OPERATIONS MANAGEMENT
2nd Edition
ISBN: 9781260238877
Author: CACHON
Publisher: RENT MCG
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Chapter 11, Problem 2PA
Summary Introduction
To determine: The firm’s stock-out probability for the week.
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Assume the weight is 0.6 for the most recent period; 0.2 for the second most recent; 0.1 for the third most recent; and 0.1 for the fourth most recent period. Using the four-period weighted moving average technique to predict the demand in February 2019. Find the X and Y values.
Dt
Ft
Period
Demand
Four-period weighted Moving Average
2014
September
9400
October
10300
November
11200
December
4998
2015
January
9800
7209
February
9555
X
March
9800
Y
Group of answer choices
X = 9899.8; Y = 9778.2
X = 9312.8; Y = 9555.2
X = 9029.6; Y = 9312.8
X = 9555.0; Y = 9313.7
X = 9872.4; Y = 9029.4
Year Sales
1) 123
2)118
3) 109
4) 112
5) 100
6) 110
7) 124
8)Determine the demand in Year 8 using a 3-month moving average using the sales table. Use weights of 0.40, 0.30 and 0.30
Chapter 11 Solutions
OPERATIONS MANAGEMENT
Ch. 11 - Prob. 1CQCh. 11 - Prob. 2CQCh. 11 - Prob. 3CQCh. 11 - Prob. 4CQCh. 11 - Prob. 5CQCh. 11 - Prob. 6CQCh. 11 - Prob. 7CQCh. 11 - Prob. 8CQCh. 11 - Prob. 9CQCh. 11 - Prob. 10CQ
Ch. 11 - Prob. 11CQCh. 11 - Prob. 12CQCh. 11 - Prob. 13CQCh. 11 - Over time, consumers have less of a need for a...Ch. 11 - For 10 percent of the products in a category, a...Ch. 11 - Prob. 2PACh. 11 - Prob. 3PACh. 11 - Prob. 4PACh. 11 - Prob. 5PACh. 11 - Anvils Works requires, on average, 2800 tons of...Ch. 11 - Prob. 7PACh. 11 - Prob. 8PACh. 11 - Prob. 1CCh. 11 - Prob. 2CCh. 11 - Rob Honeycutt created Timbuk2 to offer consumers...
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- Please help to solve step by step.arrow_forwardPlease answer it as soon as possiblearrow_forwardThe Saki motorcycle dealer in the Minneapolis–St. Paul area wants to make an accurate forecast of demand for the Saki Super TXII motorcycle during the next month. Because the manufacturer is in Japan, it is difficult to send motorcycles back or reorder if the proper number is not ordered a month ahead. From sales records, the dealer has accumulated the following data for the past year: Month Motorcycle Sales January 9 February 7 March 10 April 8 May 7 June 12 July 10 August 11 September 12 October 10 November 14 December 16 a. Compute a 3-month moving average forecast of demand for April through January (of the next year). b. Compute a 5-month moving average forecast for June through January. c. Compare the two forecasts computed in (a) and (b), using MAD. Which one should the dealer use for January of the next year?arrow_forward
- Weekly demand for Lego at a Wal-Mart store is normally distributed with a mean of 2,500 boxes and a standard deviation of 500. Demand is assumed to be stationary and the mean demand is used as forecast. Each order costs Wal-Mart $145 and holding cost per box per year is estimated at $1.5. Lead time is 2 weeks and the store manager has decided to review inventory every 4 weeks. (Assume a periodic review policy) a. What is safety stock requirement for a service level of 90%? b. What is the order-up-to level? c. What is the total annual variable cost?arrow_forwardDemand in each period is normally distributed with a mean of 100 and standard deviation of 50. Assuming demand across periods are independent, what is the standard deviation of the total demand over 4 periods?arrow_forwardNational Scan, Incorporated, sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows: Month Sales (000) Units February 13 March 21 April 19 May 23 June 20 July 26 August 25 The naive approach. =25 Thousand A five-month moving average. =22.60 Thousands A weighted average using 0.60 for August, 0.15 for July, and 0.25 for June. =23.90 thousands Exponential smoothing with a smoothing constant equal to 0.15, assuming a March forecast of 16(000). -- round 2 decemial places need help A linear trend equation.--round 2 decemial places need helparrow_forward
- 13 Pam’s demand for hats is normally distributed with mean 500 and standard deviation 100. She sells her hats for $50 each and buys hats for $10 each, and anything she can't sell by the end of the year, the wholesaler will buy for $5 each. How many hats should she order for next year to maximize profit?arrow_forward22 please please help me. It is not 667arrow_forwardGive typed full explanation not a single word hand written otherwise leave itarrow_forward
- Given the following data, calculate the average demand and the standard deviation. Period Actual Demand Deviation Deviation Squared 1 1700 2 2100 3 1900 4 2200 5 2000 6 1800 7 2100 8 2300 9 2100 10 1800 Totalarrow_forwardThe annual demand for an automobile part is 3200 units. The unit cost is 60 OMR and inventory carrying charge is 25% of unit cost. Ordering cost is 20 OMR per order. (i) Determine the economic order point (ii) If you place an order for 110 units every time, is it profit or loss? How much and Why? (iii) Why demand forecasting is important for an organization? Compare qualitative and quantitative forecasting technique with an example.arrow_forwardHow is probability is used in inventory management?arrow_forward
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