Answer & Explanation:BUS 370 Homework 1.docx
bus_370_homework_1.docx
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BUS ADM 370
Introduction to Supply Chain Management
Homework 1 (25 points)
For all the problems, to receive full scores, you have to show your complete and accurate
work. If you only provide the final answers without showing your computations, you will
not be assigned a full score (or you will miss the opportunity of receiving partial credit).
Problem 1: Line Balancing (11 points)
First shift employees at General Motors work from 6am to 2pm Monday through Friday. Everyone on
the assembly line is allowed a 30 minute lunch and two 20 minute breaks, but other cross-trained
associates cover lunches and breaks for the associates on the assembly line so the line doesn’t stop. The
processes of the assembly line have the following dependencies:
Task
A
B
C
D
E
F
G
H
Predecessor
none
none
A
B
none
C
E
F, D, G
Average Time (sec)
45
90
110
120
100
15
115
35
The Plant Manager needs first shift to achieve an output of 100 cars.
a) Compute the Takt time for the line (2 points).
b) What is the theoretical minimum number of workstations? (2 points)
c) Draw the precedence diagram. Then assign tasks to work stations and you must use the largest
eligible task heuristic rule to break any ties. Show which tasks are assigned to each workstation
(3 points).
d) Compute the efficiency and percent idle time for the system (2 points).
e) What is the maximum output that could be achieved by a single assembly line in 8 hours? (2
points)
Problem 2: Forecasting (8 points)
Units Sold
Feb
1507
Mar
1233
Apr
1198
May
1426
Jun
1629
Jul
1374
Aug
1282
Given these sales figures over the last 7 months, your boss needs you to create a forecast model that
can be used to forecast sales in the future. Use three different forecasting methods (last period, 2
period moving average and 3 period moving average) to determine which forecasting method would be
best to forecast future sales. For your measure of “best”, recommend the company use the method
with the mean forecast error (MFE) closest to zero.
a) Calculate the MFE for each of the 3 forecasting techniques (6 points).
b) After you have selected the best forecasting method, what would you tell your boss is the
forecasted sales for September? (2 points).
Problem 3: Forecast Accuracy (6 points)
Your company released a new product in August. Prior to August, the Marketing Department provided
their forecasted sales. The product has been on the market for 5 weeks now and the table below shows
the actual sales and Marketing’s forecast of units sold.
Week
1
2
3
4
5
Forecasted
Actual Sales
Sales (units) (units)
900
1,492
1,500
1,528
2,200
2,316
2,200
1,945
2,500
2,487
a) Calculate the MAD for the forecast (3 points).
b) Calculate the MAPE for the forecast (3 points).
…
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