BBRADLEY University Department of Industrial & Manufacturing Engineering & Technology IME 483/583 Production Planning & Control,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
BBRADLEY University Department of Industrial & Manufacturing Engineering & Technology IME 483/583 Production Planning & Control, Fall 2017 Project 1 Due: October 26, 2017 (Any late assignments will not be accepted.) (80 points) World Oil is a worldwide refiner and distributor of fuel products for automobiles, aircraft, truck, and marine operations. Outlets are in the form of service stations and bulk facilities, Keeping more than 1,000 such outlets supplied is a significant operating problem for the company. Maintaining adequate fuel levels at the auto service stations is its major concern because fuel generates the most revenue for the firm and has the greatest demand for customer service (product availability). Being able to forecast usage rates by product at these service stations is one of the key elements of good distribution operations. In particular, the tanker truck dispatchers need an accurate forecast of fuel usage in order to schedule fuel deliveries at service stations to avoid stockouts. Service Station Operation Service stations may carry these or four different grades of fuel including 87, 89, and 92 octane, and diesel fuels. These are stored in underground storage tanks. Due to the variations in the usage rates among the stations and the limited capacities of these tanks, the frequency of resupply may range from two or three times per day to only several times per week. Each tank is dedicated to one type of fuel. Fuel levels are measured periodically by placing a calibrated stick into a storage tank, although some of the more modern stations have electronic metering devices on their tanks. Tanker trucks, typically having four fuel compartments, are used for resupply. A Forecasting Situation Each service station's fuel grade represents a specific forecasting situation. A case in point is one of the lower-volume stations that sells 87 octane fuel. With resupply occurring only a few times per week, forecast of usage rates on a daily basis is adequate. Because usage does depend on the day of the week, forecasting for a particular day of the week may be quite different form any other day of the week. In the table given below, a history of Monday 87 octane fuel usage rates for the last 2+ years is given for one low-volume station. Questions 1. Plot the given data set. Develop a forecasting procedure for this service station. Why did you select your method? 2. How should the periods of promotions, holidays, or other periods be handled in the forecast where fuel usage rates deviate from normal patterns? 3. Forecast next Monday's usage and indicate the probable accuracy of the forecast. Week Usage (Gal.) Two Years ago. 530 570 560 530 510 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1 2 3 41 42 43 560 610 560 580 610 650 700 760 730 760 730 760 820 780 900 840 770 820 800 760 760 770 790 760 740 720 670 690 470* 670 690 620 650 610 620 Usage (Gal.) Last Years Usage (Gal.) This Year 640 590 610 2 660 640 810** 790** 820** 650 ? 710 700 670 690 730 730 760 790 810 870 890 870 890 880 930 980 900 860 890 880 870 840 860 910 870 860 840 540** 780 750 780 760 710 730 750 750 710 790 860 890 780 810 44 45 46 47 48 49 50 51 52 • Holiday. ** Promotional period. 600 630 600 630 640 610 590 610 630 750 720 770 740 750 760 780 800 850 BBRADLEY University Department of Industrial & Manufacturing Engineering & Technology IME 483/583 Production Planning & Control, Fall 2017 Project 1 Due: October 26, 2017 (Any late assignments will not be accepted.) (80 points) World Oil is a worldwide refiner and distributor of fuel products for automobiles, aircraft, truck, and marine operations. Outlets are in the form of service stations and bulk facilities, Keeping more than 1,000 such outlets supplied is a significant operating problem for the company. Maintaining adequate fuel levels at the auto service stations is its major concern because fuel generates the most revenue for the firm and has the greatest demand for customer service (product availability). Being able to forecast usage rates by product at these service stations is one of the key elements of good distribution operations. In particular, the tanker truck dispatchers need an accurate forecast of fuel usage in order to schedule fuel deliveries at service stations to avoid stockouts. Service Station Operation Service stations may carry these or four different grades of fuel including 87, 89, and 92 octane, and diesel fuels. These are stored in underground storage tanks. Due to the variations in the usage rates among the stations and the limited capacities of these tanks, the frequency of resupply may range from two or three times per day to only several times per week. Each tank is dedicated to one type of fuel. Fuel levels are measured periodically by placing a calibrated stick into a storage tank, although some of the more modern stations have electronic metering devices on their tanks. Tanker trucks, typically having four fuel compartments, are used for resupply. A Forecasting Situation Each service station's fuel grade represents a specific forecasting situation. A case in point is one of the lower-volume stations that sells 87 octane fuel. With resupply occurring only a few times per week, forecast of usage rates on a daily basis is adequate. Because usage does depend on the day of the week, forecasting for a particular day of the week may be quite different form any other day of the week. In the table given below, a history of Monday 87 octane fuel usage rates for the last 2+ years is given for one low-volume station. Questions 1. Plot the given data set. Develop a forecasting procedure for this service station. Why did you select your method? 2. How should the periods of promotions, holidays, or other periods be handled in the forecast where fuel usage rates deviate from normal patterns? 3. Forecast next Monday's usage and indicate the probable accuracy of the forecast. Week Usage (Gal.) Two Years ago. 530 570 560 530 510 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1 2 3 41 42 43 560 610 560 580 610 650 700 760 730 760 730 760 820 780 900 840 770 820 800 760 760 770 790 760 740 720 670 690 470* 670 690 620 650 610 620 Usage (Gal.) Last Years Usage (Gal.) This Year 640 590 610 2 660 640 810** 790** 820** 650 ? 710 700 670 690 730 730 760 790 810 870 890 870 890 880 930 980 900 860 890 880 870 840 860 910 870 860 840 540** 780 750 780 760 710 730 750 750 710 790 860 890 780 810 44 45 46 47 48 49 50 51 52 • Holiday. ** Promotional period. 600 630 600 630 640 610 590 610 630 750 720 770 740 750 760 780 800 850
Expert Answer:
Answer rating: 100% (QA)
Solution Introduction When there is a merge or certain process of joint collaboration two factors come into the consideration They are strategy and the resources and they can be identified as the many ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Read the case study and answer the question below with a one page response. What does a SWOT analysis reveal about the overall attractiveness of Under Armours situation? Founded in 1996 by former...
-
Analiza can paint a room in 3 hours. Leoben can do it for 2 hours. Walter can do the painting job in 5 hours. If all them worked together, how long will it take them to paint the room?
-
Conduct research to describe two major financial frauds that were discovered in the first quarter of 2009. What database and subdatabase did you use?
-
A delivery of 25 parts is subject to a quality control according to the following scheme: A sample of size 5 is drawn (without replacement of drawn parts). If at least one part is faulty, then the...
-
A concern borrows \($50,000\) at an annual effective compound interest rate of 10%. The concern wishes to pay off the debt in 5 yr by making equal payments at the end of each year. How much will each...
-
The sodium content of thirty 300-gram boxes of organic corn flakes was determined. The data (in milligrams) are as follows: 131.15, 130.69, 130.91, 129.54, 129.64, 128.77, 130.72, 128.33, 128.24,...
-
a) Direct labor is 50% of total prime cost. If direct material cost is 40,000 how much is direct labor cost? b) Direct labor cost is 40% of total prime cost. If total prime cost is 100,000 how much...
-
One way to see whether this procedure will be successful is to split the original data set into two subsets: one subset for estimation and one subset for validation. A regression equation is...
-
Consider the S&P/ASX 200 option contracts that expire on 17th September 2020, with a strike price of 6050. On 24th July 2020, the S&P/ASX 200 index was priced at 6019.8. The annual standard...
-
In Mr. Martin's science class, brine shrimp are hatching in a container of 0.255 liters of saltwater. How many milliliters of salt water are in the container? (1 liter= 1000 militers) A) 000255 B)...
-
Find the correct output: stack.push(100); stack.push(200); stack.push(500); stack.pop(); stack.push(500); stack.peek(); stack.push(300); stack.printStack();
-
If an LLC is doing business in a state other than the state it was formed in , what is it called?
-
What is one key advantage of linking business rule assumptions to a financial model in Excel? it reduces the need for annual growth rate assumptions. It allows for easy updating of assumptions in the...
-
Another way of being a great listener is: Interrupting someone when they've spoken for too long Nodding, even when you're not actively listening Watching the lips of the speaker Reading the speaker's...
-
Of the following employee benefits paid by his employer, which one is partially taxable to Mike? a. $6,000 in employer-provided meals furnished in kind for the employer's convenience b. $1,000...
-
You are standing at x = 9.0 km and your assistant is standing at x = 3.0 km. Lightning bolt 1 strikes at x = 0 km and lightning bolt 2 strikes at x = 12.0 km. You see the flash from bolt 2 at t = 10...
-
Rework Problem 12.18, assuming the following additional information: The current book value of the old machine is $4,000, and the annual depreciation charge is $800 if the firm decides to keep the...
-
What is the effective interest rate per quarter if the interest rate is 6% compounded continuously?
-
Suppose that, to cover some of your college expenses, you are obtaining a personal loan from your uncle in the amount of $25,000 (now) to be repaid in two years. If your uncle could earn 8% interest...
-
(a) During a certain day the outdoor temperature ranges between \(60^{\circ} \mathrm{F}\) and \(80^{\circ} \mathrm{F}\). What is the corresponding range in degrees Celsius and in kelvins? (b) The...
-
Which is greater in each pair: (a) the thermal energy of a pool of water or that of a glass of water at the same temperature, (b) the heat capacity of a pool of water or that of a glass of water at...
-
Which of the following systems undergo a quasistatic process? (a) A gas-containing balloon is popped inside a vacuum container. System: container, gas, and balloon. (b) A cup of coffee cools down....
Study smarter with the SolutionInn App