FINAL PROJECT:
Chapter 1:
Page: 23
Case Study: National Air Express 1. Is the productivity measure of shipments per day per truck still useful? Are there alternatives that might be effective?
The productivity can be measured by the number of stops covered by each driver. I think measuring shipments per day per truck is still useful. It helps to keep on track with the amount of services that can be offer on every day basis and with the area covered by each driver. By doing that, the company can tell how many areas have been covered by a driver per day; therefore productivity can be assessed in measurable way. 2. What, if anything, can be done to reduce the daily variability in pickup call-ins? Can the driver be expected to be at several locations at once at 5pm?
To reduce daily variability in pickup call-ins, the company should avoid call-ins during peak time; what I mean is that the company can offer to its customer’s deals to call at maybe nights when the network is not that busy so people for important calls only can use and benefit from the network.
By offering deals to clients that call at night times the driver might be able to make to several place before peak time which is 5pm. This strategy can be apply in order to reduce the business during the day time so the driver can easily and correctly do their job. 3. How should package pickup performance be measured? Are standards useful in an environment that is affected by weather, traffic, and other random variables? Are other companies having similar problems?
Package pickup performance should be measurable by surveying the customers. Customers can give an idea of their satisfaction, about how the goods are coming to them. Feedbacks are necessary for the company so that it can generate new ways of improvement.

Standards are useful in an environment that is affected by the weather, traffic and other random variables. This shows to the customers that the company is willing to provide services in anyways.it also shows the strength of the company and drivers.
Problems:
1.1. John Lucy….. a) What is their productivity?
120/ 40 = 3 units/hr. b) What will be their productivity if rate is increase to 125/day?
125/40 = 3.125 units / hr. c) What will be their unit increase in productivity per hour? 4.125 – 3 = 0.125 units d) What will be their % change in productivity?
0.125/3 =0.042 = 4.2%
1.2. Riverside Metal works… a) Calculate the labor productivity of the line
160/80 = 2 valves/ hr.
b) What is the new labor productivity? 180/80 = 2.25 valves/hr.
c) What is the % of productivity increase? (2.25-2)/2 = 1.25 = 12.5%
1.8. Kleen Karpet… a) What is the labor productivity per dollar?
(520*13) = 6760; 65 / 6760= 0.0096 rugs/$ b) What is the multifactor productivity? 65/ (520*13+100*5+20*50) = 0.00787 1.15. Refer to problems 1.13 and 1.14…. $500/month $8 /hour; $0.35/loaf $ 1500 loaves/ month; 2.344/ labor hour 1500 loaves. CHAPTER 2: Page 49: Problem 2.1. The text provides three primary ways –strategic… Solution: For Differentiation: We can take an example of Starbucks, it is a coffee shop but the atmosphere is really unique compare from other coffee shops. As a student it is a great place to go and study, most of the time it is quiet, you also get the chance to smell the fresh and nice aroma of the grind coffee while working on papers. For Cost: Walmart can be a great example when it comes to cost. Walmart has a huge buying power and its costs are for every class society. It has very decent prices that almost everybody can afford. For Response: We can an example of an Amazon or EBay seller. Once you order your product online the seller will ship it to you with an exact delivery day. 2.2. Within the food services industry… For Cost leadership: I am going to pick Walmart again since it comes back to cost. Walmart is one of the biggest retailers in the market due to its low cost of products that every household can afford. The reason why Walmart can compete with other firm is due to its low cost strategy. For Response: We can take an example of ‘’ Three Tomatoes’’ which is catering company. Basically what they do is that they provide services. For instance if you have a business lunch, a dinner, wedding or whatever event you can just call them and tell them what you want. They have a vary menu, you place your order and on the event day they will provide you with the food and beverage. For Differentiation: ‘’ Texas De Brazil’’ can be an example for differentiation. ‘’Texas De Brazil’’ is a Brazilian steakhouse featuring a salad bar, a wide variety of ‘’ all you can eat meats’’, seafood, soups, and desserts. It is really different compare to some steakhouses. The ambiance is lively, they have varieties of meat (lamb, pork, beef, chicken), plus the workers there are very welcoming. CHAPTER 3: Page 90 -91: Problem 3.2. Robert Mefford has decided to run for a seat as congressman… 3.3. Draw the activity on node (AON) project network with the following activities… How long should it take Dave and his team to complete this project? It should take Dave and his team 21 days to finish the project. What are the critical path activities? A, B, D, G and A, C, F, H 3.4. Given the activities whose sequence is described by the following table… a) Which activities are on the critical path? The critical path is: A, C, F, G, I. b) What is the length of the critical path? 5+4-5+2+5 = 21 days 3.8. The city commission of Nashville has decided build a botanical and picnic area… - Draw the Gantt chart for the whole construction activity. CHAPTER 4: Page 140-142: Problem 4.5. The Carbondale hospital is considering the purchase of a new ambulance… a) Forecast the mileage for next year using a 2- year moving average. (3700+3800)/2 = 3750 ml b) Find MAD based on the 2 year moving average forecast in part (a). (Hint: You will only have 3 years of matched data.) Year | Mileage | 2 year Moving average | Error | lErrorl | 1 | 3000 | | | | 2 | 4000 | | | | 3 | 3400 | 3500 | -100 | 100 | 4 | 3800 | 3700 | 100 | 100 | 5 | 3700 | 360 | 100 | 100 | | | TOTALS | 100 | 300 | MAD = 300/3 = 100 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 the approach to forecasting? (Hint: You will have only 3 years of matching data.) (3700*0.6+3800*0.4) / (0.6+0.4) = 3740 d) Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 3000 miles, and α = 0.5. Year | Mileage | Forecast | Forecast Error | Error α α = 0.50 | New Forecast | 1 | 3000 | 3000 | 0 | 0 | 3000 | 2 | 4000 | 3000 | 1000 | 500 | 3500 | 3 | 3400 | 3500 | -100 | -50 | 3450 | 4 | 3800 | 3450 | 350 | 175 | 3625 | 5 | 3700 | 3625 | 75 | 38 | 3663 | | | TOTAL | 1325 | | | The forecast is 3663 miles. 4.8. Daily high temperature in St. Louis for the last week were as follow… a) Forecast the high temperature today, using a 3 day moving average. (96+88+90) / 3 = 91.3 b) Forecast the high temperature today, using a 2 day moving average. (88+90) / 2 = 89 c) Calculate the mean absolute deviation based on a 2 day moving average 1 | 93 | 93.5 | | | | 2 | 94 | 93.5 | | | | 3 | 93 | 94 | | | | 4 | 95 | 95.5 | | | | 5 | 96 | 92 | | | | 6 | 88 | | | | | 7 | 90 | | | | | 92.7-90 = 2.7??? all error/5=2.7 d) Compute the mean squared error for the 2 day moving average. =13.35 same thing e) Calculate the mean absolute percent error for the day moving average. =2.99% same thing 4.12. Consider the following actual and forecast demand level for…276.25-340.25 Forcastn actual 4.15. Refer to solved problem 4.1. Page 138. What is the MAD? Samething as 4.8 CHAPTER 5: Page 181-182: Problem 5.10. Given the contribution made on each of the three products in the following table… Identify a reasonable operations strategy for each. - Kindle 2 (Growth Stage): Since the Kindle2 is on its growing stage I think the company should focus more on its number of production. Also the company should make sure that they have well organized and proficient productions facilities. - Netbook Computer (Introduction Stage): Since it is a new product that is being introduce to the market it would be to first have a great marketing plan. A plan that will actually describe the product as it is, and mention all the details. It would be also great to know its target market, who is going to be interested. Moreover, make sure you have a supplier and a distribution system ready. - Hand Calculator (Decline Stage): Reduce the cost of the distribution. 5.11. The product design group of Flores Electric supplies Inc. has… a) Low-Tech for 0.3; 0.4; 0.3. 45000 + (200000*0.55) = 155000 45000 + (200000*0.5) = 145000 45000 + (200000*0.45) = 135000 b) Subcontract for 0.7; 0.2; 0.1 65000 + (200000*0.45) = 155000 65000 + (200000*0.40) = 145000 65000 + (200000*0.35) = 135000 c) High Tech for 0.9; 0.1 75000 + (200000*0.40) = 155000 75000 + (200000*0.35) = 145000 * Since we are looking for the lowest EMV, I think the best decision would be to use the lowest cost which is $145000. 5.13. Residents of Mill River have fond memories of ice skating at the local park… Elegant (Good Market): (400*125) - 35000 = 15000 Net Profit Elegant (Not Good Market): (90*300) -35000 = -8000 Lost Deluxe (Good Market): (400*125) – 35000 = 15000 Net Profit Deluxe (Not Good Market): (400*70) – 35000 = -7000 Lost Do nothing = No cost therefore No profit = Yes Deluxe (Good Market 50%): 0.5*15000 = 7500 Deluxe (Not Good market 50%): 0.5* -7000 = -3500 7500-3500 = $4000……; with the 50% probability of a good market, the deluxe drawing can actually make a net profit of $ 4000. 5.14. Ritz products’ materials manager, Bruce Elwell must determine whether to make or buy a new semiconductor for the wrist TV… a) Assuming Ritz must have the semiconductor (stopping or doing without is not a viable option), what is the best decision? 1000000*0.50 =500000 1000000+500000 = 1500000 1000000*.4 = 400000 b) What criteria did you to make this decision? c) What is the worst that can happen to Ritz as a result of this particular decision? What is the best that can happen? CHAPTER 6: Page 210: Problem 6.1. An Avant garde clothing manufacturer runs a series of high-profile… a) Depict this data with a Pareto chart. Also depict the cumulative complaint line. b) What percent of the total complaints can be attributed to the most prevalent complaint? 38.89 6.5. Theresa Shotwell’s restaurant in Tallahassee, Florida, has recorded the following data for 8 recent customers… a) Graph the 8 points, find the possible causes b) This is an example of what type of graph? This is an example of ‘’Scatter Diagram’’. 6.9. Consider the everyday task of getting to work on time or arriving at you first class on time in the morning. Draw I fishbone showing reasons why you might arrive late in the morning. - Machine: Broken Car, Car in bad shape - Material: No alarm clock, Dead cellphone - Manpower: No police traffic, slow driving - Method: Wake up late, leave home late 6.12. Mary Beth Marrs, the manager of an apartment complex, feels overwhelmed by the number of complaints she is receiving….