PROJECT MANAGEMENT & CONTROL A consulting firm is working on a project and has sorted out the required activities as well as activities order as follows: ACTIVITY A B C D E F G H TIME WKS 3 4 2 6 7 4 4 2 IMMEDIATE PRED A A, B C, D D E, F F, G The network has been drawn as illustrated below. C A E G Start D Finis H B F USE THE COMPUTATION TABLE BELOW TO IDENTIFY (a) SCHEDULED TIMES, (2) CRITICAL ACTIVITIES, and (C) Non-CRITICAL ACTIVITIES AND THEIR SLACK TIMES. Computational Table SLACK ACTIVIT Y A [3] B [4] C [2] D [6] E [7] F [4] G [4] H [2] ES EF LS LF LS - ES 0 0 2 2 4 4 0 0 2 2 4 4 0 0 0 CRITICAL ? CRT CRT ANSWERS: (a) CRITICAL ACTIVITIES ARE: (b) THE CRITICAL PATH IS: (c) NON-CRITICAL ACTIVITIES AND THEIR SLACK TIMES ARE: WAITING LINES 1. A homemade-ice cream shop has noticed that, often, potential customers will stop outside the store, assess the length of the waiting line, and then decide whether to go in or just pass by. This kind of behavior is known as reneging. True / False Answer: False 2. The owner of a desktop publishing company has 20 loyal clients who periodically require her services. The owner has a finite customer population. True / False Answer: True 3. A PC accessory discount store often has customers who leave the checkout line before being served because of excessive waiting times. This type of customer behavior in waiting lines is known as balking. True / False Answer: True 4. A Laundromat where there are 10 washing machines and 10 drying machines is an example of multiple-channel, multiple- phase. True / False] Answer: True 5. A drive-through system of a fast-food restaurant where customers form a single queue and the first server takes orders, then the second server takes the payments for the food, then the third server hands over the ordered food is an example of multiple-channel, single phase. True / False Answer: True ECONOMIC ORDER QUANTITY MODEL (INVENTORY MGMT & CONTROL): BASIC EOQ MODEL IS Order Quantity Q = 2 DS / H (1) Items purchased from a vender cost $20 each, and the forecast for the next year's demand is 1,000 units. The cost of placing an order is estimated to be $5 every time an order is placed. Storage costs are $4 per unit per year. What quantity should be ordered to minimize inventory related costs? (2) Ray's Satellite Emporium wishes to determine the best order size of their best selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 1,000 units. His cost to carry one unit is $100 per year per unit, and he has estimated that each order costs $25 to place. Based on the EOQ model, how many units should Ray order each time he places an order? THE NEWSBOY PROBLEM - INVENTORY MODELS FOR PERISHABLES ( C = cost of shortage of 1 unit, C = cost of excess of 1 unit) s E SERVICE LEVEL = C S C + S C E (3) Sally's Silk Screening produces special T-shirts that are primarily sold on the Halloween day. She must decide how many to produce for the coming Halloween. During the event itself, which lasts one day, Sally can sell a Tshirt for $20 a-piece. However, when the event ends, any unsold T-shirts are sold for $4 a-piece. It costs Sally $8 to make a specialty T-shirt. Using Sally's estimated distribution of demand, how many T-shirts should she produce for the coming event? DEMAND 300 400 500 600 700 800 Probability .05 .10 .40 .30 .10 .05 COMPUTE COMULATIVE PROBABILITY Hint: What is the optimal service level? What is the cumulative probability distribution? (4) The Lake Nocee Department Store has an opportunity to purchase a special shipment of X-mas tableware at $28 a set. These sets of tableware are to be sold for $35 as a special promotion during the store's 40th anniversary sale. Nocee must purchase the items in units of a dozen sets. Tableware is not part of the store's normal product lines, so if items are not sold during the Xmas cum 40th anniversary, they will be sold in the Bargain Basement for $22.20 per set. A sales consultant has estimated the following distribution of demand. Demand (Dozens) 4 or less 5 6 Probability 0 0.10 0.15 7 8 9 10 11 12 0.25 0.20 0.15 0.10 0.05 0 Determine the optimal order quantity for Nocee regarding this item. PROJECT MANAGEMENT & CONTROL A consulting firm is working on a project and has sorted out the required activities as well as activities order as follows: ACTIVITY A B C D E F G H TIME WKS 3 4 2 6 7 4 4 2 IMMEDIATE PRED A A, B C, D D E, F F, G The network has been drawn as illustrated below. C A E G Start D Finis H B F USE THE COMPUTATION TABLE BELOW TO IDENTIFY (a) SCHEDULED TIMES, (2) CRITICAL ACTIVITIES, and (C) Non-CRITICAL ACTIVITIES AND THEIR SLACK TIMES. Computational Table SLACK ACTIVIT Y A [3] B [4] C [2] D [6] E [7] F [4] G [4] H [2] ES EF LS LF LS - ES 0 0 2 2 4 4 0 0 2 2 4 4 0 0 0 CRITICAL ? CRT CRT ANSWERS: (a) CRITICAL ACTIVITIES ARE: (b) THE CRITICAL PATH IS: (c) NON-CRITICAL ACTIVITIES AND THEIR SLACK TIMES ARE: WAITING LINES 1. A homemade-ice cream shop has noticed that, often, potential customers will stop outside the store, assess the length of the waiting line, and then decide whether to go in or just pass by. This kind of behavior is known as reneging. True / False Answer: False 2. The owner of a desktop publishing company has 20 loyal clients who periodically require her services. The owner has a finite customer population. True / False Answer: True 3. A PC accessory discount store often has customers who leave the checkout line before being served because of excessive waiting times. This type of customer behavior in waiting lines is known as balking. True / False Answer: True 4. A Laundromat where there are 10 washing machines and 10 drying machines is an example of multiple-channel, multiple- phase. True / False] Answer: True 5. A drive-through system of a fast-food restaurant where customers form a single queue and the first server takes orders, then the second server takes the payments for the food, then the third server hands over the ordered food is an example of multiple-channel, single phase. True / False Answer: True ECONOMIC ORDER QUANTITY MODEL (INVENTORY MGMT & CONTROL): BASIC EOQ MODEL IS Order Quantity Q = 2 DS / H (1) Items purchased from a vender cost $20 each, and the forecast for the next year's demand is 1,000 units. The cost of placing an order is estimated to be $5 every time an order is placed. Storage costs are $4 per unit per year. What quantity should be ordered to minimize inventory related costs? (2) Ray's Satellite Emporium wishes to determine the best order size of their best selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 1,000 units. His cost to carry one unit is $100 per year per unit, and he has estimated that each order costs $25 to place. Based on the EOQ model, how many units should Ray order each time he places an order? THE NEWSBOY PROBLEM - INVENTORY MODELS FOR PERISHABLES ( C = cost of shortage of 1 unit, C = cost of excess of 1 unit) s E SERVICE LEVEL = C S C + S C E (3) Sally's Silk Screening produces special T-shirts that are primarily sold on the Halloween day. She must decide how many to produce for the coming Halloween. During the event itself, which lasts one day, Sally can sell a Tshirt for $20 a-piece. However, when the event ends, any unsold T-shirts are sold for $4 a-piece. It costs Sally $8 to make a specialty T-shirt. Using Sally's estimated distribution of demand, how many T-shirts should she produce for the coming event? DEMAND 300 400 500 600 700 800 Probability .05 .10 .40 .30 .10 .05 COMPUTE COMULATIVE PROBABILITY Hint: What is the optimal service level? What is the cumulative probability distribution? (4) The Lake Nocee Department Store has an opportunity to purchase a special shipment of X-mas tableware at $28 a set. These sets of tableware are to be sold for $35 as a special promotion during the store's 40th anniversary sale. Nocee must purchase the items in units of a dozen sets. Tableware is not part of the store's normal product lines, so if items are not sold during the Xmas cum 40th anniversary, they will be sold in the Bargain Basement for $22.20 per set. A sales consultant has estimated the following distribution of demand. Demand (Dozens) 4 or less 5 6 Probability 0 0.10 0.15 7 8 9 10 11 12 0.25 0.20 0.15 0.10 0.05 0 Determine the optimal order quantity for Nocee regarding this item. Aggregate Planning Problem # 1 Pomegranate Juice, Inc., produces bottled pomegranate juice. A planner has developed an aggregate forecast for demand (in cases) for the next six months as: Month Forecast 1 400 2 480 3 560 4 720 5 640 6 500 Total Costs: Output Regular time Regular production capacity Overtime production cost Subcontracting cost Inventory Holding cost Beginning inventory = = = = = =0 $10 per case 500 cases per month $16 per case $20 per case $1 per/case/month on avg Develop an aggregate production plan using the following guideline and compute the total cost for the plan (a) Policy - level production plan, supplemented by inventory and overtime as needed USE THE COMPUTATIONAL TABLE BELOW COMPUTATION AID Period Forecast Output: Regular Overtime Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Costs: Output Regular Overtime Subcontract Inventory Back orders TOTAL 1 400 2 480 3 560 4 720 5 640 6 500 Total 3300 500 ----- 500 ----- 500 ----- 500 ----- 500 ----- 500 ----- 3000 --------- ----- ----- ----- ----- ----- ----- ------------- PROJECT MANAGEMENT & CONTROL A consulting firm is working on a project and has sorted out the required activities as well as activities order as follows: ACTIVITY A B C D E F G H TIME WKS 3 4 2 6 7 4 4 2 IMMEDIATE PRED A A, B C, D D E, F F, G The network has been drawn as illustrated below. C A E G Start D Finis H B F USE THE COMPUTATION TABLE BELOW TO IDENTIFY (a) SCHEDULED TIMES, (2) CRITICAL ACTIVITIES, and (C) Non-CRITICAL ACTIVITIES AND THEIR SLACK TIMES. Computational Table SLACK ACTIVIT Y A [3] B [4] C [2] D [6] E [7] F [4] G [4] H [2] ES EF LS LF LS - ES 0 0 2 2 4 4 0 0 2 2 4 4 0 0 0 CRITICAL ? CRT CRT ANSWERS: (a) CRITICAL ACTIVITIES ARE: (b) THE CRITICAL PATH IS: (c) NON-CRITICAL ACTIVITIES AND THEIR SLACK TIMES ARE: WAITING LINES 1. A homemade-ice cream shop has noticed that, often, potential customers will stop outside the store, assess the length of the waiting line, and then decide whether to go in or just pass by. This kind of behavior is known as reneging. True / False Answer: False 2. The owner of a desktop publishing company has 20 loyal clients who periodically require her services. The owner has a finite customer population. True / False Answer: True 3. A PC accessory discount store often has customers who leave the checkout line before being served because of excessive waiting times. This type of customer behavior in waiting lines is known as balking. True / False Answer: True 4. A Laundromat where there are 10 washing machines and 10 drying machines is an example of multiple-channel, multiple- phase. True / False] Answer: True 5. A drive-through system of a fast-food restaurant where customers form a single queue and the first server takes orders, then the second server takes the payments for the food, then the third server hands over the ordered food is an example of multiple-channel, single phase. True / False Answer: True ECONOMIC ORDER QUANTITY MODEL (INVENTORY MGMT & CONTROL): BASIC EOQ MODEL IS Order Quantity Q = 2 DS / H (1) Items purchased from a vender cost $20 each, and the forecast for the next year's demand is 1,000 units. The cost of placing an order is estimated to be $5 every time an order is placed. Storage costs are $4 per unit per year. What quantity should be ordered to minimize inventory related costs? (2) Ray's Satellite Emporium wishes to determine the best order size of their best selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 1,000 units. His cost to carry one unit is $100 per year per unit, and he has estimated that each order costs $25 to place. Based on the EOQ model, how many units should Ray order each time he places an order? THE NEWSBOY PROBLEM - INVENTORY MODELS FOR PERISHABLES ( C = cost of shortage of 1 unit, C = cost of excess of 1 unit) s E SERVICE LEVEL = C S C + S C E (3) Sally's Silk Screening produces special T-shirts that are primarily sold on the Halloween day. She must decide how many to produce for the coming Halloween. During the event itself, which lasts one day, Sally can sell a Tshirt for $20 a-piece. However, when the event ends, any unsold T-shirts are sold for $4 a-piece. It costs Sally $8 to make a specialty T-shirt. Using Sally's estimated distribution of demand, how many T-shirts should she produce for the coming event? DEMAND 300 400 500 600 700 800 Probability .05 .10 .40 .30 .10 .05 COMPUTE COMULATIVE PROBABILITY Hint: What is the optimal service level? What is the cumulative probability distribution? (4) The Lake Nocee Department Store has an opportunity to purchase a special shipment of X-mas tableware at $28 a set. These sets of tableware are to be sold for $35 as a special promotion during the store's 40th anniversary sale. Nocee must purchase the items in units of a dozen sets. Tableware is not part of the store's normal product lines, so if items are not sold during the Xmas cum 40th anniversary, they will be sold in the Bargain Basement for $22.20 per set. A sales consultant has estimated the following distribution of demand. Demand (Dozens) 4 or less 5 6 Probability 0 0.10 0.15 7 8 9 10 11 12 0.25 0.20 0.15 0.10 0.05 0 Determine the optimal order quantity for Nocee regarding this item. Aggregate Planning Problem # 1 Pomegranate Juice, Inc., produces bottled pomegranate juice. A planner has developed an aggregate forecast for demand (in cases) for the next six months as: Month Forecast 1 400 2 480 3 560 4 720 5 640 6 500 Total Costs: Output Regular time Regular production capacity Overtime production cost Subcontracting cost Inventory Holding cost Beginning inventory = = = = = =0 $10 per case 500 cases per month $16 per case $20 per case $1 per/case/month on avg Develop an aggregate production plan using the following guideline and compute the total cost for the plan (a) Policy - level production plan, supplemented by inventory and overtime as needed USE THE COMPUTATIONAL TABLE BELOW COMPUTATION AID Period Forecast Output: Regular Overtime Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Costs: Output Regular Overtime Subcontract Inventory Back orders TOTAL 1 400 2 480 3 560 4 720 5 640 6 500 Total 3300 500 ----- 500 ----- 500 ----- 500 ----- 500 ----- 500 ----- 3000