MGMT 3306 Test 2 Fall 2015 Answer all 5 Questions. 1. Define TQM, Lean, and JIT. How does Lean operations and JIT also helps in improving process quality? 2. The sales data for Victoria Gifts is given: Period At 1 149 2 134 3 131 4 147 5 163 6 109 7 189 8 191 9 162 a. Using weights of 0.2, 0.3, and 0.5, forecast the demand for period 4 through 10. b. With Alpha = 0.1, and initial forecast of 149, forecast through period 10 using simple exponential smoothing. 3. Demand for a newly introduced toy is as following: Period At 1 2 3 4 5 6 7 8 9 10 11 12 557 546 566 562 582 566 565 579 589 608 580 603 Using trend projection (simple regression), forecast for period 13 through 15. Using the trend projection equation, forecast for period 1 through 12, and calculate MAD. Based on your analysis of MAD, what conclusion would you draw for forecasts 13 through 15? 4. Based on the following information, calculate CL, UCL, and LCL for a p-bar chart using 3 sigma control. Plot your control chart, and based on the control chart, suggest what action needs to be taken? n = Sample Sample Size Defectives 1 2 3 4 5 6 7 8 9 10 11 12 13 14 200 200 200 200 200 200 200 200 200 200 200 200 200 200 96 120 108 144 96 108 144 108 132 120 84 132 96 96 15 200 Number of 72 5. Northcutt Bikes purchases two types of wheels for their roadracing bikes: a regular version and a deluxe version. The table below has demand information for the past year for each style of wheel, as well as combined figures. Month January February March April Regular Deluxe wheels Wheels 208 481 153 316 238 553 296 648 Combine d Demand 689 469 791 944 May 292 228 June 322 527 July 102 605 August 211 510 September 286 538 October 163 590 November 186 657 December 129 582 Std. Dev., Monthly demand 72.1 122.8 Other important information: Yearly holding cost is 20% of item cost ordering cost: $200 per order service level 95% leadtime .5 months item costs $40 deluxe wheels each $35 regular wheels each 520 849 707 721 824 753 843 711 129.2 a. Calculate the EOQ for each wheel type. b. Calculate the ROP for each wheel type. c. For each wheel type, calculate the total yearly holding and ordering cost, as well as total item cost. MGMT 3306 Test 2 Fall 2015 Answer all 5 Questions. 1. Define TQM, Lean, and JIT. How does Lean operations and JIT also helps in improving process quality? 2. The sales data for Victoria Gifts is given: Period At 1 149 2 134 3 131 4 147 5 163 6 109 7 189 8 191 9 162 a. Using weights of 0.2, 0.3, and 0.5, forecast the demand for period 4 through 10. b. With Alpha = 0.1, and initial forecast of 149, forecast through period 10 using simple exponential smoothing. 3. Demand for a newly introduced toy is as following: Period At 1 2 3 4 5 6 7 8 9 10 11 12 557 546 566 562 582 566 565 579 589 608 580 603 Using trend projection (simple regression), forecast for period 13 through 15. Using the trend projection equation, forecast for period 1 through 12, and calculate MAD. Based on your analysis of MAD, what conclusion would you draw for forecasts 13 through 15? 4. Based on the following information, calculate CL, UCL, and LCL for a p-bar chart using 3 sigma control. Plot your control chart, and based on the control chart, suggest what action needs to be taken? n = Sample Sample Size Defectives 1 2 3 4 5 6 7 8 9 10 11 12 13 14 200 200 200 200 200 200 200 200 200 200 200 200 200 200 96 120 108 144 96 108 144 108 132 120 84 132 96 96 15 200 Number of 72 5. Northcutt Bikes purchases two types of wheels for their roadracing bikes: a regular version and a deluxe version. The table below has demand information for the past year for each style of wheel, as well as combined figures. Month January February March April Regular Deluxe wheels Wheels 208 481 153 316 238 553 296 648 Combine d Demand 689 469 791 944 May 292 228 June 322 527 July 102 605 August 211 510 September 286 538 October 163 590 November 186 657 December 129 582 Std. Dev., Monthly demand 72.1 122.8 Other important information: Yearly holding cost is 20% of item cost ordering cost: $200 per order service level 95% leadtime .5 months item costs $40 deluxe wheels each $35 regular wheels each 520 849 707 721 824 753 843 711 129.2 a. Calculate the EOQ for each wheel type. b. Calculate the ROP for each wheel type. c. For each wheel type, calculate the total yearly holding and ordering cost, as well as total item cost