The Instant Paper Clip Supply Company sells and delivers office supplies to various companies, schools, and agencies within a 30-mile radius of its warehouse. The office supply business is extremely competitive, and the ability to deliver orders promptly is an important factor in getting new customers and keeping old ones. (Offices typically order not when their inventory of supplies is getting low but when they completely run out. As a result, they need their orders immediately.) The manager of the company wants to be certain that enough drivers and delivery vehicles are available so that orders can be delivered promptly. Therefore, the manager wants to be able to forecast the number of orders that will occur during the next month (i.e., to forecast the demand for deliveries). From records of delivery orders, the manager has accumulated data for the past 10 months. These data are shown in Table. Orders for 10-month period Month January February March Orders Delivered per Month 120 90 MA3 = 100 April 75 May 110 June 50 July 75 August 130 MA5 = September 110 October 90 November 3 ΣDi i-1 3 5 ΣDi i=1 5 Weighted moving average Compute the weighted average forecast using the following weigts: 0.3, 0.2, 0.4, and 0.1 For example, if the Instant Paper Clip Supply Company wants to compute a 3-month weighted moving average with a weight of 50% for the October data, a weight of 33% for the September data, and a weight of 17% for August: WMA, = W;D; where Wi = the weight for period i, between 0% and 100% (i.e., between 0 and 1.0) ΣW; = 1.00 WMA = What is the 3-month weighted moving average taking into consideration above weights assigned Your answer =>
The Instant Paper Clip Supply Company sells and delivers office supplies to various companies, schools, and agencies within a 30-mile radius of its warehouse. The office supply business is extremely competitive, and the ability to deliver orders promptly is an important factor in getting new customers and keeping old ones. (Offices typically order not when their inventory of supplies is getting low but when they completely run out. As a result, they need their orders immediately.) The manager of the company wants to be certain that enough drivers and delivery vehicles are available so that orders can be delivered promptly. Therefore, the manager wants to be able to forecast the number of orders that will occur during the next month (i.e., to forecast the demand for deliveries). From records of delivery orders, the manager has accumulated data for the past 10 months. These data are shown in Table. Orders for 10-month period Month January February March Orders Delivered per Month 120 90 MA3 = 100 April 75 May 110 June 50 July 75 August 130 MA5 = September 110 October 90 November 3 ΣDi i-1 3 5 ΣDi i=1 5 Weighted moving average Compute the weighted average forecast using the following weigts: 0.3, 0.2, 0.4, and 0.1 For example, if the Instant Paper Clip Supply Company wants to compute a 3-month weighted moving average with a weight of 50% for the October data, a weight of 33% for the September data, and a weight of 17% for August: WMA, = W;D; where Wi = the weight for period i, between 0% and 100% (i.e., between 0 and 1.0) ΣW; = 1.00 WMA = What is the 3-month weighted moving average taking into consideration above weights assigned Your answer =>
Operations Research : Applications and Algorithms
4th Edition
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Wayne L. Winston
Chapter23: Simulation With The Excel Add-in @risk
Section23.1: Introduction To @risk: The News Vendor Problem
Problem 4P
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Transcribed Image Text:The Instant Paper Clip Supply Company sells and delivers office supplies to various companies,
schools, and agencies within a 30-mile radius of its warehouse. The office supply business is extremely
competitive, and the ability to deliver orders promptly is an important factor in getting
new customers and keeping old ones. (Offices typically order not when their inventory of supplies
is getting low but when they completely run out. As a result, they need their orders immediately.)
The manager of the company wants to be certain that enough drivers and delivery
vehicles are available so that orders can be delivered promptly. Therefore, the manager wants to
be able to forecast the number of orders that will occur during the next month (i.e., to forecast
the demand for deliveries).
From records of delivery orders, the manager has accumulated data for the past 10 months.
These data are shown in Table.
Orders for 10-month period
Month
January
February
March
Orders Delivered per Month
120
90
MA3
=
100
April
75
May
110
June
50
July
75
August
130
MA5
=
September
110
October
90
November
3
ΣDi
i-1
3
5
ΣDi
i=1
5
Transcribed Image Text:Weighted moving average
Compute the weighted average forecast using the following weigts: 0.3, 0.2, 0.4, and 0.1
For example, if the Instant Paper Clip Supply Company wants to compute a 3-month
weighted moving average with a weight of 50% for the October data, a weight of 33% for the
September data, and a weight of 17% for August:
WMA, = W;D;
where
Wi = the weight for period i, between 0% and 100% (i.e., between 0
and 1.0)
ΣW; = 1.00
WMA =
What is the 3-month weighted moving average taking into consideration
above weights assigned
Your answer =>
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