09 Aug Njosh
Because using spreadsheet software is a basic business skill, the assignments are intended to give you practice in structuring problems as well as simply finding the answers. All problems must be solved using Excel formulas to receive credit. If, for example, you solve a problem on paper and then copy the results to Excel, you will receive no credit for that problem.
Question Set 1.
You are in charge of quality control for computer monitors at Dell. You have data on twenty-five batches of monitors, tracking five types of screen defects: brightness, resolution, color, dead pixels, and stuck pixels. These data are given in the table below.
1. For each defect type, find the average number of defects per batch. So, you should have an average defect rate for displays, another for color, and so on. (2pts)
2. For each batch, find the total number of defects (the sum of all five types). So, you should have one number for batch 1, another for batch 2, and so on. (2pts)
3. Sort the five columns of defects by descending average defect rate. The lowest rate should be on the right. (4pts)
4. Sort the batches by descending total defects. The batch with the highest total should be at the top. This will not affect the column sorting from the question 1.3 above. (4pts)
5. Create a Pareto chart showing the average defect rate for each of the five defect types. This will be a column chart, in descending left-to-right order, with each column and the axes labeled. (8pts)
| Defects | |||||
| Batch | Brightness | Resolution | Color | Dead Pixels | Stuck Pixels |
| 1 | 1 | 1 | 0 | 0 | 3 |
| 2 | 2 | 2 | 0 | 0 | 3 |
| 3 | 3 | 1 | 3 | 1 | 1 |
| 4 | 3 | 0 | 0 | 2 | 2 |
| 5 | 3 | 0 | 1 | 2 | 3 |
| 6 | 1 | 3 | 0 | 0 | 1 |
| 7 | 3 | 3 | 1 | 2 | 2 |
| 8 | 1 | 1 | 0 | 0 | 2 |
| 9 | 0 | 1 | 0 | 3 | 0 |
| 10 | 2 | 1 | 2 | 0 | 0 |
| 11 | 2 | 2 | 1 | 3 | 2 |
| 12 | 1 | 1 | 2 | 2 | 0 |
| 13 | 1 | 2 | 1 | 0 | 0 |
| 14 | 2 | 1 | 0 | 1 | 0 |
| 15 | 1 | 0 | 0 | 2 | 0 |
| 16 | 0 | 1 | 1 | 3 | 1 |
| 17 | 1 | 2 | 0 | 0 | 1 |
| 18 | 3 | 3 | 0 | 2 | 2 |
| 19 | 1 | 0 | 3 | 0 | 3 |
| 20 | 2 | 1 | 2 | 0 | 0 |
| 21 | 1 | 3 | 0 | 3 | 0 |
| 22 | 2 | 3 | 0 | 0 | 2 |
| 23 | 1 | 2 | 1 | 3 | 0 |
| 24 | 0 | 3 | 2 | 0 | 0 |
| 25 | 0 | 4 | 2 | 1 | 0 |
Question Set 2.
A manufacturing operation must periodically purchase bulk quantities of bolts. The bolts are purchased in boxes of 550 and are consumed at a constant rate. The operation expects to purchase 27,000 boxes over the coming year. Each box costs $160, the annual holding cost per box is $21, and the cost of placing an order is $170 (regardless of the quantity ordered). For the following questions, use the basic economic order quantity model (without quantity discounts).
1. What is the economic order quantity (in boxes)? (2pts)
2. Calculate the annual inventory holding costs based on the average inventory level and annual holding cost per box. (2pts)
3. Calculate the annual inventory ordering costs based on the number of orders expected to be placed during the coming year. (2pts)
4. Create a data table showing the total inventory costs (only) for order quantities varying from 100 to 1050 (use a step size of 50). You must use a data table structure to receive full credit for this problem. If you have any doubt as to what a data table is, please ask your lab TA. (8pts)
5. Create a scatter chart (use the one with markers and smooth lines) showing how total inventory costs are a function of the order quantity. Be sure to label your axes appropriately. (6pts)
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