2) A manager has prepared a forecast of expected aggregate demand. Develop an aggregate planthat 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 anddetermine the cost of this plan. (use excel to show formulas for your calculations)MonthForecast27023102804350310280

For level production planProduction per Month = (Sum of the total forecast for all period –…

Answered: 2) A manager has prepared a forecast of…

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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1. With examples and necessary figures, define the Key Inventory Terms ? 2. Suppose, you are newly appointed as a Sales Manager in Unilever Company and after joining your first assignment is to do the sales forecast for the next quarter. Therefore, explain what would be your approach to do a good sales forecast for the next quarter.
With the aid of practical examples demonstrate how qualitative, time-series, and causal forecasts can be used in Industry to forecast demand?
Please solve this question...
Demand at Nature Trails Ski Resort has a seasonal pattern.Demand is highest during the winter, as this is the peak ski season.However, there is some ski demand in the spring and even fallmonths. Th e summer months can also be busy as visitors oft encome for summer vacation to go hiking on the mountain trails.Th e owner of Nature Trails would like to make a forecast for eachseason of the next year. Total annual demand has been estimatedat 4000 visitors. Given the last two years of historical data, what isthe forecast for each season of the next year?
Prepare a Demand Forecast for “Year 5” using Excel. Quarterly Data for Cars Sales Yt Year Quarter Sales (1000s) Year 1 1 4.80 2 4.10 3 6.00 4 6.50 Year 2 1 5.80 2 5.20 3 6.80 4 7.40 Year 3 1 6.00 2 5.60 3 7.50 4 7.80 Year 4 1 6.30 2 5.90 3 8.00 4 8.40 Year 5 1 2 3 4
1. Katherine is a forecast manager. She used exponential smoothing to forecast her sales with alpha equals 0.25. Her forecast for this week was 161 but the actual number is 232. What is her forecast for next week?2. Blue Pad Companyâ€™s lead time L is1week and demand rate is119units per week.Holding cost is $29 per unit and ordering cost is $281. Assume 52 weeks in a year.What is the EOQ? Keep two decimal points!3.Blue Pad Companyâ€™s lead time L is3week and demand rate is123units per week.Holding cost is $70 per unit and ordering cost is $726. Assume 52 weeks in a year.What is the ROP?4. Lugini Watchâ€™s annual demand is 107. It can produce at a rate of 19 watches per month with a $249 setup cost for the production run. Find the order quantity (EPQ) assuming carrying cost is $57 per unit a year. Keep two decimal points!5. Lugini Watchâ€™s annual demand is 108. It can produce at a rate of 24 watches per month. Using the…
7. Nowjuice, Inc., produces Shakewell fruit juice. A planner has developed an aggregate forecast for demand (in cases) for the next six months. Month May Jun Jul Forecast 4,000 4,800 5,600 Aug Sep 7,200 Oct 6,400 5,000 Use the following information to develop aggregate plans. Regular production cost Regular production capacity Overtime production cost Subcontracting cost Holding cost Beginning inventory $10 per case 5,000 cases $16 per case $20 per case $1 per case per month 0 Develop an aggregate plan using each of the following guidelines and compute the total cost for each plan. Which plan has the lowest total cost? a. Use level production. Supplement using overtime as needed. b. Use a combination of overtime (500 cases per period maximum), inventory, and subcontracting (500 cases per period maximum) to handle variations in demand. c. Use overtime up to 750 cases per period and inventory to handle variations in demand.
Explain the differences between demand planning,demand forecasting and demand management.
The options Outlook has for handling the seasonality of magazine are adding workers during the peak season, subcontracting out some of the work, building up inventory during the slow months, or building up a backlog of orders that will be delivered late to customers. To determine how to best use these options through an aggregate plan, Outlook`s vice president of Marketing starts with the first task-building a demand forecast. Although Outlook could attempt to forecast this demand itself, a much more accurate forecast comes from a collaborative process used by both Outlook and its retailers to produce the forecast shown in Table (a). Outlook sells each book through retailers for Rs.40. The company has a starting inventory in January of 1000 books. At the beginning of January the company has a workforce of 80 employees. The company has a total of 20 working days in each month, and each employee earns Rs 4 per hour regular time. Each employee works eight hours per day on straight time…
Assume an initial starting Ft of 200 units, a trend (Tt ) of 8 units, an alpha of 0.30, and a delta of 0.40. If actual demand turned out to be 288, calculate the forecast including trend for the next period.

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