EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Question
Chapter 18, Problem 4CQD
Summary Introduction
Case summary: Major Design Corporation is a 3,500-employee firm with annual revenues of more than $1 billion. The firm offers full services and is divided into five geographically based global sales divisions. MDC was selected by the city of Saratoga to design a new, 10-million-gallon-per-day surface water intake and transmission main. This project is touted as an “alternative” water supply project because the water source is not a historically used source. The project will increase the long-term sustainability of the city because it will diversify the city’s water supply portfolio and recycle water. The project will also minimize the need for additional withdrawals from historic water sources, which have become less productive and more highly regulated in the past 10 years, as the city’s population continues to grow. Other green benefits of the project include reduced environmental impacts on the historic water sources and a reduced carbon footprint, as the irrigation water requires less energy-intensive treatment than the city’s other drinkable water sources.
MR J manages about six engineering projects at any one time, so the project is to be analyzed for ways to complete it in 35 weeks. The results are to be analyzed.
Interpretation: The final recommendation is to be stated.
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Question 1
M&H company ltd. sells television sets and has collected monthly sales data (in units) for the past 12
months as shown in table 1below:
TABLE 1
Month
Sales (Units)
1
120
2
135
3
150
4
165
5
180
6
200
7
195
8
210
9
225
10
240
11
255
12
270
Using the data provided, answer the following questions:
a. Using a 3-month weighted moving average with weights 0.5, 0.3, and 0.2 (most recent month
having the highest weight), calculate the forecast for month 13.
[2 marks]
b. If the company applies an exponential smoothing method with a smoothing constant (a) = 02,
and assumes an initial forecast of 120 units for Month 1, calculate the forecast for month 13.
[6 marks]
c. Calculate the Mean Absolute Deviation (MAD) for the exponential smoothing method and
weighted moving average method using the actual sales data for Months 4 to 12 and determine
which method is more accurate.
[8 marks] d.
Compute the values of a (intercept) and b (slope) using the least squares method. [7 marks]
e. Use the…
Question 4
MGM12026 Production and Operations Management semester il 2024
A company operates a manufacturing plant that produces two products, A and B. The plant has the
following capacity data:
.
.
Design Capacity: 15,000 machine hours per month
Effective Capacity: 12,000 machine hours per month
Actual Output (Utilized Capacity): 10,000 machine hours per month
Additionally, the plant produces Product A and Product B, with the following production data:
Product Demand (Units)
Processing Time Contribution Margin ($
(hours per unit)
per unit)
A
3,000
2.5
40
B
4,000
1.5
30
a. Calculate the plant's
i. Capacity Utilization
[3 marks] ii. Effective Capacity Utilization
[3 marks] iii.
Efficiency. Interpret the results. [3 marks] b. Compute the total machine hours required to
meet full demand for both products. [5 marks]
c. Determine whether the plant has sufficient capacity to meet full demand. If not, calculate the
shortfall in machine hours.
[3 marks]
d. Using the contribution margin per…
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