Chapter 1
3 types of business ownership
- Sole proprietorship
- Partnership
o General
o Limited
- Corporation
Advantages
Sole Proprietorship
- Easiest to start
- Least regulated
- Single owner keeps
a
2. a.
y = 0.5x + 16.857
25
20
15
Sales
Linear (Sales)
10
5
0
Feb
b.
Mar
Apr
May
Jun
Jul
Aug
(1) Instead of manually calculating a and b, we will use Excels Add Trendline
function in the Chart Menu: Y
3.
Desired output = 4 units per hour
Operating time = 56 minutes per hour
CT =
[4]
Operating time
Desired output
56 minutes per hr.
4 units per hr.
=
3
[3]
[3]
2
a
b
[3]
= 14 minutes per unit
4
c
7
[2
2.
OT = 1.2 minutes
PR = .95
A = 10% of work day
1
1
AFday =
=
= 1.11
1A
1 0.1
a. OT = 1.2 minutes
b. NT = OT x PR = 1.2 x .95 = 1.14 minutes
c. ST = NT x AFday = 1.14 x 1.11 = 1.27 minutes
3.
AFday =
1.
a.
i. Utilizatio n =
Actual output
7
=
= 70%
Design capacity 10
Efficiency =
Actual output
7
= = 87.5%
Effective capacity 8
ii. Utilizatio n =
Actual output
4
= = 66.7%
Design capacity 6
Efficiency
12/14/2008
CHAPTER 1:
Introduction
to
Operations
Management
What Is Operations Management?
Operations management is the
management of processes or systems
that create goods and/or provide
services.
Sl
A company is considering buying a cell phone and phone service plan. There are three service plan s
available, all of which have a monthly charge of $20. The additional costs for the plans are shown i
CHAPTER 5
SUPPLEMENT:
Decision
Analysis
Slides prepared by
Romulus Cismaru
University of Regina
Introduction
Decision Theory Elements
A set of possible future conditions
exists that will have a bear
ExampletoDoForNextClass:
Returnfromstockinvestment
Cow Corp. is forecast to pay a $4 dividend every quarter
over the next year. You just bought 100 shares for $100
per share. If you can sell for $102.
Chapter13
Risk & Return
1
LearningObjectives
Calculate expected returns and variance of
returns for individual securities and for
portfolios of securities
List the effects of diversification
Define co
Chapter6
Discounted Cash Flow Valuation
1
LearningObjectives
Value annuities and perpetuities
Compute loan payments
Find the interest rate on a loan
Describe how loans are amortized (paid off)
Convert
MortgageExample1
You have just applied for a $120,000 mortgage. The
quoted rate is 6% and you have chosen to amortize
over 15 years. What will be your monthly payment?
Your
banker suggests that you am
Chapter5
Time Value of Money
1
LearningObjectives
Compute the return on an investment
Compute the number of periods that equates
a present value and a future value given an
interest rate
Compute FV or
Q9fromtextbook
A project that provides annual cash flows of
$14,000 for nine years costs $70,000.
Is this a good project if the required return is 8%?
At which required return would we be indifferent
Lecture 3
Week 2
Chapter 2
Describing shape of a
distribution
Stem-and-leaf: main unit is stem, so that
there will be 5 to 20 stems. Subsequent
unit is leaf.
Example 1: GPA data.
Histogram (or frequen
Lecture 10
Ch. 4 Section 4.3-4.5
Examples of binomial
experiment
Number of girls in a family of 4 children
Number of international students in a
sample of 10 students.
Number of laser jet printers in
Lecture 14
Ch. 6. Sampling
distributions
Sampling distribution for sample
mean
Example1
Example 2: Fuel efficiency
A midsize car model maker claims that its
mean fuel economy (MFE) is less than
7.6L/1
Lecture 13
The exponential
distribution
Relation to Poisson distribution
Formulas
Another example
Patients arrive at a hospital emergency
room according to a Poisson distribution.
Records show that on
Lecture 8
Ch. 3 (Cont)
Multiplicative rule
An other example
Example 2: A dryer and a washer
independently work properly with
probability .95 and .85 (respectively).
What is the probability that (a) bo
Lecture 2
Week 2
Finish Chapter 1
Brief Intro to Survey methods
Survey is a questionnaire: specific variable
Examples: Likart scale for job satisfaction,
or StatCan surveys.
Purpose of a survey: get r
Lecture 12. Ch. 5 (Cont)
More examples on
normal distribution
One more example on normal
distribution: Stocking energy
Weekly demand at rink for a brand of
d a store
energy drink is approximately norm
Lecture 4
Ch 2 (Continued)
How to interpret standard
deviation
q
Small std little variability between data
Big std large variability (spread)
between data.
Example: Compute std for and compare
hourly
Lecture 9
Ch. 4 Discrete random
variables
Examples
A discrete random variable (RV) is a count
variable. For example:
Number (out of 10 injured ) who will need
to stay in a local Ottawa general hospita
Lecture 6
Ch 2 (end of ) and
beginning of Ch. 3
Describing qualitative data
Pie chart and bar chart.
Example: Canadian forces distribution per
province and overseas (OS). (See
minitab file for data: p