OPERATIONS MANAGEMENT -CONNECT
14th Edition
ISBN: 9781265205751
Author: Stevenson
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 3, Problem 18P
New car sales for a dealer in Cook County, Illinois, for the past year are shown in the following table, along with monthly indexes (seasonal relatives), which are supplied to the dealer by the regional distributor.
a. Plot the data Dow there seem to be a trend?
b. Deseasonalize car sales.
c. Plot ihe deteasorulized data on the same graph as the original data Comment on the two graphs
d. Assuming no proactive approach on the part of management, discuss (no calculations necessary how you wiould
e. What action might management consider based on your findings m part b?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Long term capacity plans and how to properly make decisions regarding long-term planning
Long-term capacity plans cover periods longer periods of time. These plans are suitable for large businesses that want to scale their operations with a proven strategy for achieving production targets and meeting customer demands. Long-term capacity plans consider other factors apart from the productive requirements of the company.
How important is it, in your mind, to properly make decisions regarding long-term capacity planning? How does this decision impact the present and future profitability of an organization? Be specific and give examples.
In addition to the Amazon case study you provided, I'm curious if you've encountered other examples of companies successfully applying Little's Law to enhance their supply chain risk management practices. For instance, have you seen organizations use queuing theory to assess the potential ripple effects of disruptions, stress-test their contingency plans, or identify critical control points that require heightened monitoring and agility?
Please provide a reference
Sam's Pet Hotel operates 48 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag
The following information is available about these bags:
> Demand
85 bags/week
>Order cost $60.00/order
> Annual holding cost = 35 percent of cost
> Desired cycle-service level 80 percent
> Lead time = 4 weeks (24 working days)
> Standard deviation of weekly demand = 15 bags
> Current on-hand inventory is 320 bags, with no open orders or backorders.
a. Suppose that the weekly demand forecast of 85 bags is incorrect and actual demand averages only 65 bags per week. How much higher will total
costs be, owing to the distorted EOQ caused by this forecast error?
The costs will be $higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)
Chapter 3 Solutions
OPERATIONS MANAGEMENT -CONNECT
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
- Osprey Sports stocks everything that a musky fisherman could want in the Great North Woods. A particular musky lure has been very popular with local fishermen as well as those who buy lures on the Internet from Osprey Sports. The cost to place orders with the supplier is $3030/order; the demand averages 55 lures per day, with a standard deviation of 11 lure; and the inventory holding cost is $1.001.00/lure/year. The lead time form the supplier is 1010 days, with a standard deviation of 33 days. It is important to maintain a 9898 percent cycle-service level to properly balance service with inventory holding costs. Osprey Sports is open 350 days a year to allow the owners the opportunity to fish for muskies during the prime season. The owners want to use a continuous review inventory system for this item. Refer to the standard normal table LOADING... for z-values. Part 2 a. What order quantity should be used? enter your response here lures. (Enter your response rounded to the…arrow_forward9. Research Methodology Fully explain the Quantitative research methodology that and add in the following sub-sections: . Data Collection • Data Analysisarrow_forwardRuby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 40 units and is valued at $80 per unit. Inbound shipments from vendor 1 will average 340 units with an average lead time (including ordering delays and transit time) of 2 weeks. Inbound shipments from vendor 2 will average 550 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a 2-week supply of inventory as safety stock and no anticipation inventory. a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $ (Enter your response as a whole number.)arrow_forward
- The Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year. The miles driven during the past 5 years are as follows: Year Mileage 1 3,000 2 3 4 4,000 3,450 3,850 5 3,800 a) Using a 2-year moving average, the forecast for year 6 = miles (round your response to the nearest whole number). b) If a 2-year moving average is used to make the forecast, the MAD based on this = miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.) c) The forecast for year 6 using a weighted 2-year moving average with weights of 0.40 and 0.60 (the weight of 0.60 is for the most recent period) = ☐ miles (round your response to the nearest whole number). miles (round your response to one decimal place). (Hint: You will have only 3 years of The MAD for the forecast developed using a weighted 2-year moving average with weights of 0.40 and 0.60 = matched data.) d) Using…arrow_forwardTask time estimates for the modification of an assembly line at Jim Goodale's Carbondale, Illinois, factory are as follows: B D G Time Activity (in hours) Immediate Predecessor(s) A 5.0 B 7.5 C 5.0 A DEFC 8.0 B, C 4.5 Figure 2 A B, C 7.7 D G 5.0 E, F This exercise contains only part a. a) The correct precedence diagram for the project is shown in 目 F B Figure 3 A E B E ☑ D Farrow_forwardDave Fletcher was able to determine the activity times for constructing his laser scanning machine. Fletcher would like to determine ES, EF, LS, LF, and slack for each activity. The total project completion time and the critical path should also be determined. Here are the activity times: Activity Time (weeks) Immediate Predecessor(s) Activity Time (weeks) Immediate Predecessor(s) A 6 E 3 B B 8 F 6 B C 3 A G 11 C, E D 1 A H 7 D, F Dave's earliest start (ES) and earliest finish (EF) are: Activity ES .EF A 0 6 B 0 8 C 3 9 D 6 E F 8 G 22 H 21 Dave's latest start (LS) and latest finish (LF) are: Activity LS LF H 15 G 11 F 9arrow_forward
- There are multiple ways a company can enter a foreign market. Explore two possibilities such as exporting, foreign direct investment, and collaborations (joint ventures, alliances, licensing, franchising), and evaluate the pros and cons of each method. Which types of products and services would be appropriate for each market entry method?arrow_forward01,3 ☐ Question 3 Scenario 9.3 4 pts The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost/high volume assemblies, the XO-01, has an estimated annual demand of 8,000 units. Talbot estimates the cost to place an order is $50, and the holding cost for each assembly is $20 per year. The company operates 250 days per year. Use the information in Scenario 9.3. What is the annual inventory holding cost if Talbot orders using the EOQ quantity? O less than or equal to $1,500 Ogreater than $4,000 but less than or equal to $6,500 O greater than $6,500 O greater than $1,500 but less than or equal to $4,000 Nextarrow_forwardAnalyze Walmart Inc. operations and conducting a strengths, weaknesses, opportunities, and threats (SWOT) analysis. Pay attention to Walmart Inc. strengths and opportunities to come up with a social cause that meshes well with them. Focusing on areas where Walmart Inc. excels and then finding a social cause that can benefit from Walmart Inc. strengths can also ultimately help Consider how shareholder and stakeholder theories of ethics will impact the selection of a target social cause for Walmart Inc to pursue. What responsibility does Walmart Inc. owe to its stockholders and stakeholders? Will pursuing a social responsibility program detract from the responsibilities to these two groups? Any program that is implement will redirect resources toward the social cause and away from the stockholders and stakeholders. Is it ethical? Walmart Inc SWOT analysis. Justify each item of the analysis. Evaluate the ethical implications of pursuing a social responsibility program in terms of the…arrow_forward
- Detail Instructions Consider the following activities, activity times and precedence relations for a hypothetical Athletic Club Building project. Activity Activity Description Normal Time (weeks) Immediate Predecessors A Form project team 9 B Prepare renovation plans 12 A C Demolish interior space 10 B D Upgrade utility systems 20 A E Select equipment, furniture & 10 B fixtures F Hire Staff 10 A G Renovate building 30 B,C H Purchase equipment, furniture & 26 E fixtures Install equipment, furniture & 4 D.G.H fixtures 3 FI J Train staffarrow_forwardHow do you think smaller companies, with less sophisticated systems compared to giants like Amazon, can apply Little's Law to optimize their operations? Please Provide a referencearrow_forwardWhat are your thoughts on how businesses can account for real-world variability when applying Little's Law, especially in industries where demand is highly unpredictable? Please provide referencearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Contemporary MarketingMarketingISBN:9780357033777Author:Louis E. Boone, David L. KurtzPublisher:Cengage Learning
MarketingMarketingISBN:9780357033791Author:Pride, William MPublisher:South Western Educational Publishing
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Contemporary Marketing
Marketing
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Cengage Learning
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
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
Forecasting 2: Forecasting Types & Qualitative methods; Author: Adapala Academy & IES GS for Exams;https://www.youtube.com/watch?v=npWni9K6Z_g;License: Standard YouTube License, CC-BY
Introduction to Forecasting - with Examples; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=98K7AG32qv8;License: Standard Youtube License