EBK PRINCIPLES OF OPERATIONS MANAGEMENT
10th Edition
ISBN: 8220102744059
Author: HEIZER
Publisher: PEARSON
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Chapter 4, Problem 22DQ
CEO John Goodale, at Southern Illinois Power and Light, has been collecting data on demand for electric power in its western subregion for only the past 2 years. Those data are shown in the table below.
To plan for expansion and to arrange to borrow power from neighboring utilities during peak periods, Goodale needs to be able to forecast demand for each month next year. However, the standard
a) What are the weaknesses of the standard forecasting techniques as applied to this set of data?
b) Because known models are not appropriate here, propose your own approach to forecasting. Although there is no perfect solution to tackling data such as these (in other words, there are no 100% right or wrong answers), justify your model.
c) Forecast demand for each month next year using the model you propose.
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Students have asked these similar questions
- Sales of tablet computers at Ted Glickman's electronics store in Washington, D.C., over the past 10 weeks are shown in the table below:
6
10
Week
1
Demand 20
2 3
23 27
4 5
37 26
7 8 9
30 35 22 24 29
a) The forecast for weeks 2 through 10 using exponential smoothing with a = 0.55 and a week 1 initial forecast of 20.0 are (round your responses to two decimal places):
Week
1
Demand 20
Forecast 20.0
2 3
23 27
4
37
5
26
6
30
7
35
8
22
9
24
10
29
CEO John Goodale, at Southern Illinois Power and Light,has been collecting data on demand for electric power in itswestern subregion for only the past 2 years. Those da ta areshown in the ta ble below.To plan for expansion and to arrange to borrow powerfrom neighboring utilities during peak periods, Goodaleneeds to be able to forecast demand for each month nextyear. However, the standard forecasting models discussed inthis chapter will not fit the data observed for the 2 years.a) What are the weaknesses of the standard forecasting techniquesas applied to this set of data?b) Because known models a re not appropriate here, proposeyour own approach to forecasting. Although there is noperfect solution to tackling data such as these (in otherwords, there are no 100% right or wrong answers), justify your model.c) Forecast demand for each month next year using themodel you propose.
4. A local moving company has collected data on the number of moves they have been asked to perform over the past two years. Moving is highly seasonal, so the owner/operator, who is
both burly and highly educated, decides to apply the multiplicative seasonal method to forecast the number of customers for the coming year. The equation for the trend line of yearly sales is
F1 = 100 + 60t. Please forecast demand for each quarter in Year 3. (Round the forecasts to whole numbers and show all calculations t
Complete the table below and forecast the sales of Year 3 by quarter. Copy the table below, paste to the answer box and fill in your answers. You need to take a picture of your work and upload the picture in
next question.
Year 1
Year 2
Year 3
Quarter
Demand
Quarter
Demand
Quarter
Demand
1
28
1
45
1
43
60
2
120
140
4
49
55
4
Total
240
Total
300
Total
Average
Average
Average
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Chapter 4 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
Ch. 4 - Ethical Dilemma We live in a society obsessed with...Ch. 4 - What is a qualitative forecasting model, and when...Ch. 4 - Identify and briefly describe the two general...Ch. 4 - Identify the three forecasting time horizons....Ch. 4 - Briefly describe the steps that are used to...Ch. 4 - A skeptical manager asks what medium-range...Ch. 4 - Explain why such forecasting devices as moving...Ch. 4 - What is the basic difference between a weighted...Ch. 4 - What three methods are used to determine the...Ch. 4 - Research and briefly describe the Delphi...
Ch. 4 - What is the primary difference between a...Ch. 4 - Define time series.Ch. 4 - What effect does the value of the smoothing...Ch. 4 - Explain the value of seasonal indices in...Ch. 4 - Prob. 14DQCh. 4 - In your own words, explain adaptive forecasting.Ch. 4 - Prob. 16DQCh. 4 - Explain, in your own words, the meaning of the...Ch. 4 - Prob. 18DQCh. 4 - Give examples of industries that are affected by...Ch. 4 - Prob. 20DQCh. 4 - Prob. 21DQCh. 4 - CEO John Goodale, at Southern Illinois Power and...Ch. 4 - The following gives the number of pints of type B...Ch. 4 - a) Plot the above data on a graph. Do you observe...Ch. 4 - Refer to Problem 4.2. Develop a forecast for years...Ch. 4 - A check-processing center uses exponential...Ch. 4 - The Carbondale Hospital is considering the...Ch. 4 - The monthly sales for Yazici Batteries, Inc., were...Ch. 4 - The actual demand for the patients at Omaha...Ch. 4 - Daily high temperatures in St. Louis for the last...Ch. 4 - Lenovo uses the ZX-81 chip in some of its laptop...Ch. 4 - Data collected on the yearly registrations for a...Ch. 4 - Use exponential smoothing with a smoothing...Ch. 4 - Prob. 12PCh. 4 - At you can see in the following table, demand for...Ch. 4 - Prob. 14PCh. 4 - Refer to Solved Problem 4.1 on page 144. a) Use a...Ch. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Income at the architectural firm Spraggins and...Ch. 4 - Resolve Problem 4.19 with = .1 and =.8. Using...Ch. 4 - Prob. 21PCh. 4 - Refer to Problem 4.21. Complete the trend-adjusted...Ch. 4 - Prob. 23PCh. 4 - The following gives the number of accidents that...Ch. 4 - In the past, Peter Kelles tire dealership in Baton...Ch. 4 - George Kyparisis owns a company that manufactures...Ch. 4 - Attendance at Orlandos newest Disneylike...Ch. 4 - Prob. 28PCh. 4 - The number of disk drives (in millions) made at a...Ch. 4 - Prob. 30PCh. 4 - Emergency calls to the 911 system of Durham, North...Ch. 4 - Using the 911 call data in Problem 4.31, forecast...Ch. 4 - Storrs Cycles has just started selling the new...Ch. 4 - Boulanger Savings and Loan is proud of its long...Ch. 4 - Mark Gershon, owner of a musical instrument...Ch. 4 - Prob. 44PCh. 4 - Cafe Michigans manager, Gary Stark, suspects that...Ch. 4 - Prob. 46PCh. 4 - The number of auto accidents in Athens, Ohio, is...Ch. 4 - Rhonda Clark, a Slippery Rock, Pennsylvania, real...Ch. 4 - Accountants at the Tucson firm, Larry Youdelman,...Ch. 4 - Prob. 50PCh. 4 - Using the data in Problem 4.30, apply linear...Ch. 4 - Bus and subway ridership for the summer months in...Ch. 4 - Prob. 53PCh. 4 - Dave Fletcher, the general manager of North...Ch. 4 - Sales of tablet computers at Ted Glickmans...Ch. 4 - The following are monthly actual and forecast...Ch. 4 - Develop a forecasting model, justifying its...Ch. 4 - Prob. 2CSCh. 4 - Discuss the schools options.Ch. 4 - Prob. 1.1VCCh. 4 - Prob. 1.2VCCh. 4 - Using Perezs multiple-regression model, what would...Ch. 4 - Prob. 1.4VCCh. 4 - Describe three different forecasting applications...Ch. 4 - What is the role of the POS system in forecasting...Ch. 4 - Justify the use of the weighting system used for...Ch. 4 - Name several variables besides those mentioned in...Ch. 4 - Prob. 2.5VC
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