A gourmet pizzeria delivered the following quantities (pizzas) over the past 12 months in 2018: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 3,300 3,500 3,450 3,600 3,700 3,750 3,700 3,750 3,950 3,950 4,100 4,250 The average monthly operating cost, including delivery, can be categorized as follows: a. Direct Labor = $14,500 b. Material = $4,000 c. Overhead = $5,500 In the past three 3 months (October through December), the pizzeria collected information regarding customer complaints or returns. In all, 738 pizzas were remade and/or delivered free of charge for the following reasons: Reason # of pizzas Wrong order delivered 82 Pizza was cold 55 Cheap on toppings 90 Wrong crust 122 Undercooked 40 Burnt crust 65 Delivery time too long 182 Other 102 The pizzeria process flow layout with (maximum capacity of pizzas per hour) is as follows: 1. What is the overall productivity per $1 input? 2. Plot the monthly sales data and forecast the data set including January 2019 demand using the following methods: a. Nave method b. Three-month moving average with 50% of weight for latest month and 25% for each of the other c. Exponential smoothing forecast using alpha = 0.4 d. Linear trend equation Which method would you pick based on mean square error (MSE)? 3. Use Pareto analysis to prioritize issues (complaints) so that you can tackle the vital few? What issue(s) would you tackle first? 4. Based on the process layout, what is the capacity of the pizzeria? 5. If the capacity of one operation could be increased in order to increase throughput, which operation would you target and by how much? Why? 6. If the pizzeria had re-arranged the layout and improved the process flow using lean methods allowing it to cut the direct labor cost by 5%. Also, and based on initial numbers, complaints related to delivery taking long is expected to decrease by 50%. What would be the resulting overall productivity per $1 input? 7. Give two recommendations for the pizzeria to improve productivity and profitability? What tools would you use to accomplish these recommendations? Rubric: Spreadsheet with all calculations 40 Points Power Point 20 Points (presenting solutions, graphs, explanation, and recommendations)