Math Flashcards
Nick is a planner for Nike. He has a forecast of 10,000 units for 2020. Using a weighted moving average, Nick would like to know the forecast for each quarter. He assigned Q1 with a weight of .77 and Q3 with a weight of 0.86. What are the units forecast for Q1 and Q3?
10,000/4= 2,500 because there are 4 quarters in a year
Q1 = 2,500 * 0.77 = 1,925
Q3 = 2,500 * 0.86 = 2,150
A DVD rental store has 850 movies that can be rented. However, due to late customer returns they only have 625 movies available for rental. On average, 550 movies are rented monthly. What is the effective capacity and efficiency rate?
effective capacity = 625
efficiency rate = 550 / 625 = 88%
A technology company uses the following daily operations to manufacture its products. INVENTORY: 1000 units available per day. ASSEMBLY: 600 units assembled per day. DELIVERY: 900 units per day. What is the throughput for this company’s manufacturing operations?
600 units/day
Kelly’s Sushi can serve up to 5000 customers per day. However, due to inventory shortages and restaurant capacity they only serve 3750 customers per day. On average, 1700 customers are served daily. What is the design capacity, effective capacity, capacity utilization, and efficiency rate?
design capacity = 5000
effective capacity = 3750
capacity utilization = 1700 / 5000 = 34%
efficiency rate = 1700 / 3750 = 45%
A DVD rental store has 850 movies that can be rented. However, due to late customer returns they only have 625 movies available for rental. On average, 550 movies are rented monthly. What is the design capacity and capacity utilization?
design capacity = 850
capacity utilization = 550/850 = 65%
What is the formula for calculating capacity utilization?
Capacity utilization = Actual Output / Design Capacity
Becky is an accountant for Mulligan Company. Mulligan manufactures 800 units a month at each of their locations. Her manager, Ann, has requested information regarding the total cost for each location. She would like to know the total operating cost for each location from lowest to highest. Based on the following information, in what order should Becky send the locations?
Here is the calculation for each location:
Location A: $250,000 + ($11.94 * 800) = $259,552.00
Location B: $258,000 + ($6.00 * 800) = $262,800.00
Location C: $251,000 + ($9.00 * 800) = $258,200.00
Location D: $245,000 + ($19.00 * 800) = $260,200.00
Location E: $247,000 + ($10.00 * 800) = $255,000.00
Now, let’s order the locations from lowest to highest total operating cost:
Location Total Operating Cost
A $259,552.00
E $255,000.00
C $258,200.00
D $260,200.00
B $262,800.00
So, Becky should send the locations in the following order: E, C, A, D, B.
Peter is the master production scheduler for Best Buy. He received an order for 50 cell phones from Corporation D. He currently has 50 cell phones on hand and 20 in safety stock. Peter does not have a minimum requirement for inventory regarding cell phones. How many cell phones should Peter schedule for production?
total requirements for inventory = 120
current inventory = 70
total amount needed for production = 50 for inventory + 50 for order received = 100 total
Crammer Products is looking for a new location to produce their products. They are producing 300 units per month. They wish to have the lowest operating cost. Based on the following information, which location should they choose?
Location 5
Accountants have to type a total of 50 words to complete a customer order. Jim types 3000 words per hour and Amy types 4000 words per hour. What is the design capacity for the number of customer orders during an 8 hour work day for Jim and Amy?
Step 1: Calculate Orders per Hour
First, we calculate how many orders each person can complete in an hour. This is done by dividing the number of words they can type in an hour by the number of words in an order.
For Jim:
3000 words/hour ÷ 50 words/order = 60 orders/hour
For Amy:
4000 words/hour ÷ 50 words/order = 80 orders/hour
Step 2: Calculate Orders per Workday
Next, we multiply the number of orders each person can complete in an hour by the number of hours in a workday.
For Jim:
60 orders/hour × 8 hours = 480 orders
For Amy:
80 orders/hour × 8 hours = 640 orders
Summary
So, the design capacity for the number of customer orders during an 8-hour workday is:
For Jim: 480 orders
For Amy: 640 orders
Person Orders per Hour Orders per Workday
Jim 60 480
Amy 80 640
Xavier would like to determine the Q1 and Q4 forecast for 2020 based on last year’s sales. What should Xavier’s forecast be if he uses a weighted moving average? Please round your answer.
144 and 272
What is the formula for calculating total cost?
Total Cost = (Variable Cost x Number of Units) + Fixed Cost
Michael is trying to determine where to open two new store locations. He has population data to determine the amount of revenue he will receive for each location. He is charged a $1000 fee for operating in the evening at the Downtown location. He is given a credit of $1153 for operating during the evening at the midtown location. Based on this information, which locations should he choose?
Perimeter and Downtown
