Assignment 1

Page 1 of 4 Assignment 1 Supply Chain Management – SCMN 3320 Important instructions: Due: Sunday 28 th January (11:59pm) – Submission through Moodle. No extension will be granted . Only one group member should submit the assignment. The assignment should be submitted as one PDF File . The work should be typed, not handwritten. In professional roles, you are unlikely to submit and present handwritten reports. Maintain 4 decimal places in your answers unless otherwise stated. You can use Excel to solve the forecasting problems and paste the Excel output in your submission file. The format (tables) should be clear to understand. Unclear work will not be marked. Plagiarism is a serious academic misconduct and will result in course failure. It is expected that students understand what counts as plagiarism. Student 1) Name: Sangeetha Manikantan ID: T00704411

Page 2 of 4 Problem 1: A shopping cart manufacturer has recently purchased a new equipment that reduces the labour component in production. Prior to buying the new equipment, the company used five workers, who, together, produced an average of 95 carts per hour. Around 5% of this output used to get rejected. Labour cost was $22 per worker per hour and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department and the rejections reduced to 0. Machine cost increased by $10 per hour while output increased by five carts per hour to 100. a. Calculate labor productivity before and after the new equipment induction. Use carts per worker per hour as the measure of labor productivity.(2 Marks) Effective output = 95 carts per hour x (1-0.05) = 95 x 0.95 = 90.25 carts per hour b. Calculate the multi-factor productivity before and after the new equipment. Use carts per dollar (labor plus machine) as the measure. (2 Marks) c. Find the productivity growth according to the two measures ( labor and multifactor ). Which measure do you believe is more appropriate for the analysis of the growth and why? (2; 2; 2 Marks) Since we are concerned about the reduction in the labour component in production as explained in the first sentence of the question. It is ideal to use labour productivity in the scenario. The change from 18.05 carts/hour/worker to 25 carts/hour/workers shows the improvement in the labour productivity. Labour Productivity Before = 90.25 carts per hour = 18.05 carts per worker/hr 5 workers Labour Productivity After = 100 carts per hour = 25 carts per worker/hr 4 workers Multi-factor Productivity Before = 90.25 carts per hour = 0.6016 carts per dollar (5 x 22) +(40) Multi-factor Productivity After = 100 carts per hour = 0.7246 carts per dollar (4 x 22) +(50) Labour Productivity Growth = 25-18.05 = 0.3850 or 38.50% 18.05 Multi-factor Productivity Growth = 0.7246-0.6016 = 0.2044 or 20.44% 0.6016

Page 4 of 4 Forecast for week 7 0.00 5.00 10.00 15.00 20.00 25.00 Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Week 1 Week 1 Ratio Week 2 Week 2 Ratio Week 3 Week 3 Ratio Week 4 Week 4 Ratio Week 5 Week 5 Ratio Week 6 Week 6 Ratio Monday 15.20 0.98 16.30 1.02 16.60 1.00 17.10 1.01 17.20 1.01 17.10 1.00 Tuesday 11.20 0.72 10.50 0.66 12.10 0.73 12.80 0.76 12.80 0.75 12.90 0.76 Wednesday 13.20 0.85 14.00 0.88 14.50 0.87 14.90 0.88 15.00 0.88 15.10 0.89 Thursday 16.30 1.05 16.60 1.04 16.90 1.02 16.60 0.98 16.60 0.98 16.50 0.97 Friday 21.50 1.39 22.50 1.41 22.90 1.38 23.30 1.38 23.40 1.38 23.50 1.38 Total 77.40 79.90 83.00 84.70 85.00 85.10 Average 15.48 15.98 16.60 16.94 17.00 17.02 1.0059 Average Ratio 1.0046 0.7293 0.8752 1.3848 y = 1.5857x + 76.967 0 1 2 3 4 5 6 7 Week Week 1 77.4000 Week 2 79.9000 Week 3 83.0000 Week 4 84.7000 Week 5 85.0000 Week 6 85.1000 Week 7 88.0669 17.6134 <- Avg No of cars using EE Monday 17.6951 Tuesday 12.8460 Wednesday 15.4159 Thursday 17.7181 Friday 24.3918 Week 7