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Homework 2 Fall 2010

Homework 2 Fall 2010 - KEY BUS 370 FA10 Homework#2 — Due...

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Unformatted text preview: KEY BUS 370 FA10 - Homework #2 — Due 10/26/10 Chapter 8 Use the following information for questions 1-3: You want to rival Michael Dell and make billions of dollars manufacturing personal computers. You research the cost of buying equipment to assemble computers and find that there are two options. Option 1 is more automated so it costs more up front, but it takes less time (labor hours) to assemble each computer, resulting in a lower variable cost. Option 2 costs less up front, but takes more time to assemble each computer, resulting in a higher variable cost. The basic information is below: Fixed Cost Variable Cost {per Unit) Option 1 $5,000,000 $300 Option 2 $2,000,000 $600 1. What would the cost of each option be if you sold 8,000 computers? Which option would you choose? .p ‘ 4r 1 , 4 , WW1 i PC, + x/C.wcompms 2 “ 20mm + 300” 5W two/000 { Opi’t’" 25 FC?’ 4‘ VClx‘NLco "WM/4‘" ‘: I 2,000, 000 + ‘éoo Icy/000 Z é’XOOIOOO Cost Option 1 is: Cost Option 2 is: Choose Option (1 or 2): *émvvo 2. What is the cost of each option if you sold 12,000 computers? Which option would you choose? 01,55“ 1 .' {€000,000 +£300¥ly000 : Itgléooiaoo Ophonl" “2,000, 000 t {(900 “How '« 4"}, 200/ 002) Cost Option 1 is: Cost Option 2 is: Choose Option (1 or 2): 3. What is the indifference point (determine the number of computers where the cost of the two Options is equal)? FCIHIC' “#Lqu/Jvfrd : Fézi. chpfi (”MIN/{fig {CaiVC‘é’lfifiM‘S‘ u I; . , 5 - $ 9" 5,000,300 + 300 n flan/,4”; ' 2.000) Dan *‘QUOK’fiCornpr/{rri‘ Indifference Point is: _ 4! 3,000,000 ,_ [0 (900 #ComKu‘k/K ' “V ’ [0/000 (awn/vhf! 4. You are really not sure of how many computers you can sell, so you decide to assign some probabilities to the demand. You predict the following: Computer Sales Probability 7,000 25% 9,000 60% 12,000 15% Based on this prediction, draw the decision tree for Options 1 and 2. Make sure to draw and calculate each of the branches on the decision tree (i.e. cost of Option 1 for 7,000, 9,000 and 12,000; cost of Option 2 for 7,000, 9,000 and 12,000). Also calculate the expected value (demand outcome) of the two branches. Based on the expected value, would you choose Option 1 or Option 2? {0,1,92000 @2991 tiS'I~r\+"300»7ooo: “MM Demnj Sales: ‘I 000 a» (902,3 ‘ 9m “3.90 x a 000 : ‘ ‘7.“‘m I; Wham {abjzllow ., tsp/0 215,4H2w .42 000: (316M My" Sc (644' + if g“ "9 '100065729‘791 tam ”boo #7 00.9: 11.3!“ (9p um -65; Q beNénJ gait! 400..)(94094, ' {204*1900‘G’ 000: $77M who“ $2 QL7lL0dacai§/, ’2M+’éoo*1200o—$‘13M z 9V1: §,ch; = . 2§¥ 97.1,“ #190" “7.7/4 +.i§r-‘X.éM: “wezgm Eta" 35’ " ‘élww .50 c’7.w«+ ,:§ - “Iarx = ‘73370M Expected Value Option 1: Expected Value Option 2: Choose Option (1 or 2): 3 7.925!“ 57.370 m 09H” .1 5. For Options 1 and 2, if you could sell each computer for $700, what is your breakeven point? B€P _ FC. - ‘ 5,000,0w0 - R'VC, ’ ‘700’f300 u: '2. 5-00 comkaff PEP} ' «'VC‘L : i,700 ‘kéao - £01000 cJ-MPg/‘frf Breakeven Point 1: Breakeven Point 2: 6. You are running a JiffieLube oil change center. On average, the center can service 15 customers per hour and 12 customers arrive every hour. ) ; 42.4.3 (J “‘4‘ : l 1 cu 5+ / k ( What is the average utilization? M 3 Se r Wu, ref: : I g (.an /A r -. [2 Luff/Inf A 9 v: 55-“; A, -. ,30 W 30/0 "' d What is the average number of customers waiting in the waiting line? A 7' l 2. ‘ fl '- 3 D CW:/4(,q«,\) i§('§'l1v) : 3.1 Lu§+0w1§ What is the average number of customers in the waiting line system? >\ n 7. C; : A'A ‘- 19” ' L/ Cas+omcrr What is the average time spent waiting in the waiting line? T )x :— 'z___._..—— I 2; hf I Iémfav-‘t; alékf ur 3&5“... W 2/1044) ”((5—11) - What is the average time spent in the waiting line system? ~ I : —-L—————- : E kr I QOMTW‘kK 7. A new employee at JiffieLube changes the oil on the first car in 40 minutes. She changes the oil in the next car in 36 minutes. {(6 T4101: 3 (a I P“? ¢ ,1 3 ‘7 What is her learning rate? How long will it take her to change the oil in the 10th car? T Bého-q _ 0 LHQ: ‘f-1 1 Llama. ‘ .90 yr 90/: Tn : T n b : ancbeUkS x .70; : 3312045,. 2 3'2 0'12;ka How long will it take her to change the oil in the first 15 cars in total? 2 TA : T, énb : Vanni x H.339 : ygyjémfl— ~—7 5 HM; Chapter 9 Note: Round all forecasts to the nearest whole number (round up at .5 or above) 1. For Periods 4-6, calculate a 3 period moving average forecast Period Demand Forecast n ; 2: F r .2 D— 3 59 *“ °:‘ n 4 61 5 57 6 59 . D3+b1+b. _ §fi+é$+ €17 »_ 4 FL/’ is ~ 3 - g §7+ 6l+€9 _ g ‘é1+§?+é?_ ,:_._._———-——- 7 F5. 3 » 4' f; 3 3 Period Moving Average Forecast: Period 4: Period 5 Period 6: 2. For Periods 3-6, calculate a 2 period weighted moving average forecast with Wt = .70, WH= .30 Period Demand Forecast 1 56 n i 2: Em? WM-» 4 61 "f 5 57 6 59 F3: 1 .sz = .7xé3+~3*% = 4:! Pg: '7): 2:“ ,W’ éO *7: é+ ,nga = 90 Pg: Fe? 17" §74.3"él 2 Period Weighted Moving Average Forecast: Period 3: Period 4: Period 5: Period 6: H 3. For Periods 2-6, calculate an exponential smoothing forecast with 0: = .7 Period Demand Forecast 55 57 64 :2 12'. = control/i 71 76 0501-5de .7»?! +.’$xé5"=é‘i Exponential Smoothing Forecast: Period 2: Period 3: Period 4: Period 5: Period 6: €3WWEE€£ 4. For Periods 1-6, calculate AFN, an exponential smoothing forecast with Trend with ct = .7 and B = .4 (HINT: You can use the Forecast from problem 3 — you only need to calculate Trend and add it to Forecast to get AF — Formula 9.5). Round Trend to the nearestwholenumber. AF+H ; EH +11“ ;T;+I f I3(Feu’E>+0-B) T; Period Demand Forecast Trend Adiusted Forecast 1 55: b. 57 = F. 3:7. AE:F.+T,= $7r32é0 2 64 54, 1 § 5'7 3 60 e: 3 (a; 4 67 él ’ (c7— 5 71 gs 3. 9'7 6 éfi 3 ‘71. 76 T1: [WE-Ry (1,7?)1“, ; .L/x(sc,—§7)+.ex2 =( T}: .q(é2-Sé)+.é“l = 3 Tyr,b{(éi’é1)+'éxg: ‘ TS ~, .Wés'éll’né“ ‘ r 9- T— q(99’é,;)+.(axz : 3 b/ I Adjusted Exponential Smoothing Forecast: Period 1: Period 2: Period 3: Period 4: Period 5: Period 6: (¢ 0&5 m‘v‘i ’ F0 \ D’ [XI/1W“ 5. For the following data, calculate MAD and MFE (7 Period Demand Forecast FEL lFEo l 1 53 55 - I). 3 2 59 53 [a ‘0 3 60 58 :L 2 4 59 60 ‘- I i 5 63 59 q q 6 66 62 q t, L a 3&3" "3 VI = filFE‘cl 6 FE' .. ‘ ' n” _ in . t I 3 _ I‘H’E— '“ :T'DJL L - .3 (FE- l I <1 — Mflbvr—‘T—ij‘: 2M; MAD: MFE: 3 l t l 2 .l L 6. You are trying to determine an appropriate number of pizzas to order depending on the size of the student group. You tracked the number students as well as the number of pizzas eaten at the last 4 events. Use the following data to create a linear regression forecasting model to predict the number of pizzas needed. Express your answer as: y = a + bx. 7. X y X " Y X»)( at X # of Sggdents # of rszzas ‘3 1 9 I D 2 ‘l 44 13 S") 7. l Q 3 e 17 6 p o 1 2 8‘! 65 21 l 3 é S 1-! 2 7- S SY= ’53 2‘1: S19 5Xy: 335‘] fg‘127q7"! é): - Si}: ' I S 3 2 So ~th g,” : 339$? _ 23'3‘7-i‘3175't 384 ; 3] 4" n ‘Iqw- if“ 'WW- (9241 '133 F3 ’\ 5 x , _ » §Y_ '_~_ £3_ I93 .. 921-2“? ass-wax a=7 l>‘ n - v 3‘" «I "2- Using your linear regression forezlsting model, predict the number of pizzas needed for a gathering of 54 students. ge) Y 1 § 9 # Pizzas: , 6‘ A art‘s): 519$ 'Qggr» ,ZIYg‘f: I7/>{22a§ Chapter 10 Use the following information for questions 1-3: Your company has decided to analyze whether to continue managing and operating the cafeteria, or whether to outsource it to CafeteriaCo. CafeteriaCo will charge you an annual management fee of $750,000 plus charge you $5 per meal served. Your internal costs to operate the cafeteria on a yearly basis are listed below (assuming 80,000 meals): Operating Expenses Direct Labor $ 420,000 Benefits $ 75,000 Food $ 175,000 Indirect Labor $ 50,000 Equipment Depreciation $ 150,000 Overhead § 200,000 Total Cost $ 1,070,000 2 1“,. 5,, r4; 1. If you expect to serve 80,000 meals next year, would you insource or outsource (show your work)? _ ‘3' OuiSaurze : {73'0I000 +‘§/mw(*20,000 WC, 6/50/0052 Insource or Outsource: 2. If you expect to serve 125,000 meals next year (for insource: direct labor increases by $200,000, benefits increase by $40,000 and food by $100,000), would you insource or outsource (show your work)? 8“ J: ‘In 59”“ 951,070,000 + $200,000 + 90,000 «14/00/090 r 1,7,0, 000 vaSource -, <1[750,000 '1 55/404 X )zgoao «wk: $1,375,000 Insource or Outsource: 3. If a company manufactures televisions, would operating a cafeteria typically be considered a “core competency”? Yes or No: Use the following information for question 4: Summary Data for 3 possible suppliers Performance Dimension Supplier A Supplier B Supplier C Price 3 $550/unit 3 $350/unit 2 $450/unit Quality 3 1% defects l 8% defects I 6% defects Delivery 3 6 weeks i 15 weeks 7- 10 weeks Rating Values 1 2 3 Price >$500/unit $400-500/unit <$400/unit Quality >5% defects 2-5% defects <2% defects Delivery >12 weeks 8-12 weeks <8 weeks Wei hts Price Quality Delivery .4 .3 .3 4. Use the weighted-point evaluation system to calculate the weighted average performance for each supplier. Choose which supplier wins. 4mm" A: ,«m 4 .2» a + .24 : 2,1 é/MIIer 5: 448+ 3*!» ,3»! — 7.3} é/Mira C; 54*24 :3’I*.2*21|.‘[ Winning Supplier: Chapter 11 Your company is purchasing 50,000 pounds of steel from both Supplier 1 and Supplier 2 this year. Each late delivery costs your company $200 and each pound of defective material costs your company $400. Basic information on the two suppliers is provided below: Cost Category Supplier 1 Supplier 2 Price per pound $3.50 $4.00 Defect Rate 1/150 1/500 Late Deliveries/yr. 12 4 1. What is the Total Cost of Ownership for the year for Supplier l and Supplier 2? $ 4; - Tc.» (Wm 1): (‘ 3.9/4 k €0,000 “55 {753 " WW“ V0040? " W) ' $175,900 $13333; + ‘Z‘foo = ‘3“),722 TCO(§,/plfgr .71)" U L/_U/IL x sly/0‘29 “Q4215: “ 577/004 '55 “ “MN (‘0‘ ”0"): ‘3‘“). 700 Supplier l: Supplier 2: \vva 37ha/‘d-76n ‘—> \s . L ‘4 $2; ® :> ll $K'Ip rue-d1 j p 0/} K D. 5 LC}! a wk 2‘ Chapter 12 Use the following information for questions 1-3: Every week, BosssMustang of Oakland, California, receives one shipment each from 12 different suppliers in the Los Angeles area. Each shipment weighs about 700 pounds. A Los Angeles 3 PL provider has offered to run a consolidation warehousing operation for BosssMustang. The 3PL provider would pick up the shipments from each supplier, process them and put them on a single truck bound for Oakland. The pickup fee would be $120 per supplier, and the warehousing cost would be $40 per hundred-weight (per hundred pounds). A truck shipment from Los Angeles to Oakland costs $ 600. 1. How much does BosssMustang’s current transportation solution cost per week? l1 skip/nod; k {Elm/glowed 1 1r7, 7—00 CurrentCost: 2. How much does the 3 PL provider’s transportation solution cost per week? . c’ a . _ 2 r Puck VP . [IQ/(«meta ’° llSup/Lprs W '40 , '-&/~Lw" “(a 700A. 4: +(onsfilcdaié-OM art “55 ‘ [m V W; X 'lS‘u‘p merit 7’ 33L0 + sfi:PM‘~+ : I S-Lh'pmeaf' x (éwD/gkz‘pmf 1 $400 $’ 3PL’s Cost: g! go 0 3. Which solution would you choose? How much money would you save? Current or 3PL: Savings: (”5+ A a: V'w“ “I K Cvsf I Cuyf ? Use the following information for questions 4-6: Astro Industries of Minneapolis, Minnesota, makes weekly shipments to 9 customers in the Dallas area. Each customer’s order weighs, on average, 1400 pounds. A Dallas based warehousing firm has offered to run a break-bulk warehousing operation for Astro at the cost of $50 per hundred-weight. Local deliveries to each customer would cost $250 per customer. Astro would make 1 break-bulk shipment to the Dallas based warehousing firm each week. A direct shipment from Minneapolis to Dallas costs $1,500. 4. How much does Astro Industries’ current transportation solution cost per week? - f . _ ‘1 SL4, nwvu‘r " /§00/5lm‘,omwf- <4: [3:00 Current Cost: § 1 3 , $00 5. How much does the Dallas based warehousing firm’s transportation solution cost per week? Skfiemm‘ 5 l Shirwd KKIIS’OO/jkivomzqf‘: {1,920 , xso Moo IL Brmltbvlk ' [00" X skwmf Y’ Qékéomaif? : $ 4/200 Cuh‘prm, Dom/07: 42f0/‘0510M, delivery» 0] 2 9' 2,?ga Dallas Firm’s Cost: 6. Which solution would you choose? How much money would you save? Current or Dallas Firm: Savings: ...
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