Figure 8.9 shows summer air visibility measurements for Denver, Colorado. The acceptable visibility standard is 100, with readings above 100 indicating clean air and good visibility, and readings below 100 indicating temperature inversions caused by forest fires, volcanic eruptions, or collisions with comets.
- Is a trend evident in the data? Which time-series techniques might be appropriate for estimating the average of these data?
- A medical center for asthma and respiratory diseases located in Denver has great demand for its services when air quality is poor. If you were in charge of developing a short-term (say, 3-day)
forecast of visibility, which causal factor(s) would you analyze? In other words, which external factors hold the potential to significantly affect visibility in the short term? - Tourism, an important factor in Denver’s economy, is affected by the city s image. Air quality, as measured by visibility, affects the city’s image. If you were responsible for development of tourism, which causal factor(s) would you analyze to forecast visibility for the medium term (say, tile next two summers)?
- The federal government threatens to withhold several hundred million dollars in Department of Transportation funds unless Denver meets visibility standards within 8 years. How would you proceed to generate a long-term judgment forecast of technologies that will be available to improve visibility in the next 10 years?
A
Interpretation:Whether trend is evident in the data or not and the most appropriate time-series techniques for estimating the average of the data should be determined.
Concept Introduction: Trend is the tendency in data for a particular time may be increasing or decreasingpattern of data series at a particular time is called time series.
Answer to Problem 1DQ
No trend was identified in the given information.
Explanation of Solution
Given information:Calculating trend from data and time series techniques as appropriate using standard of acceptable visibility as 100, indicating above 100 of clean air and good visibility and below 100 of temperature inversions
Given information has no trend as there is no increase or decrease between two consecutive years because when a trend cannot be made when prediction is not possible.Prediction cannot be made for natural calamities like fire in the forest, comets crashing, and volcano explosions. Here the simple average method is appropriate
Simple average method is a method of time series and calculating moving average as it a division of summation of observations by number of appearances.
B
Interpretation:The external factors affecting the potential of significant visibility in the short term should be determined.
Concept Introduction: External factors are factors that are outside necessary to forecast in recent times
Answer to Problem 1DQ
External factors of weather,seasonaland festive factors the visibility for asthma diseases
Explanation of Solution
Given information:Medical center for asthma and respiratory diseases is in great demand for its service in Denver when air quality is poor.
Affecting external factors are as follows
Weather factor: As visibility bases, weather reports should be collected.
Seasonal factor: As visibility is being affected in the winter season due to fog, it should be considered.
Festive factor: As festive has firecrackers and smoke which affects the visibility, they should be considered before forecasting.
All the above factors majorly have effects like asthma and other diseases.
C
Interpretation:The casual factors affecting for visibility of air of tourism in medium term to Denver’s economy need to be determined.
Concept Introduction: General factors affecting the visibility is casual factors and essential in forecasting the visibility in forth coming two summers
Answer to Problem 1DQ
General factors are average visibility and pollution factor.
Explanation of Solution
Given information:Tourism in Denver is affected by the city’s image as air quality changes.
Following are the general factors affecting the visibility
Average visibility factor:It considers the visibility between two forthcoming summers
Pollution factor:Before forecasting, air pollution in weather should be considered
D
Interpretation:The long term judgment and the forecast visibility in the transportation department is to be determined of Denver’s in next 10 years
Concept Introduction: Long run judgments forecasting refers to the anticipation of any happenings in future time frame in the given time period of 8 or 10 years.
Answer to Problem 1DQ
Understanding the invention of carbon absorbing machine.
Explanation of Solution
Given information:The federal government has threatened to withhold several hundred million dollars in Department of Transportation funds.
There is carbon dioxide in air which causes pollution. Manager invented carbon-absorbing machine (which is in ending phase) by going through various science journals absorbing 40 % carbon from polluted air to make air pollution free. Visibility can be increased by pollution free standards.
Want to see more full solutions like this?
Chapter 8 Solutions
Operations Management: Processes and Supply Chains (11th Edition)
Additional Business Textbook Solutions
Fundamentals of Financial Accounting
Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Marketing: An Introduction (13th Edition)
Intermediate Accounting (2nd Edition)
Horngren's Accounting (12th Edition)
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
- Discuss possible solutions to help Tara become an effective CSR. What should martin be doing to help her?arrow_forwardWhat are the ethical challenges regarding employees (i.e., diversity, discrimination, sexual harassment, privacy, employee theft, bad leadership, etc.) that Apple Inc. has faced over the past five to ten years and that they should prepare to face in the next five to ten years. Once a developed list of challenges is created, consider how having faced those challenges will impact and be impacted by the social cause you've selected. Propose the findings on the ethical challenges faced by Apple Inc. in recent history and the near future. Analyze ways in which each challenge was (and/or could be) appropriately handled and areas for improvement. Evaluate the ethical/moral aspects of Apple Inc. that protected it from ethical challenges in the past and could protect it in the future. Assess how ethical challenges and handling of ethical challenges could positively or negatively impact the charitable cause are selected and how the selection of your social cause could positively or negatively…arrow_forwardBy 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?arrow_forward
- 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…arrow_forwardApproach 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…arrow_forwardScenario 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…arrow_forward
- Use the internet to obtain crash safety ratings for passenger vehicles. Then, answer thesequestions:a. Which vehicles received the highest ratings? The lowest ratings?b. How important are crash-safety ratings to new car buyers? Does the degree of importancedepend on the circumstances of the buyer?c. Which types of buyers would you expect to be the most concerned with crash-safety ratings?d. Are there other features of a new car that might sway a buyer from focusing solely on crashsafety? If so, what might they be?arrow_forward“Implementing a Performance Management Communication Plan at Accounting, Inc.” Evaluate Accounting Inc.’s communication plan. Specifically, does it answer all of the questions that a good communication plan should answer? Which questions are left unanswered? How would you provide answers to the unanswered questions? “Implementing an Appeals Process at Accounting, Inc.” If you were to design an appeals process to handle these complaints well, what would be the appeal process? Describe the recommended process and why.arrow_forwardThe annual demand for water bottles at Mega Stores is 500 units, with an ordering cost of Rs. 200 per order. If the annual inventory holding cost is estimated to be 20%. of unit cost, how frequently should he replenish his stocks? Further, suppose the supplier offers him a discount on bulk ordering as given below. Can the manager reduce his costs by taking advantage of either of these discounts? Recommend the best ordering policy for the store. Order size Unit cost (Rs.) 1 – 49 pcs. 20.00 50 – 149 pcs. 19.50 150 – 299 pcs. 19.00 300 pcs. or more 18.00arrow_forward
- Help answer showing level work and formulasarrow_forwardI need to forecast using a 3-Period-Moving-Average-Monthly forecasting model which I did but then I need to use my forecast numbers to generate a Master Production Schedule (MPS) I have to Start with actual sales (my own test data numbers) for August-2022 Oct-2022 i need to create MPS to supply demand starting November-2022 April 2023 I just added numbers without applying formulas to the mps on the right side of the spreadsheet because I do not know how to do it. The second image is the example of what it should look like. Thank You.arrow_forwardSolve the following Question 1. How do volume and variety affect the process selection and layout types? Discuss 2. How is the human resource aspect important to operation function? Discuss 3. Discuss the supply network design and its impact on the overall performance of the organization.arrow_forward