The values of k and a assuming f ( y ) = k y a as the relationship. Introduction: From the past experiences, a big oil company can evaluate its present and the future costs. According to its study, each doubling of the size of a refinery at a single location results in the construction coststo about 68%.

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Answer 1

Question

Chapter 1.11, Problem 42P

a.

Summary Introduction

To determine: The values of k and a assuming f(y)=kya as the relationship.

Introduction: From the past experiences, a big oil company can evaluate its present and the future costs. According to its study, each doubling of the size of a refinery at a single location results in the construction coststo about 68%.

b.

Summary Introduction

To determine: The best time to make additions in plant and the optimal size of each addition.

Introduction: Based on previous experiences, the oil company can easily predict the vivid picture of its present and future. Likewise, it can determine the optimal timing of plant additions and the optimal size of each addition too.

c.

Summary Introduction

To determine: The best timing to make additions in plant and the optimal size of each addition if the largest single refinery can be built with current technology is 15,000 barrels daily.

Introduction: When the major oil company installs the largest single refinery then its optimal size will not necessarily be huge while talking about the annual count. Similarly, the optimal timing of adding the plant will not necessarily be more always.

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Scenario You have been given a task to create a demand forecast for the second year of sales of a premium outdoor grill. Accurate forecasts are important for many reasons, including for the company to ensure they have the materials they need to create the products required in a certain period of time. Your objective is to minimize the forecast error, which will be measured using the Mean Absolute Percentage Error (MAPE) with a goal of being below 25%. You have historical monthly sales data for the past year and access to software that provides forecasts based on five different forecasting techniques (Naïve, 3-Month Moving Average, Exponential Smoothing for .2, Exponential Smooth for .5, and Seasonal) to help determine the best forecast for that particular month. Based on the given data, you will identify trends and patterns to create a more accurate forecast. Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next…

Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next month. Remember to select the forecasting technique that produces the forecast error nearest to zero. For example: a. Naïve Forecast is 230 and the Forecast Error is -15. b. 3-Month Moving Forecast is 290 and the Forecast Error is -75. c. Exponential Smoothing Forecast for .2 is 308 and the Forecast Error is -93. d. Exponential Smoothing Forecast for .5 is 279 and the Forecast Error is -64. e. Seasonal Forecast is 297 and the Forecast Error is -82. The forecast for the next month would be 230 as the Naïve Forecast had the Forecast Error closest to zero with a -15. This forecasting technique was the best performing technique for that month. You do not need to do any external analysis-the forecast error for each strategy is already calculated for you in the tables below. Naïve Month Period Actual Demand Naïve Forecast Error 3- Month Moving Forecast 3- Month Moving…

Answer 2

Question

Chapter 1.11, Problem 42P

a.

Summary Introduction

To determine: The values of k and a assuming f(y)=kya as the relationship.

Introduction: From the past experiences, a big oil company can evaluate its present and the future costs. According to its study, each doubling of the size of a refinery at a single location results in the construction coststo about 68%.

b.

Summary Introduction

To determine: The best time to make additions in plant and the optimal size of each addition.

Introduction: Based on previous experiences, the oil company can easily predict the vivid picture of its present and future. Likewise, it can determine the optimal timing of plant additions and the optimal size of each addition too.

c.

Summary Introduction

To determine: The best timing to make additions in plant and the optimal size of each addition if the largest single refinery can be built with current technology is 15,000 barrels daily.

Introduction: When the major oil company installs the largest single refinery then its optimal size will not necessarily be huge while talking about the annual count. Similarly, the optimal timing of adding the plant will not necessarily be more always.

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Answer 3

Question

Chapter 1.11, Problem 42P

a.

Summary Introduction

To determine: The values of k and a assuming f(y)=kya as the relationship.

Introduction: From the past experiences, a big oil company can evaluate its present and the future costs. According to its study, each doubling of the size of a refinery at a single location results in the construction coststo about 68%.

b.

Summary Introduction

To determine: The best time to make additions in plant and the optimal size of each addition.

Introduction: Based on previous experiences, the oil company can easily predict the vivid picture of its present and future. Likewise, it can determine the optimal timing of plant additions and the optimal size of each addition too.

c.

Summary Introduction

To determine: The best timing to make additions in plant and the optimal size of each addition if the largest single refinery can be built with current technology is 15,000 barrels daily.

Introduction: When the major oil company installs the largest single refinery then its optimal size will not necessarily be huge while talking about the annual count. Similarly, the optimal timing of adding the plant will not necessarily be more always.

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Answer 4

Question

Chapter 1.11, Problem 42P

a.

Summary Introduction

To determine: The values of k and a assuming f(y)=kya as the relationship.

Introduction: From the past experiences, a big oil company can evaluate its present and the future costs. According to its study, each doubling of the size of a refinery at a single location results in the construction coststo about 68%.

b.

Summary Introduction

To determine: The best time to make additions in plant and the optimal size of each addition.

Introduction: Based on previous experiences, the oil company can easily predict the vivid picture of its present and future. Likewise, it can determine the optimal timing of plant additions and the optimal size of each addition too.

c.

Summary Introduction

To determine: The best timing to make additions in plant and the optimal size of each addition if the largest single refinery can be built with current technology is 15,000 barrels daily.

Introduction: When the major oil company installs the largest single refinery then its optimal size will not necessarily be huge while talking about the annual count. Similarly, the optimal timing of adding the plant will not necessarily be more always.

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Answer 5

Chapter 1.11, Problem 42P

a.

Summary Introduction

To determine: The values of k and a assuming f(y)=kya as the relationship.

Introduction: From the past experiences, a big oil company can evaluate its present and the future costs. According to its study, each doubling of the size of a refinery at a single location results in the construction coststo about 68%.

b.

Summary Introduction

To determine: The best time to make additions in plant and the optimal size of each addition.

Introduction: Based on previous experiences, the oil company can easily predict the vivid picture of its present and future. Likewise, it can determine the optimal timing of plant additions and the optimal size of each addition too.

c.

Summary Introduction

To determine: The best timing to make additions in plant and the optimal size of each addition if the largest single refinery can be built with current technology is 15,000 barrels daily.

Introduction: When the major oil company installs the largest single refinery then its optimal size will not necessarily be huge while talking about the annual count. Similarly, the optimal timing of adding the plant will not necessarily be more always.

Answer 6

Chapter 1.11, Problem 42P

a.

Summary Introduction

To determine: The values of k and a assuming f(y)=kya as the relationship.

Introduction: From the past experiences, a big oil company can evaluate its present and the future costs. According to its study, each doubling of the size of a refinery at a single location results in the construction coststo about 68%.

Answer 7

Chapter 1.11, Problem 42P

a.

Summary Introduction

To determine: The values of k and a assuming f(y)=kya as the relationship.

Introduction: From the past experiences, a big oil company can evaluate its present and the future costs. According to its study, each doubling of the size of a refinery at a single location results in the construction coststo about 68%.

Answer 8

b.

Summary Introduction

To determine: The best time to make additions in plant and the optimal size of each addition.

Introduction: Based on previous experiences, the oil company can easily predict the vivid picture of its present and future. Likewise, it can determine the optimal timing of plant additions and the optimal size of each addition too.

Answer 9

b.

Summary Introduction

To determine: The best time to make additions in plant and the optimal size of each addition.

Introduction: Based on previous experiences, the oil company can easily predict the vivid picture of its present and future. Likewise, it can determine the optimal timing of plant additions and the optimal size of each addition too.

Answer 10

c.

Summary Introduction

To determine: The best timing to make additions in plant and the optimal size of each addition if the largest single refinery can be built with current technology is 15,000 barrels daily.

Introduction: When the major oil company installs the largest single refinery then its optimal size will not necessarily be huge while talking about the annual count. Similarly, the optimal timing of adding the plant will not necessarily be more always.

Answer 11

c.

Summary Introduction

To determine: The best timing to make additions in plant and the optimal size of each addition if the largest single refinery can be built with current technology is 15,000 barrels daily.

Introduction: When the major oil company installs the largest single refinery then its optimal size will not necessarily be huge while talking about the annual count. Similarly, the optimal timing of adding the plant will not necessarily be more always.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 1.3 - Prob. 1P Ch. 1.3 - Prob. 2P Ch. 1.3 - Prob. 3P Ch. 1.3 - Prob. 4P Ch. 1.3 - Prob. 5P Ch. 1.3 - Prob. 6P Ch. 1.3 - Prob. 7P Ch. 1.3 - Prob. 8P Ch. 1.3 - Prob. 9P Ch. 1.3 - Prob. 10P

Solution Summary: The author explains how doubling the size of a refinery results in the construction cost of about 68%.

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