Operations Management


You are required to submit Question 1 as a Word document and Question 2 as an Excel spreadsheet.
Question 1Reflect 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 (walmart.ca). 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.
a. What type of Customer Benefit Package (CBP) do you think Wal-Mart offers? Briefly describe your answer.
b. 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?
c. 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?
d. Identify and briefly present 4 preproduction and 4 postproduction services that may form part of Wal-Mart’s value chain.


Question 2Please answer the following questions in Excel.  You MUST include all formulas or you will receive “0” on that question. a. Compute a 5-period moving average forecast for December using the following actual data:
Period ActualJune 10July 20August 30September 40October 50November 60

b. 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 Forecast1 802 2023 2004 3005 3036 306

c. 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 Forecast2001 101 1202002 1342003 1352004 178

d. Using the linear trend equation method, calculate the forecasts for years 2015 and 2016 using the following data:
Year Demand 2010 100 2011 1052012 1072013 1102014 112



e. 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 Demand1 50 63 2 70 653 40 444 80 725 96 100
Bonus Points: Using the information in part (e), calculate the MAD and MAPE.

f. 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    ?