OPERATIONS MANAGEMENT B3401
ASSIGNMENT # 1 (Total 100 points)
Due on Jan. 28, 2014 (Tuesday)
(Write your name, student #, section # in which you are registered)
Q1
. (Total 25 points)
Joanna is currently working a total of 8 hours per day to produce 270 dolls. She thinks
that by changing the paint used for the facial features and fingernails, she can increase the
rate to 360 dolls per day. Total material cost for each doll is approximately $3.50; she has
to spend $40 in the necessary supplies (expendables) per day; energy costs are assumed
to be only $4.00 per day; and she makes $10 per hour for her time.
a) Viewing this from a total (multifactor) productivity perspective, what is her
productivity at present and what is her productivity with the new paint in terms of dolls
per dollar?
(15 points)
b) If she uses the new paint, by what amount could Joanna’s material costs per doll
increase without reducing total (multifactor) productivity?
(10 points)
Q2.
(Total 50 points)
Suppose you (or your group) are the manager of a company trying to determine what
forecasting method to use. Based upon the following historical data, calculate the

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