Problem 1 A manufacturer of ballet shoes has determined that its production facility has a design capacity of 300 shoes per week. The effective capacity, however, is 230 shoes per week. What is the manufacturer's capacity utilization relative to both design and effective capacity if output is 200 shoes per week? Problem 2 The staff training center at a large regional hospital provides graining sessions in CPR to all employees. Assume the capacity of this training system was designed to be 1,800 employees per year. Since the training center was first put in use, the program has become more complex, so that 1,400, now, represents the most employees that can be trained per year. In the past year, 1,350 employees were trained. Calculate the efficiency and utilization of the system. Problem 3 Company AtoZ Inc. produces e-bikes. A rental cost of a factory is 8,000 a month and the cost of heat and light there is 6,000 a month. The selling price per e-bike is 2,000. The cost of materials per e-bike is 400. How many e-bikes per month does the company have to produce and sell to reach the break-even level of output? Note: is the symbol for pounds (Great Britain money). Problem 4: Make-or-Buy decision C&A can either make a part in house or buy it from a supplier. C&A needs 70,000 of this part each year. Consider the following cost data: Source Fixed cost Make Buy 1- 10,125 a- b- Unit variable cost Practice on Goal Setting Goal 1 (stated here in a vague wording): I want to become a very good student. REQUIRED: Develop it in a SMART Goal (re-write it as SMART Goal and indicate what each of S-M-A-R-T will entertain for your goal) C- d- 12.50 Goal 2 (stated here in a vague wording): I want to get better health. REQUIRED: Develop it in a SMART Goal (re-write it as SMART Goal and indicate what each of S-M-A-R-T will entertain for your goal) Practice on forecast 0 14.75 1. Should C&A make or buy the part? 2. At what quantity will C&A be indifferent towards making or buying the part? Given the following data: prepare a forecast using each of these approaches: The nave approach A 3-period moving average A weighted average using weights of 0.5, 0.3 and 0.2. Exponential smoothing with a smoothing constant of 0.4. Period 2 3 4 5 Number of complaints 55 58 64 60 65 2. Three-month moving average and Exponential Smoothing Given the following data, calculate forecasts for months 4, 5, 6, and 7 using a three-month moving average and an exponential smoothing forecast with an alpha of 0.3. Assume a forecast of 61 for month 3. Month 2 4957WN 3 6 7 Actual Sales 56 76 58 67 75 76 Forecast 3-Month Moving Average Forecast Exponential Smoothing 3. Forecasting examples: moving average and exponential smoothing The demand for a product in each of the last five months is shown below. 1 2 3 4 5 Month Demand ('00s) 13 17 19 23 24 a) Use a two month moving average to generate a forecast for demand in month 6. b) Apply exponential smoothing with a smoothing constant of 0.9 to generate a forecast for demand for demand in month 6.