OPERATIONS MANAGEMENT COURSE

ASSIGNMENT #3 (total score 80 points)

DUE ON 16 NOVEMBER 2023 at 6:00 PM

Instructions:

1. Print this questionnaire

2. Write down your solution in space provided per question. Make sure that you
follow a clear and systematic process of solving problems. Use only black ink
pen!
3. You may consult your reference materials. You can use scientific calculators; the
use of MS Excel is allowed, provided the systematic process is written down on
your paper.
4. Once done, scan the questionnaire/solution and submit by email; keep your
original copy; you might be asked to submit the original copy.
5. Sign each page of your assignment paper

Student’s Name Student’s Signature Date Score

Q1 (total 20 points) … Given the following data:

Actual Sales,
Month
units
1 60
2 65
3 55
4 58
5 64
6 ?

Prepare a forecast for period 6 using each of the following approaches:

a. (2/20 pts) … the appropriate naïve approach _______ (answer)

b. (3/20 pts) … a 3-period moving average _______ (answer)

OM Course Assignment No. 3 – due 6:00 pm 16 November 2023 Page 1

 c. (7/20 pts) … a weighted average using weights of 0.50 (most recent), 0.30, and
0.20 ________ (answer)

d. (8/20 pts) … exponential smoothing with a smoothing constants of 0.40

______(answer)

Q2 (total 20 pts) … plot the data on a graph, and verify visually that a linear trend line
is appropriate. Develop a linear trend equation for the following data. Then use the
equation to predict the next two values of the series. Hint: equation of a line is y = a + bx

Period Demand
1 44
2 52
3 50
4 54
5 55
6 55
7 59
8 57
9 62
10 ?
11 ?

a. (5/20 pts) … plot data on a graph; use a separate graphing paper and attached
to this questionnaire properly marked & identified. ________

b. (9/20 pts) … Develop a linear trend equation for the above data; you may use
MS Excel but write down the processes and formula used.

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 c. (6/20 pts) … use the equation to predict the next two values of the series

Q3 (total 20 pts) … Given the process diagram shown below

a. (5/20 pts) … What is the capacity of this system? Explain your answer.

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 b. (15/20 pts) … If the capacity of one operation could be increased in order to the
output of the system, which operation should it be, and what amount of increase?
Explain your answer.

Q4 (total 20 pts) …a company must decide which type of machine to buy, and how
many units of that type, give the following information:

Machine
Cost, $
Type
1 10,000
2 14,000

Product demand and processing times for the equipment are:

Processing Time/unit
Annual
Product (minutes)
Demand
MT-1 MT-2
A 12,000 4 6
B 10,000 9 9
C 18,000 5 3

a. (5/20 pts) … How many machines of each type would be required to handle
demand if the machines will operate 8 hours a day, 250 days a year, and what
annual capacity cushion in processing time would result for each?

b. (7/20 pts) … With high certainty of annual demand, which type of machine would
be chosen if that an important consideration? With low certainty, which type of
machine would be chosen?

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 c. (8/20 pts) … If purchasing and operating costs are taken into account, which type
of machine would minimize total costs, given your answer for part a? operating
costs are $6/hr for type 1 and $5 for type 2.

OM Course Assignment No. 3 – due 6:00 pm 16 November 2023 Page 5