Maggie Jones Owns Jones Industrial Heating and Cooling Company That Sells and Installs Carrier Hvac

Instructions: Please see detailed instructions on Blackboard including submission format and the data

set in an Excel spreadsheet.

CASE SCENARIO:

Maggie Jones owns Jones Industrial Heating and Cooling Company that sells and installs Carrier HVAC

units for large industrial facilities. Each unit sells for $30,500 including installation. Maggie has several

operational issues as follows:

1. Her current method of making a judgement to forecast is not working. What forecasting

model would work best for her to plan 2019 inventory levels?

o Calculate a 3-period average

o Calculate Exponential Smoothing with a .09 alpha.

o Calculate the Mean Absolute Deviation for both forecasting models.

o Discuss which model is better and why?

2. She is unsure if her productivity is better using only full-time employees or a mix of full-time

and part-time?

o Calculate revenue dollars earned per labor dollar per month.

o Provide suggestions on how to improve, or what is the best mix of employee schedules?

3. How should she interpret the quality data that has been collected?

o Display the data in Pareto Chart format.

o Provide suggestions as to how to improve the top quality issues.

4. Her transportation costs are rising including the time her service personnel are in transit, but

she is unsure as to which location choice might be optimal?

o Calculate the Center of Gravity analysis for her business.

o Suggest if she should change her location or not?

Maggie has hired you as a consultant to provide operations management advice. She would like you to

prepare a report for her on the four issues above. She has provided an Excel spreadsheet of data which