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University Of Windsor

78-633 Introduction to Business Logistics Management



Assignment 1
DUE ONLINE: Tuesday, Feb. 25, 2014 @ 11:00 pm

Assignments have to be provided in typewritten from via the course site on CLEW.
Submit your work as a single file ( in MS Word format and excel if any).
Please make sure to provide your name/ID in the submitted file header.

COLLABORATION IS ALLOWED, BUT EACH STUDENT HAS TO SUBMIT HIS/HER OWN, ORIGINAL
WORK.

Grading: M/C questions 3 pt. each
Short answer questions 5 pts. each
Computation problems 20 pts. each
Total max. points: 3*3+2*5 + 20*4 = 99

(Please print your solutions)

1. Multiple Choice Questions

1) Supply chain profitability is
A) not correlated to the value generated by the various stages of the supply chain.
B) the total profit to be shared across all supply chain stages.
C) the difference between the revenue generated from the customer and the overall cost across
the supply chain.
D) the total revenue generated by the distributor stage of the supply chain.
E) B and C only
Answer: E

2) Which of the following is not a cycle in the supply chain cycle view?
A) Customer order cycle
B) Replenishment cycle
C) Manufacturing cycle
D) Procurement cycle
E) All of the above are part of the supply chain cycle view.
Answer: E


3 ) Which of the following is not an accurate statement about pull processes?
A) May also be referred to as speculative processes.
B) Execution is initiated in response to a customer order.
C) At the time of execution, demand is known with certainty.
D) May also be referred to as reactive processes.
E) All of the above are accurate.
Answer: A


2. List three policies and procedures that govern cycle time (lecture 3)
Any three of below:
Inventory stock policies and levels
Order picking - processing priorities
Transportation mode selection
Back order procedures


3. List two strengths of Qualitative methods:

Any two of below:

Highly responsive to latest changes in environment.
Can include inside and soft information difficult to quantify.
Can compensate for one-time or unusual events.
Provide user with a sense of ownership.


4. Computation problems (20 points)
Beta Products is planning

What effective storage space is needed in square feet excluding aisle, office, and other space
requirements?

Solution:
We can develop an 80-20 curve based on 30 percent of the items accounting for 70 percent of
sales. That is,





5. Computation problem (20 points)

Four trucks, 1, 2, 3, and 4, are waiting on a loading dock at XYZ company that has only
a single service bay. ..

Solutions
FCFS

Sequence Completion Time Flow Time Tardiness

1 1:20 20 0
2 1:34 34 0
3 2:09 69 19
4 2:19 79 49

Total 202 68

Mean flow time = 202/4 = 50.5
Average tardiness = 68/4 = 17
Utilization = 79/202 = 39%


SPT

Truck Completion Time Flow Time Tardiness

4 1:10 10 0
2 1:24 24 0
1 1:44 44 19
3 2:19 79 29

Total 157 48

Mean flow time = 157/4 = 39.25
Average tardiness = 48/4 = 12
Utilization = 79/157 =50.3%

EDD
Unloading Completion
Truck Time Time Flow Time Tardiness
1 20 1:20 20 0
4 10 1:30 30 0
2 14 1:44 44 0
3 35 2:19 79 29

Total 173 29

Mean flow time = 173/4 = 43.25
Average tardiness = 29/4 = 7.25
Utilization = 79/173 =45.7%





6. Computation problem (20 points)
Observed weekly sales of ball peen hammers at the town hardware store over eight-
week period have been 14, 9, 30, 22, 34, 12, 19, 23.

Solutions:

a) Week MA(3) Forecast (10 points)

4 17.67
5 20.33
6 28.67
7 22.67
8 21.67

b) and c

Week ES(.15) Demand MA(3) |err| |err|

4 17.67 22 17.67 4.33 4.33
5 18.32 34 20.33 15.68 13.67
6 20.67 12 28.67 8.67 16.67
7 19.37 19 22.67 0.37 3.67
8 19.32 23 21.67 3.68 1.33

6.547540 7.934
MAD-ES MAD-MA

Based on these results, ES(.15) had a lower MAD over the five weeks


7. Computation problem:(20 points)

Determine the seasonal factors for each quarter by the method of centered
moving average


Numbers Season Demand
Moving
Avg
(N=4)
a)
Centered
MA (N=4)
CMA Back
on Period
Demand/CMA
back on
period
Seasonal
Factors Final SF
2005
1 1 24 44.75 0.536312849
2 2 15 44.75 0.335195531
2.5 43
3 3 55 44 1.25
3.5 45
4 4 78 45.5 1.714285714
4.5 46
2006
5 1 32 43 47.375 0.675461741
5.5 48.75
6 2 19 45 49.625 0.382871537
6.5 50.5
7 3 66 46 51.75 1.275362319
7.5 53
8 4 85 48.75 54 1.574074074
8.5 55
2007
9 1 42 50.5 55.75 0.753363229 0.65504594 0.657942362
9.5 56.5
10 2 27 53 58.125 0.464516129 0.394194399 0.395937411
10.5 59.75
11 3 72 55 56.9375 1.264544457 1.263302258 1.268888212
11.5
12 4 98 56.5 56.9375 1.72118551 1.669848433 1.677232015
59.75 3.98239103 4

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