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a. The following table contains figures on the monthly volume and unit costs for a random sample of 16 items from a list of 2,000 inventory items at a health care facility. Develop an A-B-C clas- sification for these items. Item Unit Cost Usage Item Unit Cost Usage K34 $10 200 F99 20 60 K35 25 600 D45 10 550 K36 36 150 D48 12 90 M10 16 25 D52 15 110 M20 20 80 D57 40 120 245 80 200 NOS 30 40 F14 20 300 POS 16 500 F95 30 800 P09 10 30 b. Given the monthly usages in the following table classify the items in A, B, and categories according to dollar usage. Item Unit Cost 4021 90 $1,400 9402 300 12 4066 30 700 6500 150 20 9280 10 1,020 4050 80 140 6850 2.000 10 3010 400 20 4400 5.000 5 c. Determine the percentage of items in each category and the annual dollar value for each cat- egory for part b. Usage 12 33 The time needed for checking in at a hotel is to be investigated. Historically, the process has had a standard deviation equal to .146. The means of 39 samples of x= 14 are Sample Mean Sample Mean Sample Mean Sample Mean 1 3.86 11 3.88 21 3.84 31 3.88 2 3.90 3.86 22 3.82 32 3.76 3 3.83 13 3.88 23 3.89 3.83 4 3.81 14 3.81 24 3.86 34 3.77 5 3.84 3.83 3.88 35 3.86 6 3.83 16 3.86 3.90 36 3.80 7 3.87 17 3.82 27 3.81 37 3.84 8 3.88 18 3.86 28 3.86 38 3.79 9 3.84 19 3.84 29 3.98 39 3.85 10 3.80 20 3.87 30 3.96 15 26 a. Construct an ichart for this process with three-sigma limits. Is the process in control? b. Analyze the data using a median run test and an up/down run test. What can you conclude? 7. Three recent college graduates have formed a partnership and have opened an advertising firm. Their first project consists of activities listed in the following table. a. Draw the precedence diagram. b. What is the probability that the project can be completed in 24 days or less? In 21 days or less? c. Suppose it is now the end of the seventh day and that activities A and B have been completed while activity Dis 50 percent completed. Time estimates for the completion of activity Dare 5. 6, and 7. Activities Cand Hare ready to begin. Determine the probability of finishing the project by day 24 and the probability of finishing by day 21. TIME IN DAYS Immediate Activity Predecessor Optimistic Most Likely Pessimistic 5 6 7 B 8 11 8 11 D E F G H 1 6 9 5 5 2 4 5 8 12 6 6 3 4 7 15 9 7 7 5 8 End H E, G1 d. The partners have decided that shortening the project by two days would be beneficial, as long as it doesn't cost more than about $20,000. They have estimated the daily crashing costs for each activity in thousands, as shown in the following table. Which activities should be crashed, and what further analysis would they probably want to do? Activity First Crash Second Crash $8 $10 D E F G H 10 9 7 8 7 11 10 9 9 8 8 36 42 A pharmacist has been monitoring sales of a certain over-the-counter pain reliever. Daily sales dur- ing the last 15 days were as follows: Day 1 2 3 3 4 5 6 7 8 9 Number sold 38 44 48 50 49 52 Day 10 11 12 13 Number sold 48 52 55 54 56 a. Which method would you suggest using to predict future salesa linear trend equation or trend-adjusted exponential smoothing? Why? b. If you learn that on some days the store ran out of the specific pain reliever, would that knowl- edge cause you any concern? Explain. 14 49 15 57