1. Use the sales data given below to determine the predicted value for 2008 sales.

Year 2001 2002 2003 2004 2005 2006 2007

Sales 100 110 122 130 139 152 164
(Units)

2. A small regional trucking company has experienced steady growth. Use time series
regression to forecast capital needs for the next 2 years. The company's recent capital needs
have been:
══════════════════════════════════════════════

Capital Needs Capital Needs

(Thousands Of (Thousands Of

Year Dollars) Year Dollars)

------------------------------------------- --------------------------------------------

1 100 3 130

2 110 4 140

5 160

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3. The top management of Computer Products Corporation (CPC) in San Jose is now going through
the preliminary steps of its annual planning process to develop an operating plan for next year. Jane
Billingsley is one of the staff analysts charged with the responsibility of estimating the level of
revenues for next year. Her approach is to develop individual product line forecasts and then
combine the product line forecasts into an aggregate sales forecast for CPC. She is now in the
process of examining the most recent six years of sales data for CPC's line of Personal Computers:

════════════════════════════════════
Sales Revenues Sales Revenues

Year (Millions of Dollars) Year (Millions of Dollars)

────────────────────────────────────

1 1.4 4 26.8

2 6.9 5 34.9

3 16.5 6 39.1

════════════════════════════════════

a. Assuming that the sales data above are representative of sales expected next year, use
time series regression analysis to forecast next year's (Year 7's) sales revenues for the line of
Personal Computers.
b. Determine the correlation coefficient for the data and interpret its meaning.

c. Find the coefficient of determination for the data and interpret its meaning.

1. The Boston plant of Computer Products Corporation (CPC) manufactures a line of resins that is
shipped to other CPC plants and other firms in the electronics and computer-manufacturing
industries. Lynda McDonald, production-planning manager at the plant, is planning the aggregate
production capacity required at the plant to produce next year's sales forecast that was just issued
from CPC's corporate headquarters in San Jose. The plant manufactures three lines of resin (Wopac,
Ziptite, and Lockit), each line with several variations but each one requiring the same amount of
labor- and machine-hours to manufacture one pound. For example, the only difference between
Wopac 3599 and Wopac 3674 is in the ingredients used for each. The same amount of production
time is required by each.

═════════════════════════════════════════════════

Sales Forecast (Thousands of Tons)

Resin 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

─────────────────────────────────────────────────

Wopac 10.3 11.4 13.9 9.3

Ziptite 6.1 5.4 7.8 6.7

Lockit 3.0 1.4 4.2 5.7

═════════════════════════════════════════════════

Ample machine capacity exists to produce the forecast and each ton of resin requires 5 labor hours.

a. Compute the aggregate demand for resins in each quarter.

b. Compute the aggregate number of labor-hours in each quarter.

c. If each worker works 520 hours per quarter, how many workers will be required
in each quarter?

It costs $2,000 to hire a worker and $1,000 to lay off a worker, and inventory carrying cost is $150
per ton of resin. (This means that if one ton of resin were held in inventory for a year, it would cost
$150 for finance charges, insurance, warehousing expense, etc.) CPC's Boston plant works the same
number of days in each quarter, 13 five-day weeks. Evaluate two aggregate plans for next year: (a)
matching demand and (b) level capacity with inventory. Which plan would you recommend? Why?
Assume that the pattern of quarterly demand repeats from year to year and that beginning
inventory is zero.

A product has this product structure tree:

B(2) C(1)

D(2)

Inventory records show this information:

Lead
Item Level Lot Time On Safety
Code Code Size (weeks) Hand Stock Allocated
A 0 LFL 1 2,000 1,500

B 1 LFL 1 1,200 700 500

C 1 1,500+ 1 1,500 500 500

D 2 3,000+ 2 2,000 500 1,000

Product A is the only item currently with a Scheduled Receipt. 1,000 units of Product A are
expected to be completed during Week 1.

The gross requirements for Product A are: 2,000 units in Week 4, 1,000 units in Week 5, and
2,000 units in Week 6.

Develop the MRP tables for this problem using a 6-week planning horizon.
. You are the MPS planner at MM Motors and you use a time-phased records for planning
end-term production. You are currently working on a schedule for MM24, one of the
company’s top selling motors. You have decided to use a lot size of 70 and a safety stock of 5
for the MM24 motor.

MM24 On 1 2 3 4 5 6 7 8
hand
20
Forecast 30 30 30 40 40 40 45 45
Orders 13 8 4
Projected available balance
MPS 70
Available-to-promise

a. Complete the MPS time-phased record for MM24.

24. A furniture manufacturer makes a bookcase from two (2) end panels, four (4) shelves,
fasteners, and hangers. The end panels and shelves have the following data:

End Panel
Operation Machine Run Time Setup Time
Saw 5 minutes 0.6 hour
Planer 3 minutes 0.3 hour
Router 4 minutes 0.8 hour

Shelf
Operation Machine Run Time Setup Time
Saw 4 minutes 0.5 hour
Moulder 5 minutes 1.3 hour
Router 5 minutes 0.7 hour
Sander 1 minutes 0.1 hour
The master schedule for the next three weeks is 35, 50 and 40 bookcases, respectively. Each
MPS requires a setup.

a. What is the total number of hours required on each of the five machine centres for
each week?
b. If each one of the two parts is started into production one week (five days) before they
are needed in assembly, and it takes one day per operation, generate the week-by-
week load on the routing machine.
c. If, in part b the two parts arrive at the router on the same day, which would process
first? Why?

The Jailbound Tax Service processes industrial customers' tax jobs on a first-come first-
served basis but wonders if shortest processing time would be better. The jobs that are
now waiting to be produced are listed in the order in which they arrived, with their
estimated production times, time to promised delivery, and the necessary computations:
═══════════════════════════════════════════════════════════════════════════
══
Estimated Time To Late- Late-
Production Promised Job Flow ness Job Flow ness

Time Delivery Se- Time (Days) Se- Time (Days)

Job (Days) (Days) quence (Days) [(5)-(3)] quence (Days) [(8)-

(3)]

───────────────────────────────────────────────────────────────────────────
──

A 5 8 1 5 -- 2 8 --

B 3 6 2 8 2 1 3 --

C 10 24 3 18 -- 4 26 2

D 8 22 4 26 4 3 16 --

═══════════════════════════════════════════════════════════════════════════
══

a. Rank the two sequencing rules on three evaluation criteria--average flow time,

average number of jobs in the system, and average job lateness.

b. Which sequencing rule would you recommend? Why?

Seven jobs are waiting to be produced at a workstation. Their code numbers, estimated

production times, and promised delivery times are given below:

Time to
Production Promised
Job Code Time Delivery
Number (Hours) (Hours)

A590 6.0 3.0

B640 3.1 8.0

C420 8.4 14.0

D310 9.1 26.0

E225 2.7 6.0

F480 5.3 10.0

G580 7.0 21.0

 a. Use the shortest processing time rule and determine the sequence of producing

the jobs.

b. Use the critical ratio rule and determine the sequence of producing the jobs.