OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9780077835439
Author: Roger G Schroeder, M. Johnny Rungtusanatham, Susan Meyer Goldstein
Publisher: McGraw-Hill Education
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Chapter 10, Problem 13P
The Easyfit tire store had demand for tires shown below. Assume F1 = 198.
- a. Develop a spreadsheet using the first seven days of demand to determine the best exponential smoothing model for values of α = .2, α = .3, and α = .4. Select the model with the smallest absolute deviation for seven periods.
- b. Develop another spreadsheet using the second seven days to compare the best exponential smoothing model found in part a with a three-period moving-average model. Compare the predictions on the basis of the total absolute deviation.
- c. What principles does this problem illustrate?
| Day | Demand | Day | Demand |
| 1 | 200 | 8 | 208 |
| 2 | 209 | 9 | 186 |
| 3 | 215 | 10 | 193 |
| 4 | 180 | 11 | 197 |
| 5 | 190 | 12 | 188 |
| 6 | 195 | 13 | 191 |
| 7 | 200 | 14 | 196 |
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1
The data below represents the quarterly changes in demand for a product over the
next 3 months.
Quarter
Demand
Quarter
Demand
Quarter
Demand
1
120
5
164
9.
180
158
155
10
199
3
164
7
158
11
172
4
160
8.
163
12
170
Apply the following forecasting techniques of the data to estimate the demand in
period 13:
a. Regression;
b. Moving average with base m=3;
c. Exponential smoothing with a = 0.1.
4
Chapter 10 Solutions
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
Ch. 10.S - Ace Hardware sells spare parts for lawn mowers....Ch. 10.S - eXcel The daily demand for chocolate donuts from...Ch. 10.S - The SureGrip Tire Company produces tires of...Ch. 10.S - eXcelManagement believes there is a seasonal...Ch. 10.S - Management of the ABC Floral Shop believes that...Ch. 10 - Prob. 1DQCh. 10 - What is the distinction between forecasting and...Ch. 10 - Qualitative forecasting methods should be used...Ch. 10 - Describe the uses of qualitative, time-series, and...Ch. 10 - Qualitative forecasts and causal forecasts are not...
Ch. 10 - Prob. 6DQCh. 10 - What are the advantages of exponential smoothing...Ch. 10 - How should the choice of be made for exponential...Ch. 10 - Prob. 9DQCh. 10 - Prob. 10DQCh. 10 - Explain how CPFR can be used to reduce forecasting...Ch. 10 - Under what circumstances might CPFR be useful, and...Ch. 10 - Daily demand for marigold flowers at a large...Ch. 10 - The number of daily calls for the repair of Speedy...Ch. 10 - 3-The ABC Floral Shop sold the following number of...Ch. 10 - The Handy Dandy Department Store had forecast...Ch. 10 - 5-The Yummy Ice Cream Company uses the exponential...Ch. 10 - Using the data in problem 2, prepare exponentially...Ch. 10 - Compute the errors of bias and absolute deviation...Ch. 10 - eXcel At the ABC Floral Shop, an argument...Ch. 10 - Only a portion of the following table for...Ch. 10 - A candy store has sold the following number of...Ch. 10 - eXcel A grocery store sells the following number...Ch. 10 - Prob. 12PCh. 10 - The Easyfit tire store had demand for tires shown...Ch. 10 - Prob. 14P
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