This article covers Assignment: BUS FP4014 Capella University Inventory and Ordering Decisions Questions.
Assignment: BUS FP4014 Capella University Inventory and Ordering Decisions Questions
Assignment: BUS FP4014 Capella University Inventory and Ordering Decisions Questions
Analyze an operations management issue in a hypothetical company and provide answers to five algebraic equations.Operations management is the core of any business. Understanding the basics of operations management and the associated best practices allows you to understand the importance of eliminating waste, while improving quality and customer service. Inventory is no longer simply a necessary evil, but a means by which companies have found ways to gain competitive advantage.SHOW LESSBy successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
Competency 1: Assess the role of operations management within organizations.
Analyze a production decision using an aggregate production rate approach.
Analyze a labor related production decision.
Competency 2: Apply the tools and technology used in Operations Management.
Analyze an inventory decision using an economic order quantity approach.
Analyze an inventory decision using a reorder point approach.
Describe key forecasting methods.
CHECK YOUR PROGRESSUse this online tool to track your performance and progress through your course.
The old management philosophy was to have enough inventories ahead in the system to make sure the customer received the product. This required massive warehouses, tons of raw materials, and a waste of time and efficiency.All businesses are affected by their operations—how they transform inputs into useable outputs. Most companies do not have all the best practices in place, but are striving to incorporate some of them into their culture.The Assessment 5 Context document contains important information related to the following topics:
Questions to Consider
To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.
How are inventory management and aggregate planning similar? How do they differ?
The following optional resources are provided to support you in completing the assessment or to provide a helpful context. For additional resources, refer to the Research Resources and Supplemental Resources in the left navigation menu of your courseroom.
Click the links provided to view the following resources:
Assessment 5 Context.
The following e-books or articles from the Capella University Library are linked directly in this course:
Muller, M. (2011). Essentials of inventory management (2nd ed.). Saranac Lake, NY: AMACOM Books.
Lowe, D. (2002). The dictionary of transport and logistics. London, GBR: Kogan Page.
Course Library Guide
A Capella University library guide has been created specifically for your use in this course. You are encouraged to refer to the resources in the BUS-FP4014 Operations Management for Competitive Advantage Library Guide to help direct your research.
The resources listed below are relevant to the topics and assessments in this course and are not required. Unless noted otherwise, these materials are available for purchase from the Capella University Bookstore. When searching the bookstore, be sure to look for the Course ID with the specific –FP(FlexPath) course designation.
Reid, R. D., & Sanders, N. R. (2016). Operations management: An integrated approach (6th ed.). Hoboken, NJ: Wiley.
Chapter 8, “Forecasting.”
Chapter 13, “Aggregate Planning.”
Chapter 15, “Scheduling.”
For this assessment, suppose that you are the operations manager for ABC Manufacturing, a small manufacturing company founded three years ago. ABC has been manufacturing and selling an electric motor for the past year, but the company has not always had sufficient workers assigned to manufacturing this electric motor in order to satisfy demand. ABC’s president asked you to plan for the production of this motor for the next six months.You have decided you will use a level aggregate plan for the electric motor, meaning that you will manufacture the same number of units each month. ABC’s president has told you that some customers order this motor well in advance of when needed, and thus it is allowable to have backorders, if needed. You know there are currently 150 units in inventory (starting inventory = SI), and ABC’s marketing manager estimates that the demand for the motor (in units) for each of the next six months (M = 6) will be 240, 225, 265, 270, 260, and 275 (D1, D2, D3, D4, and D5 respectively). You have decided you would like to reduce average inventory level of several products (including this one), and you want to have 50 units in inventory six months from now (ending inventory = EI).
Briefly describe the operations management issue in the ABC Manufacturing scenario and describe how you would approach an analysis. Then complete the following problems based on the scenario and provide answers to the algebraic equations.Question 1. Refer to the ABC Manufacturing scenario to complete the following:
Provide the algebraic equation for the monthly aggregate production rate (APR, using SI, EI, D1, D2, D3, D4, D5, and M as variables).
Calculate and provide the numerical monthly aggregate production rate rounded to a whole number.
Question 2. Production employees at ABC work an average of 168 hours per month (HPM), and manufacturing the electric motor involves 3.5 total hours of work per unit (HPU).
Provide the algebraic equation for the number of workers (W) needed to meet the above aggregate production rate (using W, APR, HPM, and HPU as variables).
Calculate and provide the numerical number of workers needed.
Question 3. One subcomponent in this electric motor is also used in two other products manufactured by ABC. ABC’s president has told you that the company expects to use 5,400 (annual quantity = AQ) of these subcomponents during the next 12 months, with a consistent demand for them month-to-month (and a consistent demand during each month, with the business day daily demand, DQ, being 22). He has further told you that it costs $10 to place an order (order cost = OC) for this subcomponent (regardless of the quantity ordered), that the annual holding cost is $2 per unit (unit holding cost = UHC). Finally, he has stated that out of 21 business days per month, there is a five business day lead time (LT = 5) associated with ordering this subcomponent.
Provide the algebraic equation for the economic order quantity (EOQ, using AQ, OC, and UHC as variables).
Calculate and provide the numerical economic order quantity rounded to the closest whole number.
Question 4. Refer to the ABC Manufacturing scenario to complete the following:
Provide the algebraic equation for the reorder point (RP, using DQ and LT as variables).
Calculate and provide the numerical EOQ, rounded to the closest whole number.
Question 5. Historically, ABC has based its production on estimates from the company’s marketing manager. While that has generally been successful, you have decided you would like to factor in an operations management approach to estimating demand.
Describe the following forecasting methods. Provide the math associated with each method and identify the pros and cons of using it:
Simple moving average.
Weighted moving average.
Linear trend line.
Written communication: Written communication should be free of errors that detract from the overall message.
APA formatting: Any references and citations should be formatted according to APA (6th edition) style and formatting.
Font and font size: Times New Roman, 12-point.
You must proofread your paper. But do not strictly rely on your computer’s spell-checker and grammar-checker; failure to do so indicates a lack of effort on your part and you can expect your grade to suffer accordingly. Papers with numerous misspelled words and grammatical mistakes will be penalized. Read over your paper – in silence and then aloud – before handing it in and make corrections as necessary. Often it is advantageous to have a friend proofread your paper for obvious errors. Handwritten corrections are preferable to uncorrected mistakes.
Use a standard 10 to 12 point (10 to 12 characters per inch) typeface. Smaller or compressed type and papers with small margins or single-spacing are hard to read. It is better to let your essay run over the recommended number of pages than to try to compress it into fewer pages.
Likewise, large type, large margins, large indentations, triple-spacing, increased leading (space between lines), increased kerning (space between letters), and any other such attempts at “padding” to increase the length of a paper are unacceptable, wasteful of trees, and will not fool your professor.
The paper must be neatly formatted, double-spaced with a one-inch margin on the top, bottom, and sides of each page. When submitting hard copy, be sure to use white paper and print out using dark ink. If it is hard to read your essay, it will also be hard to follow your argument.
ADDITIONAL INSTRUCTIONS FOR THE CLASS
Discussion Questions (DQ)
Initial responses to the DQ should address all components of the questions asked, include a minimum of one scholarly source, and be at least 250 words.
Successful responses are substantive (i.e., add something new to the discussion, engage others in the discussion, well-developed idea) and include at least one scholarly source.
One or two sentence responses, simple statements of agreement or “good post,” and responses that are off-topic will not count as substantive. Substantive responses should be at least 150 words.
I encourage you to incorporate the readings from the week (as applicable) into your responses.
Your initial responses to the mandatory DQ do not count toward participation and are graded separately.
In addition to the DQ responses, you must post at least one reply to peers (or me) on three separate days, for a total of three replies.
Participation posts do not require a scholarly source/citation (unless you cite someone else’s work).
Part of your weekly participation includes viewing the weekly announcement and attesting to watching it in the comments. These announcements are made to ensure you understand everything that is due during the week.
APA Format and Writing Quality
Familiarize yourself with APA format and practice using it correctly. It is used for most writing assignments for your degree. Visit the Writing Center in the Student Success Center, under the Resources tab in LoudCloud for APA paper templates, citation examples, tips, etc. Points will be deducted for poor use of APA format or absence of APA format (if required).
Cite all sources of information! When in doubt, cite the source. Paraphrasing also requires a citation.
I highly recommend using the APA Publication Manual, 6th edition.
Use of Direct Quotes
I discourage overutilization of direct quotes in DQs and assignments at the Masters’ level and deduct points accordingly.
As Masters’ level students, it is important that you be able to critically analyze and interpret information from journal articles and other resources. Simply restating someone else’s words does not demonstrate an understanding of the content or critical analysis of the content.
It is best to paraphrase content and cite your source.
For assignments that need to be submitted to LopesWrite, please be sure you have received your report and Similarity Index (SI) percentage BEFORE you do a “final submit” to me.
Once you have received your report, please review it. This report will show you grammatical, punctuation, and spelling errors that can easily be fixed. Take the extra few minutes to review instead of getting counted off for these mistakes.
Review your similarities. Did you forget to cite something? Did you not paraphrase well enough? Is your paper made up of someone else’s thoughts more than your own?
Visit the Writing Center in the Student Success Center, under the Resources tab in LoudCloud for tips on improving your paper and SI score.
The university’s policy on late assignments is 10% penalty PER DAY LATE. This also applies to late DQ replies.
Please communicate with me if you anticipate having to submit an assignment late. I am happy to be flexible, with advance notice. We may be able to work out an extension based on extenuating circumstances.
If you do not communicate with me before submitting an assignment late, the GCU late policy will be in effect.
I do not accept assignments that are two or more weeks late unless we have worked out an extension.
As per policy, no assignments are accepted after the last day of class. Any assignment submitted after midnight on the last day of class will not be accepted for grading.
Communication is so very important. There are multiple ways to communicate with me:
Questions to Instructor Forum: This is a great place to ask course content or assignment questions. If you have a question, there is a good chance one of your peers does as well. This is a public forum for the class.
Individual Forum: This is a private forum to ask me questions or send me messages. This will be checked at least once every 24 hours.