Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Chapter 9
Layout Decision
The objective of layout strategy is to develop an
effective and efficient layout that will meet the firms
competitive requirements.
Layout design must consider how to achieve the
following:
1. Higher utilization of space, equipme
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Chapter 17
Maintenance and Reliability
Decisions
Maintenance and Reliability
Maintenance is all activities involved in
keeping a systems equipment in working
order
Reliability is the probability that a machine
will function properly for a specified time
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Chapter 8
Location Decisions
The strategic importance of location
The objective of location strategy is to maximize
the benefit to the firm.
Location greatly affects both fixed and variable
costs.
Location options:
1. Expanding an existing facility instea
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Chapter 11
Managing the Supply Chain
The Supply Chains Strategic
Importance
Supply chain management is the integration
of the activities that procure materials and
services, transform them into intermediate
goods and final products, and deliver them
throu
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Chapter 4
Forecasting Demand
Forecasting is the art and science of predicting
future events.
Forecasting Time Horizons
1. Shortrange forecast:
A time of up to 1 year but generally less
than 3 months.
Used for planning purchasing, job
scheduling, workforc
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Chapter 5
Product Design
Product Strategy Options Support Competitive
Advantage
Product decision includes the selection, definition,
and design of products.
The objective of the product decision is to develop
and implement a product strategy that meets th
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Chapter 1
Introduction to Operations
Management
Production is the creation of goods and services.
Operations management (OM) is the set of activities
that creates value in the form of goods and services
by transforming inputs into outputs.
All organizatio
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Chapter 4B
Forecasting Demand
Seasonal Variations in Data
Regular upward or downward movements in a
time series that tie to recurring events.
Seasonality may be applied to hourly, daily, weekly,
monthly, or other recurring patterns.
Fast food restaurant
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Handout for POM 102: Project Management
On March 31 last year, Mary Jackson burst into the family living room and announced
that she and Larry Adams (her college boyfriend) were going to be married. After recovering
from the shock, her mother hugged her
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
41747_ch11case02
5/3/02
2:31 PM
Page 1
CASE FOOD KING
Based in Charlotte, North Carolina, the Food King grocery supermarket chain stretches from the Virginias down
the East Coast into Florida. As in the rest of the country,
the grocery supermarket industr
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
POM 102/104 Production & Operations Management
1.
Project Management Seatwork
A project consists of 10 activities, lettered A through J, as shown in the accompanying
precedence diagram, with the activities on the arrows. For each activity, the determinist
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
POM102: Productions & Operations Management Formula Sheet
Scheduling
Assignment Method of Linear Programming
(Hungarian Method)
1. Subtract the smallest number in each row from every number in the row. Enter the results in a new
table.
2. Subtract the sma
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
POM 102/104: Production Operations Management
M. Tan
The Transportation Model Formula Sheet & Seatwork
Sarah Dizon, president of The Builders Concrete Company, has plants in three locations and is
currently working on three major construction projects, lo
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
POM104 Long Exam # 1 part 1
I. Multiple Choice. Answers should be written in printed capital letter.
1. The location of the median is similar to the location of the
a. third quartile
b. second quartile
c. fifth decile
d. A & C
e. fiftieth percentile
f. B,
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Production & Operations Management
MRP & AggPlan Seatwork
AGGREGATE PLANNING
Assume the forecasts were given below. Assume 20 workdays per month, 8 hours/day.
Demand Forecast
Jan
500
Feb
600
Mar
950
Costs
Apr
800
May
900
Jun
500
TOTAL
4250
Inventory holdi
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Productions & Operations Management
Inventory Management Seatwork
Problem # 1: The maintenance department of a large hospital uses about 816 cases of liquid cleanser
annually. Ordering costs are $12, carrying costs are $4 per case a year, and the new pric
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Productions & Operations Management
Forecasting Formula Sheet
The Naive Approach
Where Ft = forecast for period t
At1 = actual demand for period t1
Ft = At1
Moving Averages
Demand in previous n periods
Moving Average =n
Weighted Moving Average : simi
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
POM 102/104: Capacity Planning Seatwork problems:
M. Tan
1.
The Crystal Sparkle Co. produces glass tumblers. The plant Is designed to produce 400
tumblers per hour, and there is one eighthour shift per working day. However, the plant does
not operate for
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
POM 102/104: Statistical Process Control Seatwork
M. Tan
PROBLEMS
1.
The Perfect Circle Company manufactures bushings. Once each hour a sample of 125 finished bushings is
drawn from the output; each bushing is examined by a technician. Those which fail ar
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Period
Forecast
Output
Regular
Overtime
Subcontract
OF
Inventory
Beginning
Ending
Average
Jan
500
Feb
600
Mar
950
Apr
800
May
900
Jun
500
Jan
500
Feb
600
Mar
950
Apr
800
May
900
Jun
500
Backlog
Costs:
Regular
Overtime
Subcontract
Hiring
Firing
Inventory
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
POM 102: Facilities Layout Seatwork:
1. Given the following table:
Task
S
H
Z
E
K
D
L
Q
P
C
Time (minutes)
5
10
15
20
13
6
6
12
15
18
Elements must follow
L
E
E
Q,P,S
K
K
D
D,L
H,Z
a.) Draw the precedence diagram for product layout.
b.) Compute for minimu
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
POM104 LT2
Name:_
A
B+
92  100
86  91
B
C+
80 85
73  79
C
D
65  72
60  64
1. Kenneth is an experienced marketing manager who in the past has made the following subjective
forecasts of demand for special chocolate candies in thousands of units: (50%)
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
POM102/104 Statistical Process Control Formula Sheet
Chart
P Chart
Mean Chart
If is Unknown
Mean Chart
If is Known
C  Chart
n
A2
2
1.88
Center Line (CL)
Lower Control Limit
Upper Control Limit
p
p 3 p
p + 3 p
Mean
CL A2 R
CL + A2 R
Mean CL 3 x
Mean
c3 c
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Productions & Operations Management
Facilities Layout Formula Sheet
5.
Before each assignment, use the following criteria
to determine which tasks are eligible to be assigned
to a workstation:
a.) All preceding tasks in the sequence have been
assigned.
b.
Quantitative Methods and Production/Operation Applications
POM 104

Fall 2016
Inventory Management Formula Sheet
1.
Economic Order Quantity Model
EOQ Model =
D = Annual Demand
S = Ordering Cost
2DS
Q=
H
Annual Carrying Cost
H = Carrying Cost
(Q/2)H
(D/Q)S
(Q/2)H + (D/Q)S
Annual Ordering Cost
Total Inventory Cost = Carrying + Orderi