BADM 425 Problem 1, 2, 3, 4 Solution (A Rated)

Problem 1

The weekly output of a production process is shown below, together with data for labor and material inputs.  Overhead is charged weekly at the rate of $1500 plus 0.5 times direct labor cost. Assume a 40-hour week and an hourly wage of $16. Material cost is $10 per running foot. Compute the multi-factor productivity for the process for each week and compute the percentage change in productivity from week 1 to week 2.

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Problem 2

Barbi Dahl, chief prognosticator for OBM (Obsolete Business Machines) Inc., wants to forecast this year’s demand for manual typewriters based on the following historical data:

                What is Barbi's forecast for 2013 using a linear trend equation?

Problem 3

A convenience store posted the following figures for gasoline sales in gallons over the past 4 days compared to its forecasted sales using two different forecast methods:

            DAY                ACTUAL SALES                    FORECAST 1             FORECAST 2

             1                                 580                                      610                             570

             2                                 620                                      620                             625

             3                                 550                                      600                             560

             4                                 610                                      590                             615

Using MAPE as the accuracy measure, which forecast is “best”.  You must show your work.

Problem 4

Consider a production line that is to be used for 10 hours per day in order to meet forecasted demand of 900 units per day.  The following precedence diagram with times in seconds describes the tasks necessary to produce this product:

For output equal to forecasted demand, what is the % idle time and efficiency of this line if tasks are assigned to workstations using the longest task time rule?