# MG523: Introduction to Operation Management Assignment: 1 Problem 1 (10 marks) Lilian fok is…

MG523: Introduction to Operation Management Assignment: 1 Problem 1 (10 marks) Lilian fok is…

MG523: Introduction to Operation Management

Assignment: 1

Problem 1 (10 marks)

Lilian fok is president of lakefront Manufacturing, a producer of bicycle tires. Fok makes 1000 tires per day with the following resources.

 Labour 400 hours per day @\$12.50 per hour Raw material 20,000 pounds per day@\$1 per pound Energy \$ 5,000 per day Capital costs \$ 10,000 per day
1. What is the labour productivity per labour hour for these tires at lakefront manufacturing?

2. What is the multifactor productivity for these tires at lakefront manufacturing?

3. What is the percent change in multifactor productivity with cutting production or change any other inputs?

Problem 2 (5 marks)

Lake Charles seafood make 500 wooden packing boxes for fresh seafood per day, working in two 10 hour shifts. Due to increased demand, plant manager has decided to operate three 8-hour shifts instead. The plant is now able to produce 650 boxes per day.

1. Calculate the company’s productivity before the change in work rules and after the change.

2. What is the percentage increase in productivity?

3. If production increased to 700 boxes per day, what is the new productivity?

Problem 3 (5 marks)

The following gives the number of pints of type B blood used at Woodlawn Hospital in the past 6 weeks.

 August 31 360 September 7 389 September 14 410 September 21 381 September 28 368 October 5 374
1. Forecast the demand for the week of October 12 using a 3-week moving average

2. Compute the forecast for the week of October 12 using exponential smoothing with a forecast for 31 of 360 and a=.2

Problem 4 (10 marks)

Data collected on the yearly registration for a six sigma seminar at the college are shown in the following.

 Year 1 2 3 4 5 6 7 8 9 10 11 Registration 4 6 4 5 10 8 7 9 12 14 15

1. Use exponential smoothing with a smoothing constant of 0.3 and 0.1 to forecast the registrations at the seminar. To begin the procedure, assume that the forecast for year 1 was 5,000 people signing up.