COMM 205
Fall 2023
Introduction to Operations Management
Assignment 1
Competitiveness, Strategic Planning, Productivity
and Demand Forecasting
Instructor: Sattar Safaei
Date Due: Sunday, OCT 01, 11:59pm
Total Marks: 30
General Instructions
• This assignment is individual work. You may discuss questions and problems with anyone, but
the work you hand in for this assignment must be your own work.
• Assignments must be submitted to Canvas.
• Always include the following identification in your solutions: your name, NSID, student ID,
instructor’s name, course name, and course section number.
• For numerical calculations, use precision of three decimal points.
• Evaluation rubric is given for some of the questions, so you can learn how they are
marked. It will not be published for all the questions.
• Text document submissions (NOT HANDWRITTEN) for questions must be one of these file formats:
text-only (.doc,.docx), or PDF (.pdf).
• Canvas will not let you submit work after the assignment deadline. It is advisable to hand
in each answer that you are happy with as you go. You can always revise and resubmit as many times
as you like before the deadline; only your most recent submission will be graded.
What to Hand In
Hand in your answers in a file called Assignment#1 on the course website. Allowed file formats
are plain text (.txt), and PDF (.pdf). Be sure to include your identification (see "General
Instructions") at the top of your document. Documents in unapproved formats that cannot be
opened conveniently will not be graded and will receive 0 points.
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COMM 205
Fall 2023
Introduction to Operations Management
Question 1 (2 points):
Problem: A company produced 400 hoses last week using 8 workers, and 320 hoses this week using 5 workers.
In which period was worker productivity higher?
Evaluation:
• 0 marks for Nothing submitted, or document cannot be opened.
• -1 mark for missing identification in the document (name, NSID, student ID)
• 2 marks for correct content.
Mavis Nguyen/ had452/ 11347793/ Sattar Safaei/ COMM 205-03
 Last week
- Total measure:
400
8
= 50 hoses per worker
 This week:
- Total measure:
320
5
= 64 ℎ𝑜𝑠𝑒𝑠 𝑝𝑒𝑟 𝑤𝑜𝑟𝑘𝑒𝑟
 Worker productivity is higher in this week
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COMM 205
Fall 2023
Introduction to Operations Management
Question 2 (3 points):
Problem:
IT manager that installs LAN cables has tracked the team’s output over the past several weeks.
Observations are as follows:
Calculate the labor productivity for each week. Based on your calculations, what can you conclude about
team size and productivity?
Evaluation:
•
•
•
•
0 marks for Nothing submitted, or document cannot be opened.
-1 mark for missing identification in the document (name, NSID, student ID)
1 mark for correct productivity with correct units.
2 marks for conclusion statement.
Mavis Nguyen/ had452/ 11347793/ Sattar Safaei/ COMM 205-03







Week 1 = 960/4 = 240 square meters per worker
Week 2 = 709/3 = 236.333 square meters per worker
Week 3 = 968/4 = 242 square meters per worker
Week 4 = 506/2 = 253 square meters per worker
Week 5 = 696/3 = 232 square meters per worker
Week 6 = 580/2 = 290 square meters per worker
The larger the team size is, the more productive it gets.
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COMM 205
Fall 2023
Introduction to Operations Management
Question 3 (2 points):
Problem: A Production unit produces 2,048 units. The input costs for this production are:
Labor and staff: $1,080
Materials: $526
Machine overhead: $2,400
What is the productivity?
Mavis Nguyen/ had452/ 11347793/ Sattar Safaei/ COMM 205-03
- Productivity =
2048
1080+526+2400
= 0.511 𝑢𝑛𝑖𝑡𝑠 𝑝𝑒𝑟 $
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COMM 205
Fall 2023
Introduction to Operations Management
Question 4 (3 points):
Problem: Assume 40-hour weeks and an hourly wage rate of $15. Overhead is 1.5 times weekly labor cost.
Material cost is $10 per kg. Calculate the multi-factor productivity measure for each week below. What do
the productivity figures suggest? Also calculate Productivity growth
Week
Output (units)
Workers
Material (kg)
1
1000
6
45
2
1338
7
46
Evaluation:
•
•
•
•
0 marks for submitting nothing and/or files that cannot be opened.
-1 mark for missing identification (name, NSID, student number)
1 mark for correct productivity growth calculation
2 marks for suggestion about productivity figures
Mavis Nguyen/ had452/ 11347793/ Sattar Safaei/ COMM 205-03
 Week 1:
1000
- Multi-factor productivity = (40×15×6)+(45×10)+1.5(40×15×6) = 0.106 𝑢𝑛𝑖𝑡𝑠 𝑝𝑒𝑟 $
 Week 2:
1338
- Multi-factor productivity = (40×15×7)+(46×10)+1.5(40×15×7) = 0.122 𝑢𝑛𝑖𝑡𝑠 𝑝𝑒𝑟 $
 Productivity Growth =
0.122−0.106
0.106
= 0.151
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COMM 205
Fall 2023
Introduction to Operations Management
Question 5 (5 points):
Problem: Observed weekly sales of a hammer at a town hardware store over eight-weeks have been 14, 9, 30, 22,
34, 12, 19, 23.
a) Find 3 period Moving Averages (MA-3) forecasts for weeks 4 through 9.
b) Find the Exponential Smoothing forecast for week 9 with a smoothing constant of= 0.15.
Week
Actual Demand
1
2
3
4
5
6
7
8
9
14
9
30
22
34
12
19
23
-
MA-3
Forecast
ES(0.15)
Forecast
Evaluation:
•
•
•
•
0 marks for submitting nothing and/or files that cannot be opened.
-1 mark for missing identification (name, NSID, student number)
2 marks for correct calculation (a)
3 marks for correct calculation (b)
Mavis Nguyen/ had452/ 11347793/ Sattar Safaei/ COMM 205-03
Week
Actual Demand
MA-3
Forecast
ES(0.15)
Forecast
1
14
2
9
14
3
30
0.15(9)+0.85(14)=13.25
4
22
17.67
0.15(30)+0.85(13.25)=15.76
5
34
20.33
0.15(22)+0.85(15.76)=16.70
6
12
28.67
0.15(34)+0.85(16.70)=19.30
7
19
22.67
0.15(12)+0.85(19.30)=18.21
8
23
21.67
0.15(19)+0.85(18.21)=18.33
9
-
18
0.15(23)+0.85(18.33)=19.03
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COMM 205
Fall 2023
Introduction to Operations Management
Question 6 (5 points):
Problem: The Best Buy has recorded sales (in units) for three products during the last 15 workdays:
Workday
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Apple
Laptop
32
36
34
36
37
32
36
38
31
33
37
33
39
36
35
Apple
Watch
22
21
23
23
26
27
27
29
28
30
31
32
33
34
37
Apple
Tablet
46
27
28
24
23
49
30
21
15
19
48
27
28
25
23
1. Plot the three time series variables to determine their pattern (using Excel).
2. Forecast workday 16 sales for each of the products using an appropriate naïve method. And justify
each calculation using naïve method (in each case).
Evaluation:
•
•
•
•
•
•
0 marks for Nothing submitted, or document cannot be opened.
-1 mark for missing identification in the document (name, NSID, student ID)
1 mark for correct plotting (a).
1 mark for correct pattern
1 mark for justification of method choice.
2 marks for correct forecast for day 16 sales.
Mavis Nguyen/ had452/ 11347793/ Sattar Safaei/ COMM 205-03
b)
Workday 16:
- Apple Laptop = 𝐹𝑡 = 𝐴𝑡−1 => 𝐹16 = 𝐴15 = 37 (Stable)
- Apple Watch = 𝐹𝑡 = 𝐴𝑡−1 + (𝐴𝑡−1 − 𝐴𝑡−2 ) => 𝐹16 = 𝐴15 + (𝐴15 − 𝐴14 )
=> 37 + (37 − 34) = 40 (Trend)
- Apple Tablet = 𝐹𝑡 = 𝐴𝑡−𝑛 => 𝐹16 = 𝐴11 = 48 (Seasonality)
7|P a g e
COMM 205
Fall 2023
Introduction to Operations Management
Question 7 (3 points):
Problem: Given the quarterly demand from 2017 to 2022, forecast the quarterly demand in 2023 using
Annual averages method.
Period
1
2
Year
2017
2017
Quarter
1
2
Sales (Actual Demand)
362
385
3
4
2017
2017
3
4
432
341
5
6
2018
2018
1
2
382
409
7
8
2018
2018
3
4
498
387
9
10
2019
2019
1
2
473
513
11
12
2019
2019
3
4
582
474
13
14
2020
2020
1
2
544
582
15
16
2020
2020
3
4
681
557
17
18
2021
2021
1
2
628
707
19
20
2021
2021
3
4
773
592
21
22
2022
2022
1
2
627
725
23
2022
3
854
8|P a g e
COMM 205
Fall 2023
Introduction to Operations Management
24
2022
4
25
26
2023
2023
1
2
27
28
2023
2023
3
4
661
NOTE: Please show step by step calculation. Keep 2 decimal places.
Mavis Nguyen/ had452/ 11347793/ Sattar Safaei/ COMM 205-03
2017
2018
2019
2020
2021
2022
1
362
382
473
544
628
627
2
385
409
513
582
707
725
3
432
498
582
681
773
854
4
341
387
474
557
592
661
Total
1,520
1,676
2,042
2,364
2,700
2,867
Average
1,520/4 =
380
1,676/4 =
419
2,042/4 =
510.5
2,364/4 =
591
2,700/4 =
675
2,867/4 =
716.75
Quarter
Average
Ratio
Ratio
1
362/380 =
0.95
382/419 =
0.91
473/510.5
= 0.93
544/591 =
0.92
628/675 =
0.93
627/716.75
= 0.87
0.92
2
385/380 =
1.01
409/419 =
0.98
513/510.5
= 1.00
582/591 =
0.98
707/675 =
1.05
725/716.75
= 1.01
1.01
3
432/380 =
1.14
498/419 =
1.19
582/510.5
= 1.14
681/591 =
1.15
773/675 =
1.14
854/716.75
= 1.19
1.16
4
341/380 =
0.90
387/419 =
0.92
474/510.5
= 0.93
557/591 =
0.94
592/675 =
0.88
661/716.75
= 0.92
0.92
9|P a g e
COMM 205
Fall 2023
Introduction to Operations Management


Equation: 289.4x + 1181.9
Annual demand (2023): 289.4(7) + 1181.9 = 3207.7
Average quarterly demand (2023): 3207.7/4 = 801.93
Quarter
Demand in 2023
1
0.92 x 801.93= 737.78
2
1.01 x 801.93= 809.94
3
1.16 x 801.93= 930.23
4
0.92 x 801.93= 737.78
Question 8 (2 points):
Problem: The manager of ABC Manufacturing uses two different forecasting techniques to forecast
sales of new fittings. Using MAD as a criterion, which technique produces more accurate forecasts?
Month
1
2
3
4
5
6
Demand
492
470
485
493
498
492
Technique A forecast
488
484
480
490
497
493
Technique B forecast
495
482
478
488
492
493
NOTE: Keep 2 decimal places.
Mavis Nguyen/ had452/ 11347793/ Sattar Safaei/ COMM 205-03

MAD =
Technique A forecast:
|𝟒𝟗𝟐−𝟒𝟖𝟖|+|𝟒𝟕𝟎−𝟒𝟖𝟒|+|𝟒𝟖𝟓−𝟒𝟖𝟎|+|𝟒𝟗𝟑−𝟒𝟗𝟎|+|𝟒𝟗𝟖−𝟒𝟗𝟕|+|𝟒𝟗𝟐−𝟒𝟗𝟑|
𝟔
= 𝟒. 𝟔𝟕
10 | P a g e
COMM 205
Fall 2023
Introduction to Operations Management

MAD =
Technique B forecast:
|𝟒𝟗𝟐−𝟒𝟗𝟓|+|𝟒𝟕𝟎−𝟒𝟖𝟐|+|𝟒𝟖𝟓−𝟒𝟕𝟖|+|𝟒𝟗𝟑−𝟒𝟖𝟖|+|𝟒𝟗𝟖−𝟒𝟗𝟐|+|𝟒𝟗𝟐−𝟒𝟗𝟑|
𝟔
= 𝟓. 𝟔𝟕
 Technique A produces more accurate forecast because the technique with the
lowest MAD is more accurate
Question 9 (2 points):
Problem: ES forecasting is like operating a vehicle or truck. Compare and contrast: driving a truck and
using the exponential smoothing technique.
Mavis Nguyen/ had452/ 11347793/ Sattar Safaei/ COMM 205-03
-
Comparision:

Both entail making choices based on prior observations: When operating a truck, you must
make choices based on prior observations and driving experiences. Similar to this, exponential
smoothing predicts future values based on prior data.
Both demand a certain level of aptitude and comprehension: operating a truck necessitates
familiarity with safety procedures, vehicle control, and traffic laws. The basic ideas and
parameters of exponential smoothing must also be understood before applying it.




Contrast:
Task: Forecasting using exponential smoothing is a statistical approach, but driving a truck
literally includes operating a vehicle and navigating through traffic.
Application domain: While exponential smoothing is utilized in many other industries,
including business, economics, and finance, driving a truck is relevant in transportation and
logistics.
Complexity: Due to considerations including traffic conditions, road dangers, and vehicle
maintenance, driving a truck can be more complicated and difficult. On the other hand, once
the basic ideas are grasped, exponential smoothing is a much easier procedure.
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COMM 205
Fall 2023
Introduction to Operations Management
Question 10 (3 points):
Mavis Nguyen/ had452/ 11347793/ Sattar Safaei/ COMM 205-03
Problem: In the beginning of the current millennium When new players came into the market,
and cheaper air compressors were offered in the market, ATLAS COPCO needed to fight in the red
ocean of cheap compressors, but they initiated a new market segment and customers. They offered
what exactly their customers needed.
They want to move to the total customer solution in the Delta Model, With the goal of working not in
the red ocean of cheap compressors and opening a new market segment and customers, and working
collaboratively with their customers, what could be the strategies and tactics and objectives for ATLAS
COPCO.
1. A customer-focused strategy:
- Strategy: Make the client the focal point of all actions and choices.
- Tactic:
+) To pinpoint the precise demands of your audience, do in-depth market research and consumer
surveys.
+) Create specialized solutions that are suited to the individual needs of each customer.
- Objective:
+) Increase client loyalty and retention rates.
+) Achieve a high customer satisfaction rating.
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