Operations Management
Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 18, Problem 9P

a.

Summary Introduction

To determine: The expected number of customer waiting.

Queuing theory: It is a mathematical study of queues or waiting lines. Using queuing model, length of a queue and waiting time can be determined.  In operations management, queuing theory is used for decision making about the resources required to offer services.

b.

Summary Introduction

To determine: The average length of time customers must wait from the initial request for service until the service has been completed.

c.

Summary Introduction

To determine: The percentage of time the service representative will be idle.

d.

Summary Introduction

To determine: Reduction in expected number of customers waiting.

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Scenario You have been given a task to create a demand forecast for the second year of sales of a premium outdoor grill. Accurate forecasts are important for many reasons, including for the company to ensure they have the materials they need to create the products required in a certain period of time. Your objective is to minimize the forecast error, which will be measured using the Mean Absolute Percentage Error (MAPE) with a goal of being below 25%. You have historical monthly sales data for the past year and access to software that provides forecasts based on five different forecasting techniques (Naïve, 3-Month Moving Average, Exponential Smoothing for .2, Exponential Smooth for .5, and Seasonal) to help determine the best forecast for that particular month. Based on the given data, you will identify trends and patterns to create a more accurate forecast. Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next…
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