Operations management on Wall mart

    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 (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 2 Please answer the following questions in Excel. Make sure to include all formulas. a. 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 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 Forecast 1 80 2 202 3 200 4 300 5 303 6 306 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 Forecast 2001 101 120 2002 134 2003 135 2004 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 105 2012 107 2013 110 2014 112 Bonus points: Calculate R2 using the above information. What does the result tell you about the data? 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 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. 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 ? g. 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? h. Using the appropriate formula, calculate the Value of a Loyal Customer using the following data: Customer purchasing pattern: One unit every 5 years Price of unit paid by customer: $200 Gross margin per unit: 70% Customer retention rate: 40%