The annual demand for anautomobile part is 3200 units.The unit cost is 60 OMR andinventory carrying charge is25% of unit cost. Ordering costis 20 OMR per order.(i) Determine the economicorder point(ii) If you place an order for 110units every time, is it profit orloss? How much and Why?(iii) Why demand forecastingis important for anorganization? Comparequalitative and quantitativeforecasting technique with anexample.

The formulas used for calculating the sum are: EOQ = 2 x Annual Demand x Ordering CostCarrying…

Answered: The annual demand for an automobile…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The following table shows the actual demand observed over the last 11 years: Year Demand 1 7 Year Forecast 2 8 2 3 4 3 4 10 4 Using exponential smoothing with a = 0.30 and a forecast for year 1 of 6.0, provide the forecast from periods 2 through 12 (round your responses to one decimal place). 3 2 4 5 6 T 8 9 Year 1 Forecast 6.0 Provide the forecast from periods 2 through 12 using the naive approach (enter your responses as whole numbers) 5 12 5 6 7 6 7 8 11 14 7 8 9 10 9 10 10 10 13 11 11 11 8 12 12
Among these trend patterns, within the projection methods, choose the one that is most common when analyzing demand, and why?-Secular trend -Seasonal variation -Cyclical fluctuations -Irregular movements
2) A manager has prepared a forecast of expected aggregate demand. Develop an aggregate plan that assumes: A level production rate, back orders are allowed and are charged at the rate of $15 per unit per month, inventory holding costs are $2 per unit per month in average inventory, regular time cost is $7 per unit and beginning inventory is zero. Show the aggregate plan and determine the cost of this plan. (use excel to show formulas for your calculations) Month Forecast 270 2 310 280 4 350 310 280
Prepare a graph of the monthly forecasts and average forecast demand for Chicago Paint Corp., a manufacturer of specialized paint for artists. Compute the demand per day for each month (round your responses to one decimal place). Month January February March April May June July August September October November December Choose the correct graph of the forecast demands below. OA Production Days 2222222222 23 19 20 21 20 23 21 20 19 Demand Forecast 950 1,050 1,250 1,350 1,300 1,300 1,250 1,150 1,050 1,000 1,000 950 Demand per Day 325
whic ah of the following pertains to an efficient supply chain? it deals with innovative products the product life cycle will be short it is worthwhile to invest in good forecasting systems all of the above
I'm trying to determine optimal order quantity but only have a Mean forecast and a standard deviation of it to use for sales data. How would I determine the sales data to use in the optimal order quantity formula?
A manager uses a trend equation plus quarterly relatives to predict demand. Quarter relatives are SR₁ = 0.9, SR₂ = 0.95, SR3 = 1.05, and SR₁ =1.1, The trend equation is: Fr=9+ 41. Over the past nine quarters, demand has been as follows: Period, t: Demand: Click here for the Excel Data File Compute the MAD and tracking signal for each period. (Negative values should be indicated by a minus sign. Round your intermediate calculations and final answers to 3 decimal places.) Period, t 1 2 3 4 5 6 7 1 2 3 4 5 6 7 В 9 14 18 20 22 28 30 36 42 45 89 Demand 14 18 20 22 28 30 36 42 45 MAD Tracking signal
Please help with the correct answers in details: Centerville Bikes and Stuff (CBS) sells motorcycles and accessories. The number of helmets sold by CBS per week for the past six weeks follows. Week 1 2 3 4 5 6 Value 19 14 17 12 18 15 a) Develop the three-week moving average for this time series. (Round your answers to two decimal places.) Week Time SeriesValue Forecast 1 19 2 14 3 17 4 12 5 18 6 15 What is Compute MSE? (Round your answer to two decimal places.) MSE = ? What is the forecast for week 7? b) Use ? = 0.2 to compute the exponential smoothing values for the time series. Week Time SeriesValue Forecast 1 19 2 14 3 17 4 12 5 18 6 15 What is Compute MSE. (Round your answer to two decimal places.) MSE = ? What is the forecast for week 7? (Round your answer to two decimal places.) c) Use ? = 0.4 to compute the exponential smoothing values for the time series. Week Time SeriesValue Forecast 1…
Discuss the importance of accurate forecasts in supply chain management.
The demand data for Double T Computer Services appears below. The company wants you to forecast the demand for period 4. What is your forecast using the least squares method? Period Demand 1 37 2 40 3 40
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UltraPure used two different techniques (F1 and F2) to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are in the table below. PREDICTED DEMAND Period Demand F1 F2 1 68 67 60 2 75 67 67 3 70 71 70 4 74 69 72 5 69 71 77 6 72 70 77 7 80 72 75 8 78 75 83 a. Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answers to 2 decimal places.)

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