MGMT 3306 Test 2 Fall 2015 Answer all 5 Questions. 1. Define TQM, Lean, and JIT. How does Lean operations and JIT also helps in improving process quality? 2. The sales data for Victoria Gifts is given: Period At 1 149 2 134 3 131 4 147 5 163 6 109 7 189 8 191 9 162 a. Using weights of 0.2, 0.3, and 0.5, forecast the demand for period 4 through 10. b. With Alpha = 0.1, and initial forecast of 149, forecast through period 10 using simple exponential smoothing. 3. Demand for a newly introduced toy is as following: Period 1 2 3 4 5 6 7 8 9 10 11 12 At 557 546 566 562 582 566 565 579 589 608 580 603 Using trend projection (simple regression), forecast for period 13 through 15. Using the trend projection equation, forecast for period 1 through 12, and calculate MAD. Based on your analysis of MAD, what conclusion would you draw for forecasts 13 through 15? 4. Based on the following information, calculate CL, UCL, and LCL for a p-bar chart using 3 sigma control. Plot your control chart, and based on the control chart, suggest what action needs to be taken? Sample n = Sample Size Number of Defectives 1 2 3 4 5 6 7 8 9 10 11 12 13 14 200 200 200 200 200 200 200 200 200 200 200 200 200 200 96 120 108 144 96 108 144 108 132 120 84 132 96 96 15 200 72 5. Northcutt Bikes purchases two types of wheels for their roadracing bikes: a regular version and a deluxe version. The table below has demand information for the past year for each style of wheel, as well as combined figures. Month January February March April May June July August September October REGULAR Wheels 208 153 238 296 292 322 102 211 286 163 DELUXE Wheels 481 316 553 648 228 527 605 510 538 590 Combined Demand 689 469 791 944 520 849 707 721 824 753 1849.884 1361.158 2122.129 2638.237 2599.175 2866.567 908.2062 1882.909 2547.511 1456.65 1070.467 703.2119 1230.538 1441.763 507.9288 1173.325 1344.477 1133.85 1195.676 November December 186 129 657 582 Std. Dev., Monthly Demand 72.1 122.8 843 711 1654.898 1154.784 129.2 Other important information: Yearly holding cost Ordering cost Service level Leadtime Item costs Deluxe Wheels Regular Wheels 20% of item cost $200 per order 95% 0.5 months $40 each $35 each a. Calculate the EOQ for each wheel type. b. Calculate the ROP for each wheel type. c. For each wheel type, calculate the total yearly holding and ordering cost, as well as total item cost. 1462.026 1295.332