Operation Management: Hw #1

Operations Management Savannah State University Homework Assignment #1 Operations Management Assignment: Competitiveness, Strategy, Productivity, and Forecasting Objective: Demonstrate your understanding of core operations management concepts, including competitiveness, strategy, productivity, and forecasting. Instructions: Complete the following problems. Show all work for full credit. Submit your answers as a Microsoft Word document or PDF, with any Excel calculations attached. Be sure to number your responses. Part 1: Competitiveness and Strategy (25 points) 1. Competitiveness: a. Define competitiveness in the context of operations management. (2 points) b. List three factors that influence a companys competitiveness. (3 points) c. Provide an example of a company known for its competitive advantage and briefly explain why it is considered competitive. (5 points) 2. Strategy: a. Define operations strategy. (2 points) b. Briefly explain the three common operations strategies: cost leadership, differentiation, and focus. (6 points) c. Choose a company and identify which strategy it uses. Provide evidence to support your choice. (7 points) Part 2: Productivity (25 points) 1. Basic Productivity Calculation: o A factory produces 3,000 units per week. The factory has 60 workers, each working 40 hours per week. o The average hourly wage is $20, and the total material cost for the week is $10,000. o The total overhead costs for the week are $15,000. Calculate the following: a. Labor Productivity (units produced per labor hour) (5 points) b. Material Productivity (units produced per dollar of material) (5 points) c. Overall Productivity (units produced per dollar of total cost) (5 points) 2. Improving Productivity: o Identify two ways this factory could improve its productivity. (10 points) Part 3: Forecasting (50 points) 1. Introduction to Forecasting: a. Define forecasting and explain its importance in operations management. (5 points) b. Identify two common forecasting methods and describe when each might be most appropriate. (5 points) 2. Data Analysis: Use the following monthly sales data for a retail store: o January: 500 units o February: 550 units o March: 600 units o April: 700 units o May: 750 units o June: 800 units o July: 850 units o August: 900 units o September: 850 units o October: 800 units o November: 750 units o December: 900 units Calculate the following for January of the following year: a. Three-Month Moving Average (15 points) b. Weighted Moving Average (weights: 0.5, 0.3, 0.2 for the most recent months) (15 points) c. Mean Absolute Deviation (MAD) for each method (10 points) 3. Reflection: o Based on your results, which forecasting method would you recommend for this business and why? (10 points)