Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 3, Problem 14P
A tourist center is open on weekends (Friday, Saturday, and Sunday). The owner-manager hopes to improve
a. Develop seasonal relatives for the shop using the centered moving average method.
b. Develop seasonal relatives for the shop using the SA method (see Example 8B)
c. Explain why the results of the two methods correlate the way they do.
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Students have asked these similar questions
2. Solve using Excel. The monthly sales for Telco Batteries, Inc., were as follows:
Month
Sales
January
February
March
April
May
20
21
15
14
13
June
16
July
August
September
17
18
20
October
20
November
21
December
23
a. Plot the monthly sales data. Do you observe any trend, cycles or random variations?
b. Forecast January sales using each of the following:
a. Naïve method
b. A 3-month moving average
c. A 6-month weighted moving average using 0.1, 0.1, 0.1, 0.2, 0.2 and 0.3 with
the heaviest weights applied to the most recent months
d. Exponential smoothing using an x = 0.3 and a September forecast of 18.
c. Compute the MAD and MAPE for the naïve method and 3-month moving average.
- The number of bushels of apples sold at a roadside fruit stand over 12-day
period were as follows:
7
8
9
33
34 37
35
55
32
38
Day 1
2
3
4
5
No. 25 31
29
29
Sold
10
10
11
12
40
40
37
37
32
22
a. If a three-day moving average has been used to forecast sales, what
were the daily forecasts starting with the forecast for day 10?
b. If a five-period moving average has been used, what were the forecasts
for each day starting with day 13?
c. If the exponential smoothing with a = 0.4 has been used to forecast
daily sales for apples, determine what the daily forecasts would have
been. Then plot the original data, the exponential forecasts, and a set of
naïve forecasts on the same graph. Based on the visual comparison, is
the naïve more accurate or less accurate than the exponential smoothing
method, or are they about the same?
Please solve in 30 minute
Chapter 3 Solutions
Operations Management
Ch. 3.15 - Prob. 1.1RQCh. 3.15 - Prob. 1.2RQCh. 3.15 - Prob. 1.3RQCh. 3 - What are the main advantage that quantitative...Ch. 3 - What are some of the consequences of poor...Ch. 3 - List the specific weaknesses of each of these...Ch. 3 - Forecasts are generally wrong a. Why are forecasts...Ch. 3 - What is the purpose of establishing control limits...Ch. 3 - What factors would you consider in deciding...Ch. 3 - Contrast the use of MAD and MSE in evaluating...
Ch. 3 - What advantages as a forecasting tool does...Ch. 3 - How does the number of periods in a moving average...Ch. 3 - What factors enter into the choice of a value for...Ch. 3 - Prob. 11DRQCh. 3 - Explain how using a centered moving average with a...Ch. 3 - Contrast the terms sales and demand.Ch. 3 - Contrast the reactive and proactive approaches to...Ch. 3 - Explain how flexibility in production systems...Ch. 3 - How is forecasting in the context of a supply...Ch. 3 - Which type of forecasting approach, qualitative or...Ch. 3 - Prob. 18DRQCh. 3 - Choose the type of forecasting technique (survey,...Ch. 3 - Explain the trade-off between responsiveness and...Ch. 3 - Who needs to be involved in preparing forecasts?Ch. 3 - How has technology had an impact on forecasting?Ch. 3 - It has been said that forecasting using...Ch. 3 - What capability would an organization have to have...Ch. 3 - When a new business is started, or a patent idea...Ch. 3 - Discuss how you would manage a poor forecast.Ch. 3 - Omar has beard from some of his customers that...Ch. 3 - Give three examples of unethical conduct involving...Ch. 3 - A commercial baker, has recorded sales (in dozens)...Ch. 3 - National Scan, Inc., sells radio frequency...Ch. 3 - A dry cleaner uses exponential smoothing to...Ch. 3 - An electrical contractors records during the last...Ch. 3 - A cosmetics manufacturer s marketing department...Ch. 3 - Prob. 6PCh. 3 - Freight car loadings ova a 12-year period at a...Ch. 3 - Air travel on Mountain Airline for the past 18...Ch. 3 - a. Obtain the linear trend equation for the...Ch. 3 - After plotting demand for four periods, an...Ch. 3 - A manager of a store that sells and installs spas...Ch. 3 - The following equation summarizes the trend...Ch. 3 - Compute seasonal relatives for this data the SA...Ch. 3 - A tourist center is open on weekends (Friday,...Ch. 3 - The manager of a fashionable restaurant open...Ch. 3 - Obtain estimates of daily relatives for the number...Ch. 3 - A pharmacist has been monitoring sales of 2...Ch. 3 - New car sales for a dealer in Cook County,...Ch. 3 - The following table shows a tool and die companys...Ch. 3 - An analyst must decide between two different...Ch. 3 - Two different forecasting techniques (F1 and F2)...Ch. 3 - Two independent methods of forecasting based on...Ch. 3 - Long-Life Insurance has developed a linear model...Ch. 3 - Timely Transport provides local delivery service...Ch. 3 - The manager of a seafood restaurant was asked to...Ch. 3 - The following data were collected during a study...Ch. 3 - Lovely Lawns Inc., intends to use sales of lawn...Ch. 3 - The manager of a travel agency has been using a...Ch. 3 - Refer to the data in problem 22 a. Compute a...Ch. 3 - The classified department of a monthly magazine...Ch. 3 - A textbook publishing company has compiled data on...Ch. 3 - A manager has just receded an valuation from an...Ch. 3 - A manager uses this equation to predict demand for...Ch. 3 - A manager uses a trend equation plus quarterly...Ch. 3 - ML MANUFACTURING ML Manufacturing makes various...Ch. 3 - ML MANUFACTURING ML Manufacturing makes various...Ch. 3 - HIGHLINE FINANCIAL SERVICES, LTD. Highline...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Under what conditions might a firm use multiple forecasting methods?arrow_forwarda. Use a 3-month moving average to estimate the month-in-advance forecast of demand for months 4–12 and generate a forecast for the first month of next year. Calculate the average forecast error and mean absolute error. b. Use a 3-month weighted moving average with weights of 0.6, 0.3, 0.1 (most recent to least recent, respectively) to calculate month-in-advance forecasts for months 4–12 and forecast for the first month of next year. Calculate the average forecast error and mean absolute error. c. Compare the average forecast error and MAD for the forecasting methods in parts a and b. Based on these error calculations, which of the two forecast methods would you recommend? Why?arrow_forwardProvide complete and detailed solutionarrow_forward
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