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Introduction To Production Engineering: Somali National University

This document contains three questions related to production forecasting, productivity measurement, and break-even analysis. 1. It provides actual demand data and two sets of forecasts for bottled water cases. It asks to compute accuracy measures (MAD, MES, MAPE) to determine which forecast is more accurate. 2. It provides weekly production output, labor, and material inputs. It asks to calculate multi-factor productivity and interpret the results. 3. It presents a scenario where a manager must choose how many machines to purchase. It provides cost and revenue information and asks to calculate the break-even point for one and two machines and determine how many to purchase given estimated demand.

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Abdi samad Mohamed
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107 views1 page

Introduction To Production Engineering: Somali National University

This document contains three questions related to production forecasting, productivity measurement, and break-even analysis. 1. It provides actual demand data and two sets of forecasts for bottled water cases. It asks to compute accuracy measures (MAD, MES, MAPE) to determine which forecast is more accurate. 2. It provides weekly production output, labor, and material inputs. It asks to calculate multi-factor productivity and interpret the results. 3. It presents a scenario where a manager must choose how many machines to purchase. It provides cost and revenue information and asks to calculate the break-even point for one and two machines and determine how many to purchase given estimated demand.

Uploaded by

Abdi samad Mohamed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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SOMALI NATIONAL UNIVERSITY

Introduction to Production Engineering


Home Activity I
1. Two different forecast techniques (F1 and F2) were used to forecast demand for cases of bottled water.
Actual demand the two sets of forecasts are as follows:
Period and Demand Predicted Demand
Period Unit sold F1 F2
1 68 66 66
2 75 68 68
3 70 72 70
4 74 71 72
5 69 72 74
6 72 70 76
7 80 71 78
8 78 74 80
(a) Compute MAD for each set of forecast. Which forecast is better or appears to be more accurate?
(b) Compute MES for each set of forecast. Which forecast is better or appears to be more accurate?
(c) Compute MAPE for each set of forecast. Which forecast is better or appears to be more accurate?

2. (a) Compute the multi-factor productivity measure for each of the weeks shown. (b) What do the
productivity figures suggest? Assume 40 hour weeks and an hourly wage of $12. Overhead is 1.5 times
weekly labor cost. Material cost is $ 6 per pound.
Week Output (units) Workers Materials (lbs)
1 30,000 6 450
2 33,600 7 470
3 32,200 7 460
4 35,400 8 480

3. A manager must decide how many machines of a certain type to purchase. Each machine can process 100
customers per day. One machine will result in a fixed cost of $2,000 per day, while two machines will
result in a fixed cost of $3,800 per day. Variable costs will be $20 per customer, and revenue will be $45
per customer.
a. Determine the break-even point for each range.
b. If estimated demand is 90 to 120 customers per day, how many machines should be purchased?
4.

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