated nuclear waste disposal site in
> Explain the numerical value of the slope of the linear regression equation in Problem 33.
> Develop a linear trend line model for the freshman applications data at State University in Problem 35. a. Does this forecast appear to be more or less accurate than the linear regression forecast developed in Problem 35? Justify your answer. b. Compute
> Administrators at State University believe that decreases in the number of freshman applications that they have experienced are directly related to tuition increases. They have collected the following enrollment and tuition data for the past decade: a.
> Compute the coefficient of determination for the data in Problem 33, and explain its meaning.
> The manager of Gilley’s Ice Cream Parlor needs an accurate forecast of the demand for ice cream. The store orders ice cream from a distributor a week ahead; if the store orders too little, it loses business, and if it orders too much, t
> Bell Inc. is a computer company that gets most of its component parts from suppliers in Southeast Asia, who ship to small warehouses called “revolvers” (for revolving inventory) near Bell’s main assem
> The DirectCast cable TV company is a national chain that services the small college town that is home to Tech, with a student population of almost 30,000. The company has generally been able to handle service calls and installations in the past, but a gr
> The Tech power plant burns coal and natural gas to generate steam and electricity for all campus buildings. The annual coal consumption at the plant has increased annually for the past 8 years due to an aggressive campus building program. The following t
> The Fastgro Fertilizer Company distributes fertilizer to various lawn and garden shops. The company must base its quarterly production schedule on a forecast of how many tons of fertilizer will be demanded from it. The company has gathered the following
> Suntrek is a global manufacturer and supplier of denim jeans to apparel retailers around the world. It purchases baled cotton around the world, ships it to its denim fabric factories, then to its denim jeans manufacturing facilities. Its cotton purchases
> A water station (1) is planned to supply a new city (13) with water through the current network of pipes and substations. The diagram below shows the water flow capacity of the different pipes of the current network in 1000 gallons per minute. Use Excel
> Bernice’s Pizza Restaurant opened the previous year, and in addition to sit-down restaurant service they filled take-out orders (picked up by customers) and some delivery orders using the owner’s car. The owner, Bernic
> A group of business students at Tech organized a student club called Prism to develop and disseminate content about business majors through a Web site they created and social media sites. Prism would like for the academic departments to use its Web site
> Carpet City wants to develop a means to forecast its carpet sales. The store manager believes that the store’s sales are directly related to the number of new housing starts in town. The manager has gathered data from county records on
> The manager of the Ramona Inn Hotel near Cloverleaf Stadium believes that how well the local Blue Sox professional baseball team is playing has an impact on the occupancy rate at the hotel during the summer months. Following are the number of victories f
> The Jersey Dairy Products Company produces cheese, which it sells to supermarkets and food- processing companies. Because of concerns about cholesterol and fat in cheese, the company has seen demand for its products decline during the past decade. It is
> Develop an exponential smoothing forecast with a = .20 for the demand data in Problem 1. Compare this forecast with the 3-month moving average computed in part (a) of Problem 1, using MAD, and indicate which forecast seems to be more accurate.
> RAP Computers assembles personal computers from generic parts it purchases at a discount, and it sells the units by phone orders it receives from customers responding to the company’s ads in trade journals. The business has developed an
> Aztec Industries has developed a forecasting model that was used to forecast during a 10-month period. The forecasts and actual demand were as follows: Measure the accuracy of the forecast by using MAD, MAPD, and cumulative error. Does the forecast metho
> The emergency room at the new Community Hospital selected every other week during the past 5 months to observe the number of patients during two parts of each week—the weekend (Friday through Sunday) and weekdays (Monday through Thursda
> The McDonald’s store at a busy mall has collected its last 10 months’ sales (in thousands of meal) data for its fast selling a la carte meal—The Feast McChicken. To provide consistent taste in chicken
