BUS FPX 4014 Assessment 5 Inventory and Ordering Decisions
Phillip March 6, 2024 No Comments

BUS FPX 4014 Assessment 5 Inventory and Ordering Decisions

BUS FPX 4014 Assessment 5 Inventory and Ordering Decisions

Name

Capella university

BUS-FPX4014 Operations Management for Competitive Advantage

Prof. Name

Date

Question #1

Calculate and provide the numeric monthly aggregate production rate rounded to a whole number. Level Production rate is total units per period. APR Equation: (D1 + D2 + D3 + D4 + D5 + D6 – SI + EI) / M. Six-Month Demand = 1,535. Period 1 = 240, Period 2 = 225, Period 3 = 265, Period 4 = 270, Period 5 = 260, Period 6 = 275. Net Requirement = 1,535 + 50 – 150 = 1,435. Monthly APR = (240 + 225 + 265 + 270 + 260 + 275 – 150 + 50) / 6 = 239 (rounded).

Question #2

What is the equation for the number of workers needed to meet the aggregate production rate? 168 / 3.5 = 48 units per month per worker. 48 / 31 = 1.6 units a day per worker. 231 / 31 = 7.45 units a day. 7.45 / 1.6 = 4.66 daily workers. 4.66 x 31 = 145 workers needed to produce 231 units in one month.

Question #3

Provide the algebraic equation for the economic order quantity rounded to the closest whole number. EOQ = (2 x OC x AQ/UHC). (2 x 10 x 5400/2) = 54,000. Square root of 54,000 = 232.

Question #4

Provide the algebraic equation for the reorder point. RP = DQ x LT. RP = 22 x 5. RP = 110.

Question #5

Describe the below forecasting methods and the math associated with each method, along with the pros and cons of using it.

  • Naïve

    • Estimating technique used as a comparison without adjusting.
    • Pro = Easy, quick, benchmarking.
    • Con = Accuracy, cannot forecast turning points.

  • Simple Mean
    • An average of all available data.
    • Pro = Easy to calculate, easy to use for patterns.
    • Con = No actual value, as only average(s) provided.

  • Simple Moving Average
    • Takes recent actual values and then averages them.
    • Pro = Easy to calculate and understand.
    • Con = All values are calculated equally.

  • Weighted Moving Average
    • Recent values are given more weight in calculating the forecast.
    • Pro = Reflective upon updated data.
    • Con = Complex calculations required.

BUS FPX 4014 Assessment 5 Inventory and Ordering Decisions

  • Exponential Smoothing
    • Recent data with more weight.
    • Pro = More weight within updated data.
    • Con = Data includes potentially unnecessary data impacting total forecast.

  • Linear Trend Line
    • Straight line through a set of data through time series.
    • Pro = Multiple statistics can be added.
    • Con = Too much data with one independent variable.

BUS FPX 4014 Assessment 5 Inventory and Ordering Decisions