Summation Notation
The capital sigma, , means "sum up
( means sum up the values of Xi).
Given a set of n numbers, symbolized as X1, X2, X3, Xn,
their sum may be expressed as:
Xi =
= X1 + X2 + X3 + X4 +.Xn
(Example)
The random set of three numbers, Xi = 2,
Summer 2015
William G. Rohrer College of Business
Course No:
MGT 06305-1 (CRN 3013)
Course Title: Operations Management
Experience Personal Learning. Experience Your Future.
OPERATIONS MANAGEMENT
Course No. 0506.305 (01) 07:00-09:30 P.M. (Tuesday & Wednes
SAMPLE TEST - BUSINESS FORECASTING .
_ 1. The zero value of coefficient of determination indicates an absence of any relationship between two variables.
_ 2. When using a simple moving average to forecast demand, one would give equal weight to all demand
OM EXERCISE HW (5): LINEAR PROGRAMMING (20 pts.)
Name: _
Note: Clearly (1) plot each constraints, (2) iso-profit (or iso-cost) line, (3) feasible solution area,
(4) optimal solution points in the graph, and (5) give its final profit (or cost) based on
its
OM TEST - DECISION MAKING TOOLS
_ 1. EVPI is the difference between expected profit under perfect information (EVwPI) and
the minimum Expected monetary value (EMV).
_ 2. In decision trees, circular nodes are used to denote a chance event (i.e., state of n
Dr. Jooh Lee
What is Forecasting ?
The art and science of predicting future
events.
Forecasts are estimates of the
occurrences, timing, or magnitude of
uncertain future events.
Underlying basis of all business decisions
Forecasting Activities
Forecast
Operations Management
Introduction
to
OperationsManagement
Dr.JoohLee
What Is Operations Management?
Operations management is the set of all
activities that creates value in the form of
goods and services by transforming inputs
into outputs
Operations is
DecisionMakingTools
Dr.JoohLee
Operations Decision Making
Decision making implies the selection of a
preferred course of action from among alternatives.
The amount and type of analysis given to the
decision depend on:
1. The significance of the decision
Linear Programming
for
Resources Allocation
Dr. Jooh Lee
What is Linear Programming?
Mathematical technique for optimizing the
objective function with respect to constraints.
Not computer programming
Allocates scarce resources to achieve an
objective
P
Dr. Jooh Lee
Business Forecasting
Causal (Associative) Model
Incorporates variables or factors that might influence
the quantity being forecast
Regression & Correlation
More powerful than time series methods because more than
historic values are used to
OM EXERCISE HW (1): SUMMATION AND BASIC STATISTICS (15 pts.)
Name:
1. Given the random set of three numbers, Xi = 2, 3, and 4, whats the value of (Xi + 1)2?
(3pts)
2. Given the following two pairs of observations, give your answer to the following summati
OM EXERCISE HW (4): BUSINESS FORECASTING
Name:
Exercise HW Problem: Trend Projection & Forecast Accuracy (15 pts.)
Given the following data, use the least squares methods to derive a trend projection. What is your
estimated of the demand in period 7? (Not
OM EXERCISE HW (2): DECISION MAKING TOOLS
Name:
Exercise HW Problem (Show a full process for a full credit) 15 pts.
Alternatives
Large Stock
Average Stock
Small Stock
Final Decision
State of Nature
Big
Average
(0.2)
(0.5)
$70,000
$ 60,000
50,000
40,000
60
OM EXERCISE HW (3): BUSEINSS FORECASTING (15 pts.)
Name:
Exercise HW Problem: Time Series (15 pts.)
Demand for heart transplant surgery performance at Kennedy Hospital has increased steadily in the
past few years as seen in the following tables.
Year
1
2