Operation Management Exam 2

Prof. P. Billington 2.1

DIRECTIONS: Answer all questions; show all work for credit on sheets of paper you provide. You do not need to return this exam sheet except for graphs drawn or tables filled in. This is a 175 point exam with the points shown in parentheses. All textbook references are to the 11th edition of Operations Management by Heizer and Render.

You must show all calculations on paper to receive full credit on any part.

1. (20 points) Do problem 4.7 on page 141 of the textbook. Answer the following:

a) Forecast the number of patients for next week using a 2 week moving average.

b) Compute the forecast for week 7 using exponential smoothing, an initial forecast for week 1 of 62 patients and α = 0.5

Each worth 10 points.

2. (50 points) Do problem 4.11 on page 142 of the textbook. Repeat the calculations using smoothing constants of 0.1 and 0.5. Do parts a) and b) also.

3. (90 points) Do problem S7.25 on page 319 of the textbook with the following change. They have discovered that the cost of the mechanized process were incorrect, and are now $70,000 for the fixed cost per month and $1.30 variable cost per unit.

Do all parts and then add a diagram of the costs for each process as a function of volume. 10 points each part and the diagram.

4. (15 points) Answer question 16 on page 453 of the text.

chart

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