MGT311: Introduction to Operation Management

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Introduction to Operation Management

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Q1 Understand the concept of process selection, forecasting, capacity planning, production forecast methods and schedule operations


Q2 Develop numerical skills needed to analyze complex data of process design, quality management, capacity & scheduling planning to navigate in challenging situations


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Department of Business Administration Semester 1st , 2018-19 Course Name: Introduction to Operation Management Assignment No: 3: Submission Date by students: Before the end of Week-13 Place of Submission: Students Grade Centre Weight: 5 Marks Learning Outcomes: Q1 Understand the concept of process selection, forecasting, capacity planning, production forecast methods and schedule operations (LO 1.2 & 1.3) Q2 Develop numerical skills needed to analyze complex data of process design, quality management, capacity & scheduling planning to navigate in challenging situations (LO 4.1) Part 1The weekly demand for hamburgers at a Fast-food during the latest six weeks has been recorded in the following table Question 1. a. Forecast the demand for week 7 by using a five-period moving average. b. Forecast the demand for week 7 by using a three-period weighted moving average. Use the following weights to obtain your forecast: W1 =0 .5, W2=0.3, W3 =0.2. c. Forecast the demand for week 7 by using exponential smoothing. Use an alpha value of 0.1 and assume that the forecast for week 6 was 600 units. Part 2: This fast food company has a labor force of 10, which can produce 500 units per period. The cost of labor is now 2400SR per period per employee. The company does not allow overtime. The product cannot be subcontracted As a result, the company can increase or decrease production only by hiring or laying off employees. The cost is 5000SR to hire an employee and 5000SR to lay off an employee. Inventory-carrying costs are 100SR per unit remaining at the end of each period. The inventory level at the beginning of period 1 is 300 units. The forecast demand in each of six periods is given in the table below. Question 2. Compute the costs of a chase strategy and the cost of a level strategy and compare the two strategies.
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