Question 1: Analyzing McDonald’s Competitive Priorities
McDonald’s primarily focuses on the competitive priorities of speed, consistency, and cost efficiency:
Speed: McDonald’s emphasizes quick service, evidenced by their fast food model which minimizes the time between ordering and receiving food.
Consistency: Across global locations, McDonald’s ensures that its food tastes the same, maintaining a standardized set of procedures for food preparation.
Cost Efficiency: By streamlining operations and using economies of scale, McDonald’s keeps its prices competitive, appealing to a broad customer base.
Question 2: Control Chart for New Trash Dump Site Opposition
To analyze the opposition data for the new trash dump site using a control chart, you would use a p-chart since the data represents proportions (number of opposed residents per 50 surveyed each week).
Steps:
Calculate the average proportion of opposed residents
𝑝
p and the standard deviation.
Determine the Upper Control Limit (UCL), Center Line (CL), and Lower Control Limit (LCL) using the formulas:
𝐶
𝐿
=
𝑝
CL=p
𝑈
𝐶
𝐿
=
𝑝
+
3
𝑝
(
1
−
𝑝
)
𝑛
UCL=p+3
n
p(1−p)
𝐿
𝐶
𝐿
=
𝑝
−
3
𝑝
(
1
−
𝑝
)
𝑛
LCL=p−3
n
p(1−p)
Plot the values and analyze whether any points fall outside the control limits to determine if there are any out-of-control signals.
Question 3: Forecasting Model Accuracy Using MAD
To determine which forecasting model is more accurate using the Mean Absolute Deviation (MAD):
Calculate the absolute deviations between actual values and forecasted values for each model.
Compute MAD for both models:
𝑀
𝐴
𝐷
=
1
𝑛
∑
∣
𝐴
𝑐
𝑡
𝑢
𝑎
𝑙
−
𝐹
𝑜
𝑟
𝑒
𝑐
𝑎
𝑠
𝑡
∣
MAD=
n
1
∑∣Actual−Forecast∣
The model with the lower MAD is more accurate.
Question 4: Performance of the Used Car Dealership Forecasting Model
Given the tracking signal data and UCL and LCL of +5 and -5:
Analyze the tracking signals to see if any values exceed these limits.
A tracking signal within these bounds indicates that the model’s forecast errors are within acceptable limits. If signals exceed these bounds, the model may need adjustments.
The data provided suggests that the dealership’s forecasting model might be veering towards inaccuracy, especially in the later months where the tracking signal exceeds +5, indicating a consistent overestimation or underestimation trend that needs addressing.