### Determine the crossover point for the two options

Assignment Help Operation Management
##### Reference no: EM1342210

Question 1. The owner of a motel is considering outsourcing the daily room cleanup to Duffy's Maid Service. The manager rents an average of 50 rooms for each of 365 nights. The owner's cost to clean a room is \$12. The Duffy's Maid Service quote is \$18 per room plus a fixed cost of \$24,000 for sundry items such as uniforms with the motel's room. The owner's fixed cost for space, equipment, and supplies is \$60,000.

(a) Determine the crossover point for the two options. Please give the formula for calculating crossover points, at least one step of calculation, and the correct answer for full credit.

(b) Which option should be chosen and why?

Question 2. Historical demand for a product is

 Month Demand January 12 February 11 March 15 April 12 May 16 June 15

(a) Using a weighted moving average with weights of 0.6, 0.3, and 0.1. The weight of 0.6 is to be attached to the most recent demand and 0.3 to the second most recent demand. Compute the July forecast. For full credit, please provide at least one step of calculation and the correct forecast.

(b) Using a simple three-month moving average, compute the forecasts for April, May, and June. For each forecast, please provide at least one step of calculation and the correct value.

(c) Based on the forecasts from (b), Compute the mean absolute deviation (MAD) for the simple 3-month moving average method. For full credit, please provide the formula, at least one step of calculation, and the correct answer.

(d) Using exponential smoothing with α = 0.2 and a June forecast = 13, compute the forecast for July. For full credit, please provide the formula, at least one step of calculation and the correct forecast.

(e) Using simple linear regression analysis, calculate the regression equation for the product. For both parameters a and b, please provide the formula, at least one step of calculation, and the correct value for full credit.

(f) Using the regression equation from (d), calculate the forecast for July. Please provide one step of calculation and the correct answer for full credit.

### Write a Review

#### Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

#### Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

#### Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

An analysis of the holding costs, including the appropriate annual holding cost rate.

#### Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

#### Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

#### Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

#### Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

#### A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

#### Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

#### Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

#### Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.