POM - QM

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POM - QM FOR WINDOWSVersion 3Software for Decision Sciences:Quantitative Methods,Production and Operations ManagementHoward J. June 30, 2005Revised October 31, 2005Copyright (c) 2006 by Pearson Education, Inc., Upper Saddle River, New Jersey, 07458.Pearson Prentice Hall. All rights reserved.

Table of ContentsChapter 1: IntroductionOverview.1Hardware and Software Requirements .3Installing the Software .4The Program Group .5Starting the Program .6The Main Screen .7Chapter 2: A Sample ProblemIntroduction.12Creating a New Problem .13The Data Screen .15Entering and Editing Data.15The Solution Screen .17Chapter 3: The Main MenuFile .19Edit .25View .26Module .27Format .28Tools.30Window.31Help.32Chapter 4: PrintingThe Print Setup Screen.37Information to Print.38Page Header Information .39Page Layout.40Printer Options .41v

POM-QM for WindowsChapter 5: GraphsIntroduction.43File Saving .44Print.44Colors and Fonts .45Chapter 6: ModulesOverview.45Aggregate (Production) Planning.46Assembly Line Balancing/Line Balancing .57The Assignment Model.65Breakeven/Cost-Volume Analysis.67Capital Investment/Financial Analysis .71Decision Analysis .73Forecasting .84Game Theory.99Goal Programming .102Integer and Mixed Integer Programming.106Inventory .109Job Shop Scheduling (Sequencing)/Scheduling .117Layout/Process Layout.127Learning (Experience) Curves .131Linear Programming .134Location .140Lot Sizing.146Markov Analysis .151Material Requirements Planning/Resource Planning .155Networks .162Productivity.166Project Management .167Quality Control/Process Performance and Quality.176Reliability.183Simulation .186Statistics .189The Transportation Model .194Waiting Lines.198Work Measurement/Measuring Output Rates.207AppendicesA. Customization due to textbook .211B. Useful hints for modules .212vi

PrefaceIt is hard to believe that POM-QM for Windows (formerly DS for Windows) has been inexistence, first as a DOS program and then as a Windows program, for more than 15 years. Itseems as if people have been using both minicomputers and Windows forever but, in fact,large-scale Windows usage has occurred for less than a decade. At the time that I finished theoriginal DOS version, few students had personal computers or knew what an Internet serviceprovider (ISP) was. Today, the large majority of students have their own computers, whichmakes this software even more valuable than it has ever been.The original goal in developing this software was to provide students with the most userfriendly package available for production/operations management, quantitative methods,management science, and operations research. We are gratified by the response to the fourprevious DOS versions and two previous Windows versions of POM-QM for Windows,indicating that we have clearly met our goal.The first version of this software was a DOS version published in 1989 as PC-POM.Subsequent DOS versions were titled AB:POM. The first Windows version, QM for Windows(Version 1.0), was distributed in the summer of 1996 whereas a separate but similar program,POM for Windows (Version 1.1), was first distributed in the fall of 1996. DS for Windows,which contained all of the modules in both POM and QM and also came with a printedmanual, was first distributed in 1997. Version 2 of all three programs was created forWindows 95 and distributed in the fall of 1999.For this new version, Version 3, we have collapsed the three former Windows products intoone product named POM-QM for Windows. For consistency with past versions, when usingPrentice Hall texts it is possible to install the program as POM for Windows or QM forWindows and to display the POM for Windows or QM for Windows module menu.Regardless of the name of the desktop icon, all of the modules are available to all users. Wewill refer to the product as POM-QM for Windows throughout this manual.vii

POM-QM for WindowsThis is a package that can be used to supplement any textbook in the broad area known asDecision Sciences. This includes Production and Operations Management, QuantitativeMethods, Management Science, or Operations Research.Following is a summary of the major changes included in Version 3. These changes fall intothree categories: module enhancements, functionality, and user friendliness.Module EnhancementsIn the aggregate planning module, we have added a model to create and solve atransportation model of aggregate planning. For assembly-line balancing, we have added adisplay that summarizes the minimum number of stations necessary when using each of theavailable methods. For decision tables, we have added an output display for various values ofalpha when computing the Hurwicz value. Our most exciting new addition is that in decisionanalysis we now have an easy-to-use graphical user interface to create the decision tree. Inaddition, we have added a new model for creating decision tables for one-period inventory(supply/demand) problems. In forecasting, we have added a model that allows the user toenter the forecasts in order to run an error analysis. In addition, we have added the MAPE asstandard output for all models and added forecast control with computation of the trackingsignal. In inventory, we have added the reorder point models for both normal and discretedemand distributions. In job shop scheduling, for one-machine sequencing we have allowedfor inclusion of the dates that jobs are received and we have added a display that summarizesthe results when using all of the methods. In location, we have added a location cost-volume(breakeven) analysis model. In linear programming we display the input in equation form onthe right side of the table and have added an output that has the dual model of the originalproblem. It is also now possible to print the corner points of a graph. In project management,we display the critical path in red. In quality control, it is now possible to set the center linein the control charts rather than using the mean of the data. We have extended our statisticsmodel to include computations for a list of data, a frequency table, or a probabilitydistribution as well as adding a normal distribution model.FunctionalityThe formatting and printing options have been improved. It is now possible to format thedecimal displays on both the screen and printouts. The right-click options on tables andgraphs have been enhanced so that it is now possible to easily copy, print, or save graphs. Wehave added menu items for inserting multiple columns and multiple rows. When printing, it ispossible to select individual graphs to print rather than having to print all of the availablegraphs. The annotation option has been improved. The Save as Excel option has beenviii

expanded to include nearly all of the models. The Windows calculator will be used whenfound rather than the more primitive calculator that is included with the software. Scroll barshave been added to the forecasting, learning curve and operating characteristic graphs inorder to easily display the changes in the graphs as a function of the model parameters.User FriendlinessAs mentioned previously, we have combined all three packages into one package in orderthat all models will be available to the students – especially students who take both anOperations Management course and a Quantitative Methods course. We still allow forstudent choice of the menu (POM, QM, or both) to minimize confusion. In addition, in orderto improve the understanding of the models we have added separators between models in themodel submenu selection menu. We have combined integer and mixed integer programminginto one module. We have added an overview tab to the problem creation screen to helpdescribe the options that are available. Manuals (this document) in PDF and Word formathave been added so that users may easily access the manual while running the program orprint selected pages from the manual. Tutorials that walk you through certain operations stepby-step are included in the Help menu. The examples used in this manual are included in theinstallation. More user customization options are available in the User Preferences sectionunder the Help menu.To the students who use this software, I hope you find that this software complements yourtext well. To the instructors who use this software, thank you for choosing POM-QM forWindows. I welcome your comments, especially by e-mail at dsSoftware@prenhall.com.ix

POM-QM for WindowsAcknowledgmentsThe development of any large scale project such as POM-QM for Windows requiresthe assistance of many people. I have been very fortunate in gaining the support andadvice of students and colleagues from around the globe. Without their help, POMQM for Windows would not have been as successful as it has been.In particular, though I would like to thank the students in Barry Render’s classes atRollins College and the students in my classes at Temple University. These studentshave always been the first to see the new versions, and over the years several studentshave offered design features that were incorporated into the software. Other designfeatures were developed in response to comments sent to me from users of the DOSversions and Windows versions 1 and 2. I am extremely grateful for these comments;they have immensely helped the evolution and continuous improvement of POM-QMfor Windows.Several changes in the software were put into place in version 3 as a result of thecomments of Philip Entwistle, Northampton Business School. The original version ofthe POM for Windows and QM for Windows software was reviewed by Dave Penticoof Duquesne University, Laurence J. Moore of Virginia Polytechnic Institute andState University, Raesh G. Soni of Indiana University of Pennsylvania, Donald G.Sluti of the University of Nebraska at Kearney, Nagraj Balachandran of ClemsonUniversity, Jack Powell of the University of South Dakota, Sam Roy of MoreheadState University, and Lee Volet of Troy State University. Their comments were veryinfluential in the design of the software that has been carried over to the new version.In addition, other professors who have contributed to this software include SriSridharan of Clemson University, Forrest (Fess) Green of Radford University, John E.Nicolay Jr. of the University of Minnesota, Bill Smith of Troy State University,Robert A. Donnel of Goldey-Beacom College, Dave Anstett of the College of St.Scholastica, Leonard Yarbrough of Grand View College, and Cheryl Dale and SteveMoss. Madeline Thinness of Utah State University provided an extensive review ofversion 2 of the software.x

Discussions with Fred Murphy and the late Carl Harris have been very useful to me,especially in the mathematical programming and queueing modules.There are several individuals at Prentice Hall to whom I must give special thanks.Rich Wohl and Tom Tucker are the editors with whom I had worked on this projectfor the first six versions. Not all editors have their keen understanding of computers,software, texts, students, and professors. Without this understanding and vision,POM-QM for Windows would still be a vision rather than a reality. My currenteditors, Alana Bradley and Mark Pfaltzgraf, have been instrumental in getting thisversion to market. Fellow Prentice Hall authors, including Jay Heizer, Barry Render,Ralph Stair, and Chuck Taylor have helped me to develop the DOS versions and tomake the transition from the DOS product to the current Windows products and toimprove the Windows product. I am grateful for their many suggestions and the factthat they chose my software as the software to accompany their texts. The support,encouragement, and help from all of these people are very much appreciated. NancyWelcher provides the support of the Prentice Hall Web pages that are maintained formy products. Finally, I would like to express my appreciation to Debbie Clare whohas been the marketing manager for my software.As always, I must express my appreciation and love to my wife, Lucia, for herunderstanding and support during the many hours that I have spent and continue tospend in front of my PC improving this software. In addition, I am grateful for thevaluable comments and suggestions regarding the look and feel of the software fromLucia and my children, Lisa and Ernie.xi

Chapter 1IntroductionOverviewWelcome to Prentice Hall’s Decision Science software package: POM-QM forWindows (also known as POM for Windows and QM for Windows). This package isthe most user-friendly software package available in the fields of production andoperations management, quantitative methods, management science, or operationsresearch. POM-QM for Windows has been designed to help you to better learn andunderstand these fields. The software can be used either to solve problems or to checkanswers that have been derived by hand. POM-QM for Windows contains a largenumber of models, and most of the homework problems in POM textbooks or QMtextbooks can be solved or approached using POM-QM for Windows.In this introduction and the next four chapters, the general features of the software aredescribed. You are encouraged to read them while running the software on yourcomputer. Chapter 6 contains the description of the specific models and applicationsavailable in POM-QM for Windows.You will find that the software is very user friendly as a result of the followingfeatures.StandardizationThe graphical user interface for the software is a standard Windows interface.Anyone familiar with any standard spreadsheet, word processor, orpresentation package in Windows easily will be able to use the software. Thisstandard interface includes the customary menu, toolbar, status bar, and helpfiles of Windows programs.Even though the software contains 29 modules and more than 60 submodels,the screens for every module are consistent, so, after you become accustomedto using one module, you will have an easy time with the other modules.1

POM-QM for WindowsFile storage and retrieval is simple. Files are opened and saved in the usualWindows fashion and, in addition, files are named by module, which makes iteasy to find previously saved files.Data and results, including graphs, can be easily copied and pasted betweenthis application and other Windows applications.FlexibilityThere are several preferences that the user can select from the Help, UserInformation menu. For example, the software can be set to automatically savea file after data has been entered or to automatically solve a problem after datahas been enteredThe menu of modules can be either a menu that lists only POM model, a menuthat list only QM models, or a menu that lists all available models.The user can select the desired output to print rather than having to printeverything. In addition, several print formatting options are available.The screen components and the colors can be customized by the user. This canbe particularly effective for overhead data shows.User-oriented designThe spreadsheet-type data editor makes data entry and editing extremely easy.In addition, whenever data is to be entered, there is a clear instruction given onthe screen describing what is to be entered. Also, when data is enteredincorrectly, a clear error message is displayed.It is easy to change from one solution method to another in order to comparemethods and answers. In several cases, this is simply a one-click operation. Inaddition, intermediate steps are generally available for display.The display has been color coded so that answers appear in a different colorfrom data.Textbook customizationThe software can be customized to Prentice Hall textbooks in order that themodels, notation, and displays will match the particular textbook.2

Chapter 1: IntroductionUser supportUpdates are available on the Internet through the Prentice Hall Web site forthis book, www.prenhall.com/weiss, and help is available by contactingdsSoftware@prenhall.com.What all of this means to you is that, with a minimal investment of time in learningthe basics of POM-QM for Windows, you will have an easy-to-use means of solvingproblems or checking your homework. Rather than being limited to looking at theanswers in the back of your textbook, you will be able to see the solutions for mostproblems. In many cases, the intermediate steps are displayed in order to help youcheck your work. In addition, you will have the capability to perform sensitivityanalysis on these problems or to solve bigger, more interesting problems.Hardware and Software RequirementsComputerThe software has minimal system requirements. It will run on any IBM PC compatiblePentium machine with at least 8 MB RAM and operating Windows 2000, WindowsNT, Windows ME, or Windows XP.Disk Drives/CD-ROMThe software is provided on a CD. This requires a CD-ROM drive.MonitorThe software has no special monitor requirements. Different colors are used to portraydifferent items, such as data and results. All messages, output, data, and so on willappear on any monitor. Regardless of the type of monitor you use, the software hasthe capability that allows you to customize colors, fonts and font sizes in the displayto your liking. This is extremely useful when using an overhead projection system.These options are explained in Chapter 3 in the section titled Format.PrinterA printer is not required to run the software but, of course, if you want a hard copy(printout), then it is necessary to have a printer attached. The printing is standard sothat no special features, characters, or printers are required. It also is possible to printto a file in order to import the printout into a word processor for further editing.3

POM-QM for WindowsTypographic conventions in this manual1. Boldface indicates something that you type or press.2. Brackets, [ ], name a key on the keyboard or a command button on the screen. Forexample [F1] means Function key F1, whereas [OK] means the “Okay” button on thescreen.3. [Return], [Enter], or [Return/Enter] indicate the key on your keyboard that hasone of those names. The name of the key varies on different keyboards and some evenhave both keys.4. Boldface and the capitalized first letter of a term refer to a Windows menucommand. For example, File refers to the menu command.5. All capitals refers to a toolbar command such as SOLVE.Installing the SoftwareIn the directions that follow, the hard drive is named C: and the CD-ROM is drive D:.The software is installed in the manner that most programs designed for Windows areinstalled. For all Windows installations, including this one, it is best to be certain thatno programs are running while you are installing a new one.Insert the CD with POM-QM for Windows in drive D:. After a little while, theinstallation program should begin automatically. If it does not, thena. From the Windows Start Button select, Run.b. Browse the CD for D:setup.pomqmv3.exe (case does not matter).c. Press [Enter] or click on [OK].Follow the setup instructions on the screen. Generally speaking, it is simply necessaryto click [NEXT] each time that the installation asks a question.Default values have been assigned in the setup program, but you may change them ifyou like. The default folder is C:\Program Files\POMQMV3.The setup program will ask you for registration information, such as your name,university, professor, and course. All items are optional except for the student/username that must be given. This name cannot be changed later! To change the otherinformation from within the program, use Help, User Information.4

Chapter 1: IntroductionIf you have the CD from the Operations Management, 8e textbook by Heizer andRender or the CD from the Operations Management, 8e textbook by Krajewski,Ritzman and Malhotra, the software will automatically be installed as POM forWindows and customized to the textbook. If you have the CD from QuantitativeAnalysis by Render, Stair and Hanna or the CD from Introduction to ManagementScience by Taylor, the software will automatically be installed as QM for Windows. Ifyou have the POM-QM for Windows CD rather than a CD from the back of yourtextbook you can customize the software to the textbooks by using Help, UserInformation.One option that the installation will question you about is whether you want to be ableto run the program by double clicking on the file name in File Explorer. If you say“yes”, then the program will associate the proper extensions with the program name.This is generally very useful.Please note that the software installs some files to the Windows system directory. Theinstallation will back up any files that are replaced if you select this option.If you see a message saying that something is wrong during installation and you havethe option of ignoring it, choose this option. The program will likely install properlyanyway. The message usually indicates that you are running a program or have run aprogram that shares a file with this software package. If you have any installation oroperation problems, the first place to check is the download page atwww.prenhall.com/weiss.Installing and Running on a NetworkWith the written permission of Prentice Hall, it is permissible to install the softwareto a network only if each student has purchased an individual copy of thesoftware. That is, each student must possess his or her own licensed copy of the CDin order to install the software on a network.The Program GroupThe installation will add a program group with four items to the Start Menu. Thenames of the items (POM, QM or POM-QM) depend on whether the CD is from theback of the textbook or is a stand-alone CD.5

POM-QM for WindowsHelp is available from within the program, but if you want to read some informationabout the program without starting it first, use the POM-QM for Windows 3 Helpicon.The program group contains one icon named Prentice Hall Web Site Gateway. If youhave an association for HTML files with a Web browser (e.g., Netscape or InternetExplorer), this document will point you to program updates.Finally, the software comes with a Normal Distribution Calculator. The calculator ison the Tools menu of the program but also can be used as a stand-alone programwithout having to open POM-QM for Windows.To uninstall the program use the usual Windows uninstall procedure (Start, Settings,Control Panel, Add/Remove Programs). The programs will be removed but the datafiles will not; they will have to be deleted using My Computer or File Explorer if youwish to do so.In addition to the Start menu, the installation will place a shortcut to the program onthe desktop. The icon appears as one of the three icons displayed below depending onthe exact CD being used. Whichever desktop icon has been installed is the icon thatcan be used to easily begin the program.Starting the ProgramThe easiest way to start the program is by double clicking the program icon that is onthe desktop. Alternatively, you may use the standard Windows means for starting theprogram. Click on Start, Programs, POM-QM for Windows 3, POM-QM forWindows 3 in order to use the software. After starting the program, a splash screenwill appear as follows.6

Chapter 1: IntroductionNameThe name of the licensee will appear in the display. This should be your name if youare running on a stand-alone computer or the network name if you are running on anetwork.Version NumberOne important piece of information is the version number of the software. In theexample, the version is 3.0 and this manual has been designed around that number.Although this is version 3.0 there is also detailed information about the programversion that can be found using Help, About (displayed at the end of Chapter 3). Inparticular, there is a build number. If you send e-mail asking for technical support,you should include the build number with the e-mail.Note: If the program has been registered as being in a public lab or on a network thenat this point the opening screen will change and give you the opportunity to enter yourname. This is useful when you print your results.The program will start in a couple of seconds after the opening display appears.The Main ScreenThe second screen that appears is an empty main menu screen. The first time that thisscreen appears, a Tip of the Day form will appear as displayed below. If you don’twant the Tip of the Day to appear each time, uncheck the box at the lower left of theform. If you change your mind later and want to see the Tip of the Day, go to theHelp menu.7

POM-QM for WindowsPlease notice the background in the middle of the screen. This is referred to as agradient. This gradient appears whenever the main screen is empty and it appears onother screens in the software. You may customize the display of the gradient by usingFormat, Colors as explained in Chapter 3.After closing the Tip of the Day, or if you have chosen not to see the tips, the nextscreen is the module selection screen (shown in Chapter 2). In order to display all ofthe screen components, the following screen shows a module and a loaded data file.8

Chapter 1: IntroductionThe top of the screen shows the standard Windows title bar for the window. At thebeginning the title is POM-QM for Windows (or POM for Windows or QM forWindows). If you are using a Prentice Hall text the names of the authors of the textsshould appear in this title bar at the beginning of the program as shown in the figureon the previous page. (If not, go to Help, User Information.) The title bar willchange to include the name of the file when a file is loaded or saved as shown above.On the left of the title bar is the standard Windows control box and on the right are thestandard minimize, maximize, and close buttons for the window-sizing options.Below the title bar is a bar that contains the main menu. The menu bar is veryconventional and should be easy to use. The details of the menu options of File, Edit,View, Module, Format, Tools, Window, and Help are explained in Chapter 3. At thebeginning of the program, the Edit option is not enabled, because there is no data toedit. The Window option is also disabled, because this refers to results windows andthere are as yet no results. Although the menu appears in the standard Windowsposition at the top of the screen, it can be moved if you like by clicking on the handleon the left and dragging the mouse.Below the menu is a standard toolbar (also called a button bar or ribbon). This toolbarcontains shortcuts for several of the most commonly used menu commands. If youmove the mouse over the tool for about two s

POM-QM for Windows x Acknowledgments The development of any large scale project such as POM-QM for Windows requires the assistance of many people. I have been very fortunate in gaining the support and advice of students and colleagues from around the globe. Without their help, POM-QM for

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