OPERATIONS MANAGEMENT

GRADABLE ASSIGNMENT 30 MARKS

1. What are the current trends in operations management? 5M

2. Mention the recent technologies used in product and process design. 5M

3. Identify three major functional areas of business organizations and briefly describe how
they interrelate. 5M

4. Medanalysis, Inc., provides medical laboratory services to patients of Health Providers,

a group of 10 family practice doctors associated with a new health maintenance
program. Managers are interested in forecasting the number of blood analysis requests
per week. Recent publicity about the damaging effects of cholesterol on the heart has
caused a national increase in requests for standard blood tests. The arrivals over the last
16 weeks are given below.

Week Arrivals
1 28
2 27
3 44
4 37
5 35
6 53
7 38
8 57
9 61
10 39
11 55
12 54
13 52
14 60
15 60
16 75

a. Calculate the forecast for the next period using

a. Naive,
b. Three period Moving average and
c. Exponential smoothing ( with alpha = 0.4).

b. Calculate the next three period forecast using linear regression method.
c. Use forecast accuracy methods (MAD, MSE, MAPE and tracking signal) for the all the
above methods. Note that only for the data for which you have both Actual and
Forecast are known, we can calculate the forecast accuracy. 10 M

5. For the following payoff table

New bridge built No new bridge

Alternative Small 1 14
capacity for new Medium 2 10
store Big 4 6
Assume the probability of a new bridge built is 0.6. Construct the decision tree and
infer. Also calculate EVPI. 5 Marks