undefined Iscom 305 week 5 operations management problem exercises.docx Question 11-1
Describe in general terms, how you think the distribution system, for Mcdonald’s works?
Problem 12-1
The Hartley-Davis motorcycle dealer in the Minneapolis–
St. Paul area wants to be able to forecast accurately the demand
for the Roadhog Super motorcycle during the next
month. From sales records, the dealer has accumulated the
data in the following table for the past year.
|
Month |
Motorcycle sales |
|
January |
9 |
|
February |
7 |
|
March |
10 |
|
April |
8 |
|
May |
7 |
|
June |
12 |
|
July |
10 |
|
August |
11 |
|
September |
12 |
|
October |
10 |
|
November |
14 |
|
December |
16 |
a. Compute a three-month moving average forecast of
demand for April through January (of the next year).
b. Compute a five-month moving average forecast for
June through January.
c. Compare the two forecasts computed in parts (a) and
(b) using MAD. Which one should the dealer use for
January of the next year?
Problem 14-26
Fun ’n Games is a large discount toy store in Fashion City
Mall. The store typically has slow sales in the summer
months that increase dramatically and rise to a peak at Christmas.
However, during the summer and fall, the store must
build up its inventory to have enough stock for the Christmas
season. In order to purchase and build up its stock during the
months when its revenues are low, the store borrows money.
Following is the store’s projected revenue and liabilities
schedule for July through December (where revenues
are received and bills are paid at the first of each month).
|
Month |
Revenues |
Liabilities |
|
July |
$20,000 |
$60,000 |
|
August |
30,000 |
60,000 |
|
September |
40,000 |
80,000 |
|
October |
50,000 |
30,000 |
|
November |
80,000 |
30,000 |
|
December |
100,000 |
20,000 |
At the beginning of July the store can take out a sixmonth
loan that carries an 11% interest rate and must be
paid back at the end of December. (The store cannot reduce
its interest payment by paying back the loan early.)
The store can also borrow money monthly at a rate of 5%
interest per month. Money borrowed on a monthly basis
must be paid back at the beginning of the next month.
The store wants to borrow enough money to meet its cash
flow needs while minimizing its cost of borrowing.
a. Formulate and solve a linear programming model for
this problem.
b. What would be the effect on the optimal solution if
the store could secure a 9% interest rate for a 6-month
loan from another bank?
Question 15-1
Describe a production environment in which MRP would
be useful. Describe a production environment in which
MRP would not be useful.
Question 15-2
Explain with an example the difference between dependent
and independent demand.
Question 15-3
What are the objectives, inputs, and outputs of an MRP
system?
