What are the basic controllable variables of a production planning problem? What are the four major costs?
> The MRP gross requirements for item A are shown here for the next 10 weeks. Lead time for A is three weeks and setup cost is $10. There is a carrying cost of $0.01 per unit per week. Beginning inventory is 90 units. Use the least total cost or the leas
> Audio Products, Inc., produces two AM/FM/CD players for cars. The radio/CD units are identical, but the mounting hardware and finish trim differ. The standard model fits intermediate and full-sized cars, and the sports model fits small sports cars.
> Product A is an end item and is made from two units of B and four of C. B is made of three units of D and two of E. C is made of two units of F and two of E. A has a lead time of one week. B, C, and E have lead times of two weeks, and D and F have lead t
> How have price and variety competition changed McDonald’s basic formula for success?
> As the degree of customer contact increases in a service system, what worker skills would be more important, clerical skills or diagnostic skills?
> Each unit of A is composed of one unit of B, two units of C, and one unit of D. C is composed of two units of D and three units of E. Items A, C, D, and E have on-hand inventories of 20, 10, 20, and 10 units, respectively. Item B has a scheduled rece
> Suppose that AlwaysRain Irrigation’s marketing department will undertake an intense ad campaign for the bronze sprinklers, which are more expensive but also more durable than the plastic ones. Forecast demand for the next four years is
> One unit of A is composed of two units of B and three units of C. Each B is composed of one unit of F. C is made of one unit of D, one unit of E, and two units of F. Items A, B, C, and D have 20, 50, 60, and 25 units of on-hand inventory, respectivel
> One unit of A is made of two units of B and one unit of C. B is made of three units of D and one unit of F. C is composed of three units of B, one unit of D, and four units of E. D is made of one unit of E. Item C has a lead time of one week; items A, B,
> One unit of A is made of one unit of B and one unit of C. B is made of four units of C and one unit each of E and F. C is made of two units of D and one unit of E. E is made of three units of F. Item C has a lead time of one week; items A, B, E, and F ha
> What phrase refers to the idea that every step in supply chain processes that deliver goods and services to the customer should create value?
> What is value stream mapping?
> One unit of A is made of two units of B, three units of C, and two units of D. B is composed of one unit of E and two units of F. C is made of two units of F and one unit of D. E is made of two units of D. Items A, C, D, and F have one-week lead times; B
> One unit of A is made of three units of B, one unit of C, and two units of D. B is composed of two units of E and one unit of D. C is made of one unit of B and two units of E. E is made of one unit of F. Items B, C, E, and F have one-week lead times; A a
> Consider a department store. Which departments probably should not be located near each other? Would any departments benefit from close proximity?
> Big10Sweaters.com is a new company started last year by two recent college graduates. The idea behind the company was simple. It will sell premium logo sweaters for Big Ten colleges with one major, unique feature. This unique feature is a special large m
> What category of planning covers a period from a day to six months, with daily or weekly time increments?
> Major operations and supply planning activities can be grouped into categories based on the relevant time range of the activity. What time range category does sales and operations planning fit into?
> What strategy do the following organizations seem to use to manage customer-introduced variability? a. EBay b. Ritz-Carlton Hotels c. New airline check-in procedures
> List some practical limits to economies of scale; that is, when should a plant stop growing?
> The essence of yield management is the ability to manage what?
> In a yield management system, pricing differences must appear logical and justified to the customer. The basis for this justification is commonly called what?
> Under what type of demand is yield management most effective?
> The widespread scientific application of yield management began within what industry?
> Refer to Example 14.1 as the basis for this problem. Meritor hires a team of consultants. The consultants suggest a partial robotic automation, as well as an increase in safety stock to 12.5 percent. Meritor implements these suggestions. The result is an
> How would you show a pull system in VSM Symbols between the blanking and CNC stages of the bolt manufacturing solved problems?
> Which of the four costs relevant to aggregate production planning is the most difficult to accurately measure?
> List at least three of the four costs relevant to the aggregate production plan.
> What is the term for a more complex production strategy that combines approaches from more than one basis strategy?
> In the agriculture industry, migrant workers are commonly employed to pick crops ready for harvest. They are hired as needed and are laid off once the crops are picked. This approach is made necessary by the realities of the industry. Which production p
> Plan production for the next year. The demand forecast is: spring, 20,000; summer, 10,000; fall, 15,000; winter, 18,000. At the beginning of spring you have 70 workers and 1,000 units in inventory. The union contract specifies that you may lay off work
> Suppose you were the manager of a restaurant and you were told honestly that a couple eating dinner had just seen a mouse. What would you say to them? How would you recover from this service crisis?
> Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers
> What capacity problems are encountered when a new drug is introduced to the market?
> Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring, 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall, you currently have 30 worke
> Helter Industries, a company that produces a line of women’s bathing suits, hires temporaries to help produce its summer product demand. For the current four-month rolling schedule, there are three temps on staff and 12 full-time employ
> A bottling plant fills 2,400 bottles every two hours. The lead time is 40 minutes and a container accommodates 120 bottles. The safety stock is 10 percent of expected demand. How many kanban cards are needed?
> Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem. Use the example in the chapter as a guide (Plan 1). The monthly forecasts for Product X for January, February, and March a
> Shoney Video Concepts produces a line of video streaming servers that are linked to computers for storing movies. These devices have very fast access and large storage capacity. Shoney is trying to determine a production plan for the next 12 months.
> Alan Industries is expanding its product line to include three new products: A, B, and C. These are to be produced on the same production equipment, and the objective is to meet the demands for the three products using overtime where necessary. The deman
> Old Pueblo Engineering Contractors creates six-month “rolling” schedules, which are recomputed monthly. For competitive reasons (it would need to divulge proprietary design criteria, methods, and so on), Old Pueblo
> DAT, Inc., needs to develop an aggregate plan for its product line. Relevant data are The forecast for next year is Management prefers to keep a constant workforce and production level, absorbing variations in demand through inventory excesses and sh
> In what way does the time horizon chosen for an aggregate plan determine whether it is the best plan for the firm?
> Can a manufacturer have a service guarantee in addition to a product guarantee?
> What are the major differences between aggregate planning in manufacturing and aggregate planning in services?
> How would you apply yield management concepts to a barbershop? A soft drink vending machine?
> Refer to Exhibit 5.6. Why is it that the “critical zone” begins at a utilization rate of about 70 percent in a typical service operation? Draw upon your own experiences as either a customer or a server in common serv
> Transmissions are delivered to the fabrication line four at a time. It takes one hour for transmissions to be delivered. Approximately four vehicles are produced each hour, and management has decided that 50 percent of expected demand should be maintaine
> Define yield management. How does it differ from the pure strategies in production planning?
> How does forecast accuracy relate, in general, to the practical application of the aggregate planning models discussed in the chapter?
> Distinguish between pure and mixed strategies in production planning.
> You are the operations manager for a manufacturing plant that produces pudding food products. One of your important responsibilities is to prepare an aggregate plan for the plant. This plan is an important input into the annual budget process. The plan p
> Here are the data for the past 21 months for actual sales of a particular product: Develop a forecast for the fourth quarter using a three-quarter, weighted moving average. Weight the most recent quarter 0.5, the second most recent 0.25, and the third
> What category of forecasting techniques uses managerial judgment in lieu of numerical data?
> Could a service firm use production line approach or self-serve design and still keep a high customer focus (personal attention)? Explain and support your answer with examples.
> What is the term for forecasts used for making day-to-day decisions about meeting demand?
> What is the first step in CPFR?
> The Sun River beverage company is a regional producer of teas, exotic juices, and energy drinks. With an interest in healthier lifestyles, there has been an increase in demand for its sugar-free formulation. The final packing operation requires 13 tasks
> How many steps are there in collaborative planning, forecasting, and replenishment (CPFR)?
> What are some major capacity considerations in a hospital? How do they differ from those of a factory?
> Often times, firms will work with their partners across the supply chain to develop forecasts and execute production and distribution between the partners. What technique does this describe?
> When forecasting demand for new products, sometimes firms will use demand data from similar existing products to help forecast demand for the new product. What technique is this an example of?
> Which qualitative forecasting technique was developed to ensure the input from every participant in the process is weighted equally?
> What forecasting technique makes use of written surveys or telephone interviews?
> The following table shows predicted product demand using your particular forecasting method along with the actual demand that occurred. (Answers in Appendix D) a. Compute the tracking signal using the mean absolute deviation and running sum of forecast
> In this problem, you are to test the validity of your forecasting model. Here are the forecasts for a model you have been using and the actual demands that occurred: Use the method stated in the text to compute MAD and the tracking signal. Then, decide
> Behavioral scientists suggest that we remember events as snap shots, not movies. How would you apply this to designing a service?
> Not all the items in your office supply store are evenly distributed as far as demand is concerned, so you decide to forecast demand to help plan your stock. Past data for legal sized yellow tablets for the month of August are a. Using a three-week mo
> A supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transported five at a time. A fabrication center produces approximately 10 gauges per hour. It takes approximately two hours for the hou
> Assume an initial starting Ft of 300 units, a trend (Tt) of eight units, an alpha of 0.30, and a delta of 0.40. If actual demand turned out to be 288, calculate the forecast for the next period.
> The following table contains the number of complaints received in a department store for the first six months of operation. If a three-month moving average is used to smooth this series, what would have been the forecast for May? Month Complaints M
> Historical demand for a product is as follows. a. Using a simple four-month moving average, calculate a forecast for October. b. Using single exponential smoothing with α = 0.2 and a September forecast = 65, calculate a forecast for Octob
> Consider the example in Exhibit 5.5. Can you think of anything else you might do with that example that would be helpful to the ultimate decision maker? exhibit 5.5 Decision Tree Analysis Using Net Present Value Calculations Strong growth 0.550 $31
> Assume that your stock of sales merchandise is maintained based on the forecast demand. If the distributor’s sales personnel call on the first day of each month, compute your forecast sales by each of the three methods requested here.
> The number of cases of merlot wine sold by the Connor Owen winery in an eight-year period is as follows. Using an exponential smoothing model with an alpha value of 0.20, estimate the smoothed value calculated as of the end of year 8. Use the average d
> Actual demand for a product for the past three months was a. Using a simple three-month moving average, make a forecast for this month. b. If 300 units were actually demanded this month, what would your forecast be for next month? c. Using simple expon
> The following table contains the demand from the last 10 months. a. Calculate the single exponential smoothing forecast for these data using an α of 0.30 and an initial forecast (F1) of 31. b. Calculate the exponential smoothing with tren
> The following tabulations are actual sales of units for six months and a starting forecast in January. a. Calculate forecasts for the remaining five months using simple exponential smoothing with α = 0.2. b. Calculate MAD for the forecasts
> What do you think might be some barriers to the successful, effective use of the project management software packages discussed in the chapter?
> Under a kanban approach to lean manufacturing, order quantities should be as small as possible. For a part that is manufactured in-house, what part of its manufacturing process needs to be reduced to reduce the optimal order quantity for an item?
> Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note, the 1st quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec.
> The following are sales revenues for a large utility company for years 1 through 11. Forecast revenue for years 12 through 15. Because we are forecasting four years into the future, you will need to use linear regression as your forecasting method.
> Sales by quarter for last year and the first three quarters of this year were as follows. Using a procedure that you develop that captures the change in demand from last year to this year and also the seasonality in demand, forecast expected sales for
> Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of stereo speakers. He is uncertain whether the unit price of the product or the effects of increased marketing are
> The following are earnings per share for two companies by quarter from the first quarter three years ago through the second quarter of this year. Forecast earnings per share for the rest of this year and next year. Use exponential smoothing to forecast t
> Will the use of decision tree analysis guarantee the best decision for a firm? Why or why not? If not, why bother using it?
> Use regression analysis on deseasonalized demand to forecast next summer’s demand, given the following historical demand data. Actual Year Season Demand 2 years ago Spring 205 Summer 140 Fall 375 Winter 575 Last year Spring 475 Sum
> Tucson Machinery, Inc. manufactures numerically controlled machines, which sell for an average price of $0.5 million each. Sales for these NCMs for the past two years were as follows. a. Find a line using regression in Excel. b. Find the trend and seas
> The following table shows the past two years of quarterly sales information. Assume that there are both trend and seasonal factors and that the seasonal cycle is one year. Use time series decomposition to forecast quarterly sales for the next year.
> The sales data for two years are as follows. Data are aggregated with two months of sales in each “period.” a. Plot the data. b. Fit a simple linear regression model to the sales data. c. In addition to the regressio
> In some JIT systems, marked spaces on a table or the floor identify where material should be stored. Supplying operations are signaled to produce more when the space is empty. What are these spaces called?
> What is the service package of your college or university?
> Zeus Computer Chips, Inc. used to have major contracts to produce the Centrino-type chips. The market has been declining during the past three years because of the quad-core chips, which it cannot produce, so Zeus has the unpleasant task of forecasting n
> After using your forecasting model for six months, you decide to test it using MAD and a tracking signal. Here are the forecast and actual demands for the six-month period: a. Find the tracking signal. b. Decide whether your forecasting routine is acce
> Your manager is trying to determine what forecasting method to use. Based upon the following historical data, calculate the following forecast and specify what procedure you would utilize. a. Calculate the simple three-month moving average forecast for
> Harlen Industries has a simple forecasting model: Take the actual demand for the same month last year and divide that by the number of fractional weeks in that month. This gives the average weekly demand for that month. This weekly average is used as the
> A particular forecasting model was used to forecast a six-month period. Here are the forecasts and actual demands that resulted: Find the tracking signal and state whether you think the model being used is giving acceptable answers. Forecast Actual
> Here are the actual tabulated demands for an item for a nine-month period (January through September). Your supervisor wants to test two forecasting methods to see which method was better over this period. a. Forecast April through September using a thr
> What are some reasons for a plant to maintain a capacity cushion? How about a negative capacity cushion?
> Which phase of the generic development process involves construction and evaluation of multiple preproduction versions of the product?
