Mba 603

Geneva Business School

Geneva Business School

Master of Business Administration

MBA 603

Operations Management for Masters

Adel Abu Madi - 781

Study Materials

(March 2016)

Video Case Study: Al Baik

* Does Al Baik produce a good or a service?

Answer : Service

* How does the Broasting process affect Al Baik’s productivity?

Answer: By Use low capacity frying pans

* Who are Al Baik’s main competitors?

Answer : KFC, Broasting Shop , Fast Food

* How does Al Baik differentiate itself from its competitors?

Answer :

* Meet customer expectation.

* Quality

* Low Price

PRACTICAL EXERCISES

1) Sales of Vimto for six months in Saudi Arabia are shown below:

January | February | March | April | May | June |

30000 | 40000 | 35000 | 55000 | 50500 | 70500 |

Using Moving Average, what is the demand prediction for July?

Answer: Moving average = (55000+50500+70500) /3 = 58666.6

What might account for the large increase in the month of June?

Answer: Ramadan Season

How does the Hijri calendar impact the forecasting above?

Answer: By Seasonable peaks due Ramadan and Eid’s

How accurate do you think the moving average calculated above for July is?

Answer: The forecast will not be accurate

How would you use a weighted moving average to improve the accuracy of the forecast for July?

Answer: By decrease the weigh.

2) Forecasting Exercise (Seasonal Average)

1. Calculate the seasonal Index for each month.

Answer 2-1:

  | Year 1 | Year 2 | Year 3 | Average Demand | TAD | Seasonal Index |

Jan | 80 | 85 | 105 | 90 | 94 | 0.957 |

Feb | 70 | 85 | 85 | 80 | 94 | 0.851 |

Mar | 80 | 93 | 82 | 85 | 94 | 0.904 |

Apr | 90 | 95 | 115 | 100 | 94 | 1.064 |

May | 113 | 125 | 131 | 123 | 94 | 1.309 |

Jun | 110 | 115 | 120 | 115 | 94 | 1.223 |

Jul | 100 | 102 | 113 | 105 | 94 | 1.117 |

Aug | 88 | 102 | 110 | 100 | 94 | 1.064 |

Sep | 85 | 90 | 95 | 90 | 94 | 0.957 |

Oct | 77 | 78...