Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)

12th Edition

ISBN: 9781259580093

Author: William J Stevenson

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 5, Problem 7P

A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each or to produce them in-house. Either of two processes could be used for in-house production; one would have an annual fixed cost of $160,000 and a variable cost of $5 per unit, and the other would have an annual fixed cost of $190,000 and a variable cost of $4 per unit. Determine the range of annual volume for which each of the alternatives would be best.

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Chapter 5, Problem 6P

Chapter 5, Problem 8P

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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…

Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next month. Remember to select the forecasting technique that produces the forecast error nearest to zero. For example: a. Naïve Forecast is 230 and the Forecast Error is -15. b. 3-Month Moving Forecast is 290 and the Forecast Error is -75. c. Exponential Smoothing Forecast for .2 is 308 and the Forecast Error is -93. d. Exponential Smoothing Forecast for .5 is 279 and the Forecast Error is -64. e. Seasonal Forecast is 297 and the Forecast Error is -82. The forecast for the next month would be 230 as the Naïve Forecast had the Forecast Error closest to zero with a -15. This forecasting technique was the best performing technique for that month. You do not need to do any external analysis-the forecast error for each strategy is already calculated for you in the tables below. Naïve Month Period Actual Demand Naïve Forecast Error 3- Month Moving Forecast 3- Month Moving…

Chapter 5 Solutions

Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)

Ch. 5.8 - Explain the meaning of the phrase Hours versus...Ch. 5.8 - Prob. 1.2RQ Ch. 5.8 - Prob. 1.3RQ Ch. 5.8 - Prob. 1.4RQ Ch. 5.8 - Prob. 1.5RQ Ch. 5.S - Prob. 1DRQ Ch. 5.S - Prob. 2DRQ Ch. 5.S - Explain the term bounded rationality.Ch. 5.S - Prob. 4DRQ Ch. 5.S - Prob. 5DRQ

Ch. 5.S - What information is contained in a payoff table?Ch. 5.S - Prob. 7DRQ Ch. 5.S - Prob. 8DRQ Ch. 5.S - Under what circumstances is expected monetary...Ch. 5.S - Explain or define each of these terms: a. Laplace...Ch. 5.S - Prob. 11DRQ Ch. 5.S - Prob. 12DRQ Ch. 5.S - Prob. 13DRQ Ch. 5.S - Prob. 1P Ch. 5.S - Refer to problem1. Suppose after a certain amount...Ch. 5.S - Refer to Problems 1 and 2 Construct a graph that...Ch. 5.S - Prob. 4P Ch. 5.S - Prob. 5P Ch. 5.S - The lease of Theme Park, Inc., is about to expire....Ch. 5.S - Prob. 7P Ch. 5.S - Prob. 8P Ch. 5.S - Prob. 9P Ch. 5.S - A manager must decide how many machines of a...Ch. 5.S - Prob. 11P Ch. 5.S - Prob. 12P Ch. 5.S - Prob. 13P Ch. 5.S - Prob. 14P Ch. 5.S - Give this payoff table: a. Determine the range of...Ch. 5.S - Prob. 16P Ch. 5.S - Repeat all parts of problem 16, assuming the value...Ch. 5.S - Prob. 18P Ch. 5 - Prob. 1DRQ Ch. 5 - Prob. 2DRQ Ch. 5 - How do long-term and short-term capacity...Ch. 5 - Give an example of a good and a service that...Ch. 5 - Give some example of building flexibility into...Ch. 5 - Why is it important to adopt a big-picture...Ch. 5 - What is meant by capacity in chunks, and why is...Ch. 5 - Prob. 8DRQ Ch. 5 - How can a systems approach to capacity planning be...Ch. 5 - Prob. 10DRQ Ch. 5 - Why is it important to match process capabilities...Ch. 5 - Briefly discuss how uncertainty affects capacity...Ch. 5 - Prob. 13DRQ Ch. 5 - Prob. 14DRQ Ch. 5 - Prob. 15DRQ Ch. 5 - Prob. 16DRQ Ch. 5 - What is the benefit to a business organization of...Ch. 5 - Prob. 1TS Ch. 5 - Prob. 2TS Ch. 5 - Prob. 3TS Ch. 5 - Prob. 1CTE Ch. 5 - Prob. 2CTE Ch. 5 - Identify four potential unethical actions or...Ch. 5 - Any increase in efficiency also increases...Ch. 5 - Prob. 1P Ch. 5 - In a job shop, effective capacity is only 50...Ch. 5 - A producer of pottery is considering the addition...Ch. 5 - A small firm intends to increase the capacity of a...Ch. 5 - A producer of felt-tip pens has received a...Ch. 5 - A real estate agent is considering changing her...Ch. 5 - A firm plans to begin production of a new small...Ch. 5 - A manager is trying to decide whether to purchase...Ch. 5 - A company manufactures a product using two machine...Ch. 5 - A company must decide which type of machine to...Ch. 5 - Prob. 11P Ch. 5 - A manager must decide how many machines of a...Ch. 5 - Prob. 13P Ch. 5 - The following diagram shows a four-step process...Ch. 5 - Prob. 15P Ch. 5 - Prob. 16P Ch. 5 - Prob. 17P Ch. 5 - Prob. 18P Ch. 5 - A new machine will cost 18,000, butt result it...Ch. 5 - Remodelling an office will cost 25,000 and will...Ch. 5 - Prob. 1CQ Ch. 5 - Prob. 2CQ Ch. 5 - Prob. 3CQ

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