OPERATIONS AND SUPPLY CHAIN MANAGEMENT Assignment 1

MGMT 3306

Assignment 1 (Due at 11:59 pm June 16 CST)

Instructions:

1. Please answer the assignment questions in this docx file and save once you’re satisfied. Assignment 1 covers the lectures slides for Week 1 and Week 2.

2. There are three assignment problems. Please follow the instructions given at the end of each question if any.

3. To submit your assignment, go to “Assignments” on the left panel of the course homepage. Then

1) Click on the bold link “Assignment 1” to open;

2) Go down to Section 2 “Assignment Materials” on the webpage you’re directed to;

3) Click the button “Browse My Computer” in Section 2 and upload your document;

4) Scroll down to the bottom of the webpage and click the grey button “Submit” in Section 3 “Submit” to complete the submission.

4. To resubmit your assignment, simply click to open “Assignment 1” again and click the grey button “Start New Submission” on the upper right corner of the “Review Submission History” webpage you’re directed to. You can make as many submissions as you like before the due time. Only the last submission will be graded.

Assignment Problems (120 points in total):

1. Upton Manufacturing makes 2,000 tires per day with the following resources:

Resources
Labor	400 hours per day @ $20 per hour
Raw Materials	20,000 pounds per day @ $2 per pound
Energy	$10,000 per day
Capital	$8,000 per day

(a) What is the capital productivity? Please provide the formula for calculating productivity, at least one step of calculation, and the correct answer for full credit. (6 points)

(b) What is the total productivity in this problem? Please provide the formula for calculating productivity, at least one step of calculation, and the correct answer for full credit. (6 points)

2. Suppose a project consists of the following activities.

Activity	Immediate Predecessors	Time (Days)
A	None	5
B	None	8
C	A	4
D	B, C	6
E	B, C	4
F	D	6
G	E, F	4

(a) Draw the activity-on-node (AON) project network based on the table above. Only nodes and directed arrows are required in the network for full credit. (10 points)

(b) List all the paths in the network and calculate the completion time of each path for full credit. (10 points)

(c) What is the project completion time? Please give the reason for full credit. (4 points)

3. The following represents a project that should be scheduled using PERT.

Activity	Immediate Predecessor(s)	Times (Days)
		a	m	b
A	None	1	3	5
B	None	1	2	3
C	A	1	2	3
D	A	2	3	4
E	B	3	4	11
F	C, D	3	4	5
G	D, E	1	4	6
H	F, G	2	4	5

(a) Draw the AON project network. Only nodes and directed arrows are required in the network for full credit. (10 points)

(b) Calculate the expected activity time for each activity. (16 points)

(c) Calculate the variance of the activity time for each activity. (16 points)

(d) List all paths and calculate their expected completion time. (24 points)

(e) What is the critical path? (4 points)

(f) What is the expected project completion time? Please give the reason. (4 points)

(g) What is the variance of the project completion time? Please provide at least one step of calculation and the correct answer for full credit. (4 points)

(h) What is the probability of completing this project within 16 days? Please provide the formula for calculating the z value, at least one step of calculation, and the correct probability for full credit. (6 points)

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