OPMA 3306-008 Fall 2018 Assignment 1 Total points: 100 (Show your work for numerical questions to get full credit) 1. What do you mean by triple bottom line? Explain in detail. (10 points) People, profit, planet. Means to make profits you need to have a good reputation, think about society, social aspects, economical aspects and environmental aspects. 2. What is meant by the expression order winners and order qualifiers? What was the order winner(s) for your last purchase of a product or service? Provide appropriate reasoning (10 points) Order qualifiers are those dimensions that are necessary for a firm’s products to be considered for purchase by customers. Order winners are criteria used by customers to differentiate the products and services of one firm from those of other firms. Buying a new Tv, the qualifiers were, it had to be a flat screen, 70in screen, LED, UHD. The order winner was the free 2 month Netflix subscription that came with the TV. This made the TV stand out as it had the same specs as the other brands of TVs. 3. Various financial data for Sun Path Manufacturing for 2012 and 2013 follows: 2012 2013 Output: Sales $300,000 $330,000 Inputs Labor $40,000 $43,000 Raw Materials: $45,000 $51,000 Energy: $10,000 $9,000 Capital Employed: Other: $250,000 $2,000 $262,000 $6,000 A. What is the percentage change in SunPath's total productivity measure between 2012 & 2013? (3 points) % change Formula = ((y2-y1)/y1) * 100 Productivity formula = total outputs / total inputs 2012 Total output = $300,000 2012 Total input = $347,000 Productivity = $300,000 / $347,000 = 0.86 2013 Total output = $330,000 2013 Total input = $371,000 Productivity = $330,000 / $371,000 = 0.89 Change = (0.89 - 0.86) / 0.86 = 3.49% B. What is the percentage change in the energy partial productivity measure for SunPath between 2012 & 2013? (3 points) % change Formula = ((y2-y1)/y1) * 100 Productivity formula = total outputs / total inputs 2012 Total Output = $300,000 2012 Energy Input = $10,000 Productivity = $300,000 / $10,000 = 30 2013 Total Output = $330,000 2013 Energy Input = $9,000 Productivity = $330,000 / $9,000 = 36.67 Change = (36.67 - 30) / 30 = 22% C. What is the percentage change in the multifactor labor and raw materials productivity measure for SunPath between 2012 & 2013? (4 points). 2012 Total Output = $300,000 2012 multifactor labor and raw materials = $85,000 Productivity = $300,000 / $85,000 = 3.53 2013 Total Output = $330,000 2013 multifactor labor and raw materials = $94,000 Productivity = $330,000 / $94,000 = 3.51 Change = (3.51 - 3.53) / 3.53 = -.53% 4. Why is forecasting necessary in Operations and supply chain management (OSCM)? Explain in detail. (10 points) By being able to forecast well you can reduce inventory stockouts or have very low inventory cost by knowing how much you will be able to sell. It is impossible to be 100% accurate on a forecast. Having less inventory cost and less stock outs will give you the ability to increase profit since your cost will be driven down. 5. Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note that the 1st quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec. 6. Consider the monthly sales data of a company for last year as well as first six month data for current year. Use a three- quarter weighted moving average, Forecast the sales of company for 3rd Quarter of current year. Use Weights of 4/7, 2/7 and 1/7, giving more weight to more recent data. Note, the 1st quarter is Jan, Feb and March , 2nd quarter is Apr, May, June, 3rd quarter is July, Aug and Sept, and 4th quarter is Oct, Nov and Dec. (10 points) April- 190(1/7) = 27.14 May – 200(1/7) = 28.57 June – 190(1/7) = 27.14 May – 200(2/7) = 57.14 June – 190(2/7) = 54.29 July – 193(2/7) = 55.14 June – 190(4/7) = 108.57 July – 193(4/7) = 110.29 Aug. – 190(4/7) = 108.57 July = 192.85 or 193 August = 190.15 or 190 Sept. = 190.85 or 191 7. Assume that your stock of sales merchandise is maintained based on the forecast demand. If the distributor’s sales personnel call on the first day of each month, compute your forecast sales by each of the three methods requested here. a. Using a simple three-month moving average, what is the forecast for September? (3 points) b. Using a weighted moving average, what is the forecast for September with weights of .20, .30, and .50 for June, July, and August, respectively? (3 points) c. Using single exponential smoothing and assuming that the forecast for June had been 130, forecast sales for September with a smoothing constant of .30. (4 points) 8. Historical demand for a product is: (Solve manually, not using excel). (10 points) a. Using simple linear regression analysis, calculate the regression equation for the preceding demand data. b. Using the regression equation in d, calculate the forecast for July. 9. Given the forecast demand and actual demand for 10-foot fishing boats, compute the tracking signal and MAD. (10 points) Month Forcast Actual Demand Demand January 80 73 February 71 76 March 85 103 April 82 82 May 86 78 June 83 71 Month Forecast Actual Deviation RSFE Abs. Dev. Sum of Abs. Dev. MAD TS 1 80 73 -7 -7 7 7 7 -1 2 71 76 +5 -2 5 12 6 -.33 3 85 103 +18 +16 18 30 10 1.6 4 82 82 0 +16 0 30 7.5 2.13 5 86 78 -8 +8 8 38 7.6 1.05 6 83 71 -12 -4 12 50 8.33 -.48 10. Explain the different types of supply chain risk and the risk mitigation strategies. (10 points)
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