Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
12th Edition
ISBN: 9781259580093
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 12, Problem 8DRQ
Briefly discuss the requirements for effective MRP.
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By selecting Cigna Accredo pharmacy that i identify in my resand compare the current feedback system against the “Characteristics of a Good Multiple Source Feedback Systems” described in section 8-3-3. What can be improved? As a consultant, what recommendations would you make?
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…
Chapter 12 Solutions
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
Ch. 12.11 - What is ERP?Ch. 12.11 - What are the three main reasons firms adopt ERP?Ch. 12.11 - What are some hidden costs of ERP?Ch. 12.11 - How does ERP fit with e-commerce and supply chain...Ch. 12 - Contrast independent and dependent demand.Ch. 12 - When is MRP appropriate?Ch. 12 - Briefly define or explain each of these terms: a....Ch. 12 - Prob. 4DRQCh. 12 - Prob. 5DRQCh. 12 - What is meant by the term safety time?
Ch. 12 - Prob. 7DRQCh. 12 - Briefly discuss the requirements for effective...Ch. 12 - Prob. 9DRQCh. 12 - How can the use of MRP contribute to productivity?Ch. 12 - Prob. 11DRQCh. 12 - What is lot sizing. what is its goal, and why is...Ch. 12 - Contrast planned-order receipts and scheduled...Ch. 12 - If seasonal variations are present, is their...Ch. 12 - Prob. 15DRQCh. 12 - What are some unforeseen costs of ERP?Ch. 12 - What trade-offs are involved in the decision to...Ch. 12 - Who in the organization needs to be involved in...Ch. 12 - Prob. 3TSCh. 12 - Prob. 1CTECh. 12 - Give one example of unethical behavior involving...Ch. 12 - a. Given the following diagram for a product,...Ch. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Eighty units of end item E are needed at the...Ch. 12 - a. One hundred twenty units of end item Z are...Ch. 12 - A table is assembled using three components, as...Ch. 12 - Eighty units of end item X are needed at the...Ch. 12 - Oh No!, Inc., sells three models of radar detector...Ch. 12 - Assume that you are the manager of a shop that...Ch. 12 - Assume that you are the manager of Assembly, Inc....Ch. 12 - Determine material requirements plans for pans N...Ch. 12 - A firm that produces electric golf carts has just...Ch. 12 - Refer to Problem 12. Assume that unusually mild...Ch. 12 - Using the accompanying diagram, do the following:...Ch. 12 - A company that manufactures paving material for...Ch. 12 - Prob. 16PCh. 12 - The MRP Department has a problem. Its computer...Ch. 12 - Develop a material requirements plan for component...Ch. 12 - How many wheels sets should the manager order?Ch. 12 - When should the wheel sets be ordered?Ch. 12 - Prob. 2.1CQCh. 12 - Prob. 1OTQCh. 12 - Prob. 2OTQCh. 12 - Suppose the company has just received an order for...Ch. 12 - Prob. 4OTQCh. 12 - Prob. 5OTQ
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