Assignment 1 BUSI 3308

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 Assignment 1 BUSI 3308

Section 2

Due: September 27 by 6:00pm

You are required to submit Question 1 as a Word document and Question 2 as an Excel spreadsheet.

Please submit both files together to Moodle before the above due date and time. This assignment is

worth 10%

Question 1

Reflect on what you know about Wal-Mart, which is considered one of the world’s largest retailers. It

may also be helpful to review their website ( Think about the variety and number of

products and services offered, checkout lines, store locations, shipping and delivery, etc., and answer

the following four questions.

  1. What type of Customer Benefit Package (CBP) do you think Wal-Mart offers? Briefly describe

your answer.

  1. Choose any three key activities that operation managers perform on page 4 of your textbook.

How might they relate to Wal-Mart’s operations processes?

  1. A critical component of Wal-Mart’s operations management includes their i.

warehouse/distribution center’s locations and ii. retail locations. What process-thinking

variables do you think Wal-Mart needs to take into consideration when deciding on each of

those location types?

  1. Identify and briefly present 4 preproduction and 4 postproduction services that may form part

of Wal-Mart’s value chain.

Word count for Question 1: 550-700 words.

Make sure to use the correct sentence structure, grammar, and spelling.

Question 2

Please answer the following questions in Excel. Make sure to include all formulas.

  1. Compute a 5-period moving average forecast for December using the following actual data:

Period Actual

June 10

July 20

August 30

September 40

October 50

November 60

  1. Using the following data, use a smoothing constant of 0.2 and determine the adjusted forecast

for period 7 by applying simple exponential smoothing.

Period Actual Forecast

1 80

2 202

3 200

4 300

5 303

6 306

  1. Using the following data, use a smoothing constant of 0.5 and determine the adjusted forecast

for 2005 by applying simple exponential smoothing.

Period Actual Forecast Adjusted Forecast

2001 101 120

2002 134

2003 135

2004 178

  1. Using the linear trend equation method, calculate the forecasts for years 2015 and 2016 using

the following data:

Year Demand

2010 100

2011 105

2012 107

2013 110

2014 112

Bonus points: Calculate R2 using the above information. What does the result tell you about

the data?

  1. Car Inc. has presented you with the following information consisting of the forecasted demand

and actual sales for their latest sports car. Use the following information to calculate the mean

square error.

Period Forecasted Demand Actual Demand

1 50 63

2 70 65

3 40 44

4 80 72

5 96 100

Bonus Points: Using the information in part (e), calculate the MAD and MAPE.

  1. A local factory has been purchasing a particular spare part from a manufacturer in Alberta. In

order to better budget their financials, they want to know what is the likely per-unit price of the

spare part in 2018 based on previous prices.

Using y=a +bt, compute the forecasted price for 2018.

Year Price/Unit

2013 $3.24

2014 $3.25

2015 $3.65

2016 $3.60

2017 $3.88

2018 ?

  1. Company Y produces chocolate bars. The following data represents the production inputs and

chocolate outputs for Year 1 and Year 2.

Year 1 Year 2

Cost of Raw Materials $20,000 $41,000

Electricity Cost $6,000 $7,300

Labor $200,000 $412,000

Miscellaneous Input Costs $5,000 $7,000

Number of Chocolate Bars Produced 120,000 units 230,000 units

Using the above data, has productivity increased or decreased from Year 1 to Year 2?

  1. Using the appropriate formula, calculate the Value of a Loyal Customer using the following


Customer purchasing pattern: One unit every 5 years

Price of unit paid by customer: $200

Gross margin per unit: 70%

Customer retention rate: 40%ORDER NOW your custom paper to have it completed successfully on time.

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