Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Textbook Question
Chapter 4, Problem 5P
The Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year. The miles driven during the past 5 years are as follows:
| YEAR | MILEAGE |
| 1 | 3,000 |
| 2 | 4,000 |
| 3 | 3,400 |
| 4 | 3,800 |
| 5 | 3,700 |
- a. Forecast the mileage for next year (6th year) using a 2-year moving average.
- b. Find the MAD based on the 2-year moving average. (Hint: You will have only 3 years of matched data.)
- c. Use a weighted 2-year moving average with weights of .4 and .6 to forecast next year’s mileage. (The weight of .6 is for the most recent year.) What MAD results from using this approach to
forecasting ? (Hint: You will have only 3 years of matched data.) - d. Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 3,000 miles, and α =.5.
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The Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year. The miles driven during the past 5 years are as follows
Year
Mileage
a) Using a 2-year moving average, the forecast for year 6 = miles (round your response to the nearest whole number).
1
3,100
2
4,000
3
3,450
4
3,850
A
5
3,750
Please forecast the mileage for 2013 using the Naive method.
The Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly on the
anticipated mileage to be driven next year. The miles driven during the past 5 years are as follows:
Year
Mileage
1
3,050
2
4,050
a) Using a 2-year moving average, the forecast for year 6 =
number).
3
3,450
4
3,800
5
3,700
miles (round your response to the nearest whole
Chapter 4 Solutions
Operations Management
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