EBK OPERATIONS MANAGEMENT
14th Edition
ISBN: 9781260718447
Author: Stevenson
Publisher: MCG COURSE
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 3, Problem 1.2CQ
M&L MANUFACTURING
M&L Manufacturing makes various components for printers and copiers. In addition to supplying these items to a major manufacturer, the company distributes these and similar items to office supply stores and computer stores as replacement parts for printers and desktop copiers in all the company makes about 20 different items. The two markets (the major manufacturer and the replacement market) require somewhat different handling. For example replacement products must be packaged individually whereas products are shipped in bulk to the major manufacturer.
The company does not use forecasts for production planning. Instead, the operations manager decides which items to produce and the batch size based on orders and the amounts in inventory. The products that have the fewest amounts in inventory get the highest priority. Demand is uneven, and the company has experienced being overstocked on some items and out of others. Being understocked has occasionally created tensions with the managers of retail outlets. Another problem is that prices of raw materials have been creeping up, although the operations manager thinks that this might be a temporary condition.
Because of competitive pressures and falling profits the manager has decide to undertake a number of changes. One change is to introduce more formal
With that m mind the manager wants to begin forecasting for two products. These products are important for several reasons. First, they account for a disproportionately large share of the company’s profits. Second, the manager believes that one of these products will become increasingly important to future growth plans and third, the other product has experienced periodic out-of-stock instances.
The manager has compiled data on product demand for the two products from order records for the previous 14 weeks. These are shown in the following table.
*Unusual order due to flooding of customer’s warehouse.
2. Prepare a weeldy forecast for the next four weeks each product. Briefly explain why you chose the method you used (Hint: For product 2, a simple approach, possibly some sort of naive/intuitive approach, would be preferable to a technical approach, would be preferable t a technical approach in view of the manager’s disdain of more technical methods.)
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Duscuss the purchasing department's primary goals are of the following:
To locate suppliers that can provide goods and services in accordance with the buyer's requirements.
To buy items that meet the quality specifications of the buyer.
To create a stream of deliveries into the buyer's premises that minimize the raw materials inventory investment while still ensuring that goods are available as needed.
To minimize the amount of cash invested in inventory.
Efua Babyson (not a real name) completed Fashion Design Programme at a Technical University
in Takoradi. Efua decided to join a dress-making group to gain experience for her career. In the
course of her internship, Efua has observed that there are always a lot of beautiful pieces of leftover
clothes that go waste thereby requiring the shop to spend money to dispose them. She is then
thinking of designing fashioned carrier bags with the leftover clothes. Efua needs ideas on what
factors to consider in decide to go or not go for the development of the conceived business idea.
(a) Discuss four key things to consider in deciding to pursue or not the conceived
business idea?
Mpho is an avid seamstress and want to sew and sell high quality, reusable, designer face masks during the current Covid-19 pandemic. She will design and sew the masks herself and use her automatic embroidery machine to put her logo on each mask sold. With the help of her son, deliveries will be made all over Gauteng within 3 days of placing the order. Every mask will have a unique threelayer design with adjustable straps to ensure comfort and fit. Mpho’s only expense is the material needed to sew the masks and delivery costs. At this stage, Mpho’s target market is limited to Gauteng. Draw a diagram to illustrate the transformation process of Mpho’s new business. Be sure to include all relevant elements, headings and arrows to indicate the flow of products/ services
Chapter 3 Solutions
EBK OPERATIONS MANAGEMENT
Ch. 3.15 - Prob. 1.1RQCh. 3.15 - Prob. 1.2RQCh. 3.15 - Prob. 1.3RQCh. 3 - What are the main advantage that quantitative...Ch. 3 - What are some of the consequences of poor...Ch. 3 - List the specific weaknesses of each of these...Ch. 3 - Forecasts are generally wrong a. Why are forecasts...Ch. 3 - What is the purpose of establishing control limits...Ch. 3 - What factors would you consider in deciding...Ch. 3 - Contrast the use of MAD and MSE in evaluating...
Ch. 3 - What advantages as a forecasting tool does...Ch. 3 - How does the number of periods in a moving average...Ch. 3 - What factors enter into the choice of a value for...Ch. 3 - Prob. 11DRQCh. 3 - Explain how using a centered moving average with a...Ch. 3 - Contrast the terms sales and demand.Ch. 3 - Contrast the reactive and proactive approaches to...Ch. 3 - Explain how flexibility in production systems...Ch. 3 - How is forecasting in the context of a supply...Ch. 3 - Which type of forecasting approach, qualitative or...Ch. 3 - Prob. 18DRQCh. 3 - Choose the type of forecasting technique (survey,...Ch. 3 - Explain the trade-off between responsiveness and...Ch. 3 - Who needs to be involved in preparing forecasts?Ch. 3 - How has technology had an impact on forecasting?Ch. 3 - It has been said that forecasting using...Ch. 3 - What capability would an organization have to have...Ch. 3 - When a new business is started, or a patent idea...Ch. 3 - Discuss how you would manage a poor forecast.Ch. 3 - Omar has beard from some of his customers that...Ch. 3 - Give three examples of unethical conduct involving...Ch. 3 - A commercial baker, has recorded sales (in dozens)...Ch. 3 - National Scan, Inc., sells radio frequency...Ch. 3 - A dry cleaner uses exponential smoothing to...Ch. 3 - An electrical contractors records during the last...Ch. 3 - A cosmetics manufacturers marketing department has...Ch. 3 - Prob. 6PCh. 3 - Freight car loadings ova a 12-year period at a...Ch. 3 - Air travel on Mountain Airline for the past 18...Ch. 3 - a. Obtain the linear trend equation for the...Ch. 3 - After plotting demand for four periods, an...Ch. 3 - A manager of a store that sells and installs spas...Ch. 3 - The following equation summarizes the trend...Ch. 3 - Compute seasonal relatives for this data the SA...Ch. 3 - A tourist center is open on weekends (Friday,...Ch. 3 - The manager of a fashionable restaurant open...Ch. 3 - Obtain estimates of daily relatives for the number...Ch. 3 - A pharmacist has been monitoring sales of 2...Ch. 3 - New car sales for a dealer in Cook County,...Ch. 3 - The following table shows a tool and die companys...Ch. 3 - An analyst must decide between two different...Ch. 3 - Two different forecasting techniques (F1 and F2)...Ch. 3 - Two independent methods of forecasting based on...Ch. 3 - Long-Life Insurance has developed a linear model...Ch. 3 - Timely Transport provides local delivery service...Ch. 3 - The manager of a seafood restaurant was asked to...Ch. 3 - The following data were collected during a study...Ch. 3 - Lovely Lawns Inc., intends to use sales of lawn...Ch. 3 - The manager of a travel agency has been using a...Ch. 3 - Refer to the data in problem 22 a. Compute a...Ch. 3 - The classified department of a monthly magazine...Ch. 3 - A textbook publishing company has compiled data on...Ch. 3 - A manager has just receded an valuation from an...Ch. 3 - A manager uses this equation to predict demand for...Ch. 3 - A manager uses a trend equation plus quarterly...Ch. 3 - ML MANUFACTURING ML Manufacturing makes various...Ch. 3 - ML MANUFACTURING ML Manufacturing makes various...Ch. 3 - HIGHLINE FINANCIAL SERVICES, LTD. Highline...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?arrow_forwardX1=29000 X2=5 I need a step by step answer please (not on excel please)arrow_forwardA company produces and sells electronic components that are purchased by computer manufacturers. The company just received an order for 3000 circuit boards that must be delivered to the customer in 28 days. Shipping takes 4 days and every production run for this component takes 3 days for any quantity of circuit boards between 1800 and 4200. The Bill of Materials (listing the materials and quantities required to produce a single circuit board ordered) is in the table below: Quantity Component Required Input Bare printed 1 board Сарacitor 8 Op amp Resistor 4 Transistor 3.arrow_forward
- At the Lebanese factory "DELCO", John is using a system to produce the bar codes attached on the product bulks for identification. Each bulk contains 100 units of a certain product, and all the information related to the products inside the bulk are then represented by the barcode. Once prepared, the bulks are transferred to a very large warehouse and the location of each one is entered on the system. At a later stage, John uses the barcode in the warehouse to identify the right bulks for delivery, after being scanned using a special wireless barcode scanner. This way, John can decide in a better way how and when to make the shipments. This system helps John to save time and minimize the errors, and to perform his daily work in the most efficient way. On the other side, "DELCO" is facing a problem of late delivery to customers. In fact, dealing with hundreds of suppliers, wholesalers, and agents around the world makes this process very complicated. Most of the times, the shipments from…arrow_forwardX1= 29000 X2=5 I need a step by step answer please :)arrow_forwardAs regard to customer data as well as data from transactions, the Amazon Go model is premised on hundreds of pictures being taken of every person entering and exiting the store. Amazon then stores these pictures for long enough to identify the products being purchased, before the images are deleted. Credit card information is captured at the point of registration for the app that is required to use the Amazon Go stores, and then credit and debit card information is captured when purchases are made. Further receipts are issued after purchases are made, and the system also records how long an individual has been shopping for (this is printed on the receipt). With a need to capture and store such large volumes of information that is both sensitive and personal to people, it is not surprising that many are concerned for the security of the information and the potential for the information to fall into the wrong hands. Amazon Go stores are in their infancy, and have not had to deal with any…arrow_forward
- Determine an A-B-C classification for these items: Which items are A, B, and C - explain how you derive the answers? Use a table or excel spreadsheet to illustrate your work. Item Unit Cost Annual Volume (000)1 300 252 90 303 30 604 50 105 15 706 100 407 10 60 Hint:Determine the Annual Dollar Value (Unit Cost * Annual Volume) for each item and the sum of the individual Annual Dollar Values. Arrange the items in descending order based on Annual Dollar Values. Then, determine the percentage of items and the percentage of…arrow_forward3(AL Jn 2020, Square-Nine Entrerprise has purchased 250,000 micro-chips for the first four months and 35% more on the remainder as a component in the production of its products. As much as 25% of the purchase is not used but instead stored in the warehouse. Each unit of the final product is sold in the market at a price of $18.99 per unit, and the storage cost is a total of $1.13 per unit. The cost price of the order is $5,500 for each delivery that takes three weeks. Calculate: 1) An annual optimal order quantity. 2) A total of number of orders placed in a year. 3) Time range between orders if the company operates for 49 weeks in a year 4) What are total units for reorder point? 5) Cost of Goods Sold.arrow_forwardMr. Omar is a sales manager in Al Noor Company. He decided to drop the production of product A because he found that it is unprofitable. This is an advantage of:arrow_forward
- L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item number 2349 should be classified as Item Code Item number 8210 should be classified as 1289 2347 2349 2363 2394 2395 6782 7844 8210 8310 9111 L. Houts Plastics Charlotte Inventory Levels Value Dollar ($/unit) Volume Avg. Inventory (units) 400 300 120 75 89223 co 60 30 20 12 7 6 3.75 4.00 2.50 1.50 1.75 2.00 1.15 2.05 1.80 2.00 3.00 1,200 300 105 23 25 14 18 3,372 % of Dollar Volume 35.59 8.90 3.11 0.68 0.73 0 0.42 0.53 For the following three questions, consider only items 1289, 2349, and 8210 from the above table for relative classification (these are some of the items for which you…arrow_forwardmanagment information systemarrow_forwardStructure Furniture, manufactures coffee tables. Structure Furniture has a policy of adding a 20% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month: Output units Machine-hours 30,000tables 8,000hours Direct manufacturing labour-hours 10,000hours Direct materials per unit Direct manufacturing labour per hour Variable manufacturing overhead costs Fixed manufacturing overhead costs Product and process design costs Marketing and distribution costs S100 S12 $322,500 $1,200,000 $900,000 $1,125,000 a) Structure Furniture is approached by an overseas customer to fulfill a one-time-only special order for 1,000 units. All cost relationships remain the same except for a one-time setup charge of $20,000. No additional design, marketing, or distribution costs will be incurred. What is the minimum acceptable bid per unit on this one-time-only special order? b) What is the Structure Furniture full product cost for…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Introduction to Forecasting; Author: Ekeeda;https://www.youtube.com/watch?v=5eIbVXrJL7k;License: Standard YouTube License, CC-BY