1.
2.
Weekly sales of copy paper at Cubicle Suppliers are in the table below. Compute a three-period
moving average and a four-period moving average for weeks 5, 6, and 7. Compute MAD for each
forecast. Which model is more accurate? Forecast week 8 with the more accurate method.
Week
Sales (cases)
1
17
2
21
3
27
4
31
5
19
6
17
7
21
Jim's department at a local department store has tracked the sales of a product over the last ten
weeks. Forecast demand using exponential smoothing with an alpha of 0.4, and an initial forecast
of 28.0. Calculate MAD and the tracking signal. What do you recommend?
Period
1
2
3
4
5
6
7
8
9
10
3.
Demand
24
23
26
36
26
30
32
26
25
28
Favors Distribution Company purchases small imported trinkets in bulk, packages them, and sells
them to retail stores. They are conducting an inventory control study of all their items. The
following data are for one such item, which is not seasonal.
a. Use trend projection to estimate the relationship between time and sales (state the equation).
b. Calculate forecasts for the first four months of the next year.
Month
Sales
4.
1
Jan
51
2
Feb
55
3
Mar
54
4
Apr
57
5
May
50
6
Jun
68
7
Jul
66
8
Aug
59
9
Sep
67
10
Oct
69
11
Nov
75
12
Dec
73
The quarterly sales for specific educational software over the past three years are given in the
following table. Compute the four seasonality factors and forecast for year 4
Quarter 1
Quarter 2
Quarter 3
Quarter 4
YEAR 1
1710
960
2720
2430
YEAR 2
1820
910
2840
2200
YEAR 3
1830
1090
2900
2590
5.
A contractor for the military is looking for a new location for a supply depot. The depot will supply
four bases whose tonnage (demand) and map coordinates are shown below. If management wants
the depot to have a central location, what should be its map coordinates?
Bases
Fort Able
Base Baker
Camp Charlie
Camp Delta
6.
(X,Y) Coordinates
(40,110)
(70,50)
(90,20)
(70,80)
Tonnage
30,000
60,000
35,000
75,000
A manufacturing company preparing to build a new plant is considering three potential locations
for it. The fixed and variable costs for the three alternative locations are presented below.
a. Complete a numeric locational cost-volume analysis.
b. Indicate over what range each of the alternatives A, B, C is the low-cost choice.
c. Is any alternative never preferred? Explain.
7.
Costs
A
B
C
2,500,000
2,000,000
3,500,000
Fixed ($)
21
25
15
Variable ($ per unit)
An electronics manufacturer makes remote control devices for interactive-cable-TV systems. The
following assembly tasks must be performed on each device.
Task
A
B
C
D
E
F
G
H
I
J
a.
b.
c.
d.
e.
f.
8.
Description
Place circuit into circuit frame
Solder circuit connections to central circuit control
Place circuit assembly in device frame
Attach circuit assembly to device frame
Place and attach display to frame
Place and attach keypad to frame
Place and attach top body of device to frame
Place and attach battery holder to frame
Place and attach bottom body of device to frame
Test device
Predecessor(s)
-A
B
C
--E, F
D
G, H
I
Time (min.)
0.50
0.70
0.40
0.30
0.30
0.20
0.35
0.40
0.60
0.30
Draw the precedence diagram for this problem.
What is the sum of the task times?
What cycle time will allow the production of 200 units over a ten-hour day?
What is the theoretical number of workstations needed?
Balance this assembly line using the heuristic most following tasks and the heuristic longest
operation time.
How do these two solutions differ? Which do you prefer; why?
Departments A, B, C, and D need to be assigned to four rooms 1, 2, 3, and 4. These rooms are
arranged in a row, in that order, with 20 meters between each. The departmental work flows are
contained in the table below.
a. What is the material handling total of assigning A-1, B-2, C-3, D-4?
b. What is the material handling total of assigning A-1, B-3, C-4, D-2?
Flow Matrix
Dept. A
Dept. B
Dept. C
Dept. D
Dept. A
0
30
5
20
Dept. B
5
0
40
20
Dept. C
0
10
0
40
Dept. D
10
5
0
0