Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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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:
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
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
miles (round your response to the nearest whole number).
a) Using a 2-year moving average, the forecast for year 6 =
1
3,050
2
4,000
3
3,450
4
3,750
5
3,750
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
3,100
2
4,000
3
3,450
4
3,850
A
5
3,750
a) Using a 2-year moving average, the forecast for year 6 = 3800 miles (round your response to the nearest whole number).
b) If a 2-year moving average is used to make the forecast, the MAD based on this = miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data)
Help with the 2nd part of C please and show the steps thank you
Chapter 4 Solutions
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
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