In the ERP lesson, we have computed the cash-to-cash cycle time (CCT) for Dell Computers in 2003 for -91.36 days, which is an indication for Dell to have efficient and effective operational cycles.

1)Search HPs (www.HP.com) and Apples (www.apple.com/about/) websites and from their investor information sites to obtain the annual financial statements for the recent past five years (2011-2015). Compute the CCTs for these five years. Use 365 days for a year.

2)Compute the average CCT for each company. Which company has a better average CCT?

3)Is there any trend for the CCT for each company? If yes, which one has a better trend, i.e., slope?

For the Lawn Kings case, suppose we have seen the three year sales data as shown in the file Lawn Kings three year sales.xlsx. Assume that the three year sales are realized as presented.

Use Excel to draw the chart for the three year sales time series data. Describe what components you observe from this time series data. (2 points)

Based on the sales pattern you describe in 1), assume that you choose the de-seasonalized linear regression (i.e., decomposition using least square regression) to perform forecast for the fourth year sales; i.e., use these three year sales data to perform the following: (10 points)

Compute the seasonal indices (multiplicative factors)

Use these indices to compute the de-seasonalized sales

Use the de-seasonalized sales to perform linear regression

Use the y-intercept and slop to forecast the fourth year sales (t=37 to 48). What are the y-intercept and slop? Show the forecast result.

Adjust the fourth year sales forecast by seasonal indices (rounded to integer numbers.) Show the forecast result in graph and in table.

Compute and plot the MADs and tracking signals (TS) for the above forecasts, what are the MAD and TS at the end of year 3? (2 points)

Following problem 2, assume that the production plans for years 1, 2 and 3 have been performed. Based on the sales forecast for year 4 from above, do the following for year 4. Also assume all cost data remain the same and hold the following conditions for year 4. Present your production plan using the following table.

Beginning September Workforce = 80

Beginning Inventory = 16,000

End monthly minimum inventory = 2000.

August Ending Inventory = 17,000

August Ending Workforce = 90

Create a production plan based on pure chase strategy. (5 points)

Create a production plan based on level strategy with minimal overtime. (5 points)

Run Solver to get the optimal production plan. (5 points)

Compare costs for all three options. (3 points)

Strategy	Hiring cost	Firing cost	Regular time cost	Overtime cost	Inventory cost	Total cost

Below is the MPS for the weeks in September and October. Answer the following questions. Assume the ending inventory in August is 120.

Month	September				October
Week	36	37	38	39	40	41	42	43
Forecast	150	150	150	150	125	125	125	125
Booked Orders	160	170	180	140	110	90	75	35
Projected Inventory=120
Master Production Schedule	400		400		400		400
Available-to-Promise

What are the projected inventories (projected on-hands) at the end of weeks 36, 37, 38, and 39? (2 points)

Month	September				October
Week	36	37	38	39	40	41	42	43
Forecast	150	150	150	150	125	125	125	125
Booked Orders	160	170	180	140	110	90	75	35
Projected Inventory 120
Master Production Schedule	400		400		400		400
Available-to-Promise

What are the ATPs (available-to-promise) at the end of weeks 36, 38, 40, and 42? Assume the discrete approach is used. From the resulting ATPs, if a customer requires 250 units, which week can you promise to deliver this quantity (i.e., enough to ship in one time)? (4 points)

Month	September				October
Week	36	37	38	39	40	41	42	43
Forecast	150	150	150	150	125	125	125	125
Booked Orders	160	170	180	140	110	90	75	35
Projected Inventory 120
Master Production Schedule	400		400		400		400
Available-to-Promise

What are the ATPs (available-to-promise) at the end of weeks 36, 38, 40, and 42? Assume the cumulative logic is used. From the resulting ATPs, if a customer requires 450 units, which week can you promise to deliver at the earliest (i.e., enough to ship in one time)? (4 points)

Month	September				October
Week	36	37	38	39	40	41	42	43
Forecast	150	150	150	150	125	125	125	125
Booked Orders	160	170	180	140	110	90	75	35
Projected Inventory 120
Master Production Schedule	400		400		400		400
Available-to-Promise

In the case for Turbo Charge Engines, Inc., assume the MPS has been revised to the following table.

Weeks	1	2	3	4	5	6	7	8	9	10	11	12
MPS Production Qty	180	150	170	100		150	200	175		200	180	220

Perform the MRP explosion for these three items: 721-20, 721-20-01, and 721-20-02. Assuming all other information remains the same.(12 points)

From 1), is there any action imminent in week 1, i.e. planned order releases in week 1 or earlier? (2 points)

From 1), based on the above MRP explosion, what are the project on-hand at the end of week 12 for these three items: 721-20, 721-20-01, and 721-20-02? (2 points)

The Klone Computer Company is trying to decide which of the several lot-sizing procedures to use for its MRP system. The following information pertains to the typical component parts of its computers:

Setup cost = $150/order

Inventory carrying cost (charged at the end of week) = $2.50/week

Current inventory on hand = 0

The demands or requirements for the next 12 weeks are shown as below:

	Week
	1	2	3	4	5	6	7	8	9	10	11	12
Demands	60	50	39	17	150	36	90	25	15	25	85	30

Apply L4L for the above production requirements. (4 points)

Apply EOQ (only integer multiples of the EOQ can be ordered, only one setup cost is charged even order multiple EOQs) for the above production requirements. (4 points)

Apply POQ (use the rounded up order interval, i.e., time between order, from EOQ) for the above production requirements. (4 points)

Apply PPB (Part Period Balancing) for the above production requirements. (4 points)

Compute and compare the costs resulting from these four procedures. Assume orders will be received at the beginning of the week and the inventory holding cost is incurred at the end of the week. (4 points)

Inventory carrying cost
Setup cost
Total cost

After reading the first 12 chapters of the book The Goal: A process of on-going improvement by Goldratt and Cox, answer the following questions. (2 points each)

What is the situation the plant manager, Mr. Rogo, faces?

If NXC-10 (robotic machine) has produced 36% more parts but not used for on-time assembly, what does it imply to the goal and inventory?

Define dependent events and statistical fluctuations in manufacturing plants.

Name the following persons associated with Mr. Rogos plant:

Uniware division head:

Plant controller:

Inventory control:

Production manager: