Problem 1 The table below shows the last 28 months sales volumes of Company A. Make forecasts for the next SIX months. It is up to the student to pick whatever forecast method fits the case. a. List the forecasts for the next six months. b. What approach is used to create the forecast? Why do you think this approach is the best choice (be specific)? Table 1- Sales of Product X in the Last 28 Months Month Sales of product X

1 Apr-17 160

2 May-17 150

3 Jun-17 156

4 Jul-17 190

5 Aug-17 260

6 Sep-17 272

7 Oct-17 80

8 Nov-17 164

9 Dec-17 154

10 Jan-18 160

11 Feb-18 188

12 Mar-18 250

13 Apr-18 270

14 May-18 84

15 Jun-18 168

16 Jul-18 154

17 Aug-18 166

18 Sep-18 192

19 Oct-18 270

20 Nov-18 280

21 Dec-18 74

22 Jan-19 174

23 Feb-19 164

24 Mar-19 196

25 Apr-19 206

26 May-19 288

27 Jun-19 288

28 Jul-19 96

Problem 2 (Continued from Problem 1) Company A wants to build a new facility to cover the forecast demand of Product X in problem 1. Product X has variable cost = $150 per unit and revenue = $300 per unit. Based on the forecasting result in Problem 1, find the Fix Cost Value that will result in breakeven of the monthly forecasts (there should be six of them). Show your work for credit. Fixed Cost that Will Result Break Even Points Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20

Problem 3 (Continued from Problem 2) If the company can outsource the product for the cost of $250 per unit (with the max outsource capacity of 80 units). What would be the optimized capacity plan (hence, students need to make ONE recommendation from the six options of Problem 2)? Show the analysis to justify your recommendation (explain why your recommendation is the best option).

Problem 4 (Continued from Problem 3) The tasks of making each unit of Product X are shown in the following table: Task Predecessors Time (Minutes) A 2.00 B A 1.00 C A ? D B, C 1.20 E D 1.60 F E 1.50 G E 1.40 H F, G 1.70 The above time required of each task is from stopwatch time study. The following is the time study table for Task C. Time Unit: Minute Element 1 Element 2 Element 3 Cycle OT Rating OT Rating OT Rating 1 0.45 90% 0.16 90% 0.56 85% 2 0.54 90% 0.25 90% 0.45 90% 3 0.58 85% 0.35 85% 0.50 85% 4 0.64 90% 0.45 90% 0.42 90% 5 0.68 80% 0.63 70% 6 7 8 a. Calculate Task C standard time. b. Use the capacity from Problem 3 as the DAILY demand, group the task to stations. Assume the facility operates 8 hours per day. c. Calculate the efficiency of the process.