QUESTION 1 The table below shows the sales figures for a brand of shoe over the last 12 months. Months Sales January 69 February 75 March 86 April 92 May 95 June 100 July 108 August 115 September 125 October 131 November 140 December 150 a. Using the following, forecast the sales for the months up to January the following year:- i. A simple three month moving average. ii. A three period weighted moving average using weights of 1, 2 and 3. Assign the highest weight to the most recent data. iii. Exponential Smoothing when α= .6 and the forecast for March is 350. iv. Determine which of the three forecasting technique is the most accurate using MAD. b. The following table shows the number of televisions sold over the last ten years at a local electronic store. YEAR TV SALES 1 150 2 300 3 480 4 600 5 630 6 640 7 700 8 825 9 900 10 980 i. Using trend projection, develop a formula to predict sales for years 11 and 12. You have to show all working. You will need to develop a table to calculate the slope and the intercept. ii. Use that formula to forecast television sales for years 11 and 12. QUESTION 2 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Location A B C D Fixed Costs 60,000 80,000 100,000 130,000 Variable costs/unit 30 20 15 10 a. i. Write an equation to represent the total costs for each location. ii. Draw the total costs lines for each location on the same axes. (Use output ranges of 200, 400, 600, 800 etc. and intervals of $50,000 on the Y axis. iii. Over what range of output is location A the most preferred location? iv. Over what range of output is location B the most preferred location? v. Over what range of output is location C the most preferred location? b. A food manufacturer wants to locate a warehouse to serve its major customers. The customers, annual volume and the X and Y coordinates are shown in the table below. Customer Annual Volume X-Coordinate Y-Coordinate Judy Inc 25 3 7 Zac Supermarket 13 5 2 Harry Inc 6 8 4 Sky Productions 4 1 5 i. Using the centre of gravity location technique, determine the location coordinates that will minimize the transportation costs for their family of products. QUESTION 3 Mr. John produces a special type of shoes on an assembly line. The process involves eight different tasks. Mr. John would like to increase productivity on this line and asked you for some assistance. He would like to balance the assembly line in order to reduce idle time and increase efficiency. a. What information would you need in order to demonstrate to Mr. John how to balance the assembly line? b. Setup an example that will be used to demonstrate to Mr. John how to balance the line. c. Using the example that you setup in “b” above, demonstrate to Mr. John how to balance the line using the LOT heuristics. d. Based on the example above, calculate the efficiency of the line. QUESTION 4 a. Explain any two process technologies for materials. b. Discuss any three factors that will help to determine the type of production process used. c. Distinguish between design capacity and effective capacity. Provide a brief example. d. Why is the capacity decision important? e. A regional bank training center has the physical ability to handle 1,300 participants. However, management personnel believe that only 1,100 participants can be handled effectively for most training sessions. The last training session, although forecasted to have 1,000 participants, resulted in the attendance of only 990 participants. Calculate the utilization and efficiency of the training facility.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
QUESTION 1
The table below shows the sales figures for a brand of shoe over the last 12 months.
Months Sales
January 69
February 75
March 86
April 92
May 95
June 100
July 108
August 115
September 125
October 131
November 140
December 150
a. Using the following, forecast the sales for the months up to January the following year:-
i. A simple three month moving average.
ii. A three period weighted moving average using weights of 1, 2 and 3. Assign the
highest weight to the most recent data.
iii. Exponential Smoothing when α= .6 and the forecast for March is 350.
iv. Determine which of the three
MAD.
b. The following table shows the number of televisions sold over the last ten years at a
local electronic store.
YEAR TV SALES
1 150
2 300
3 480
4 600
5 630
6 640
7 700
8 825
9 900
10 980
i. Using trend projection, develop a formula to predict sales for years 11 and 12. You
have to show all working. You will need to develop a table to calculate the slope and
the intercept.
ii. Use that formula to forecast television sales for years 11 and 12.
QUESTION 2
1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open
a plant in the coming year. He has four locations in mind. The costs information for
these locations is in the following table.
| Location | A | B | C | D |
| Fixed Costs | 60,000 | 80,000 | 100,000 | 130,000 |
| Variable costs/unit | 30 | 20 | 15 | 10 |
a.
i. Write an equation to represent the total costs for each location.
ii. Draw the total costs lines for each location on the same axes. (Use output ranges
of 200, 400, 600, 800 etc. and intervals of $50,000 on the Y axis.
iii. Over what range of output is location A the most preferred location?
iv. Over what range of output is location B the most preferred location?
v. Over what range of output is location C the most preferred location?
b. A food manufacturer wants to locate a warehouse to serve its major customers.
The customers, annual volume and the X and Y coordinates are shown in the
table below.
| Customer | Annual Volume | X-Coordinate | Y-Coordinate |
| Judy Inc | 25 | 3 | 7 |
| Zac Supermarket | 13 | 5 | 2 |
| Harry Inc | 6 | 8 | 4 |
| Sky Productions | 4 | 1 | 5 |
i. Using the centre of gravity location technique, determine the location
coordinates that will minimize the transportation costs for their family of
products.
QUESTION 3
Mr. John produces a special type of shoes on an assembly line. The process involves eight
different tasks. Mr. John would like to increase productivity on this line and asked you for some
assistance. He would like to balance the assembly line in order to reduce idle time and increase
efficiency.
a. What information would you need in order to demonstrate to Mr. John how to balance
the assembly line?
b. Setup an example that will be used to demonstrate to Mr. John how to balance the line.
c. Using the example that you setup in “b” above, demonstrate to Mr. John how to
balance the line using the LOT heuristics.
d. Based on the example above, calculate the efficiency of the line.
QUESTION 4
a. Explain any two process technologies for materials.
b. Discuss any three factors that will help to determine the type of production process
used.
c. Distinguish between design capacity and effective capacity. Provide a brief
example.
d. Why is the capacity decision important?
e. A regional bank training center has the physical ability to handle 1,300 participants.
However, management personnel believe that only 1,100 participants can be handled
effectively for most training sessions. The last training session, although forecasted to
have 1,000 participants, resulted in the attendance of only 990 participants. Calculate
the utilization and efficiency of the training facility.
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