Operations mgmt with std dvd 9e – problems set

The manager of a travel agency has been using a seasonally adjusted forecast to predict demand for packaged tours. The actual and predicted values are as follows:

Period DemandPredicted

1138 111

2194 200

3157 150

491 94

595 80

6132 144

7126 128

8127 124

995 96

10149 150

11104 94

1285 75

13120 140

14134 128

________________________________________

a.Compute MAD for the fifth period, then update it period by period using exponential smoothing with α = .1.(Round your intermediate calculations and final answers to 3 decimal places.)

PeriodA

Demand MADt

1138

2194

3157

491

595

6132

7126

8127

995

10149

11104

1285

13120

14134

________________________________________

b.Compute a tracking signal for periods 5 through 14 using the initial and updated MADs. (Negative values should be indicated by a minus sign. Round your intermediate calculations and final answers to 3 decimal places.)

PeriodA

DemandTracking

Signal

1138

2194

3157

491

595

6132

7126

8127

995

10149

11104

1285

13120

14134

________________________________________

Checkout time at a supermarket is monitored using a mean and a range chart. Six samples of n = 20 observations have been obtained and the sample means and ranges computed:

SampleMeanRangeSampleMeanRange

13.06.4243.13.46

23.15.4453.06.46

33.11.4163.09.45

________________________________________

Q 2,

Factors for three-sigma control limits for and R charts

FACTORS FOR R CHARTS

Number of Observations in Subgroup,

nFactor for

Chart,

A2Lower

Control Limit,

D3Upper

Control Limit,

2 1.88 03.27

3 1.02 02.57

4 0.73 02.28

5 0.58 02.11

6 0.48 02.00

7 0.42 0.081.92

8 0.37 0.141.86

9 0.34 0.181.82

10 0.31 0.221.78

11 0.29 0.261.74

12 0.27 0.281.72

13 0.25 0.311.69

14 0.24 0.331.67

15 0.22 0.351.65

16 0.21 0.361.64

17 0.20 0.381.62

18 0.19 0.391.61

19 0.19 0.401.60

20 0.18 0.411.59

________________________________________

a.Using the factors in the above table, determine upper and lower limits for mean and range charts.(Round your intermediate calculations and final answers to 4 decimal places.)

Upper limit for mean

Lower limit for mean

Upper limit for range

Lower limit for range

_______________________________________

b.Is the process in control?

Yes

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