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Operations Management Questions

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Please answer the following questions. Make sure to include all formulas.

a. Compute a 5-period moving average forecast for December using the following actual data:
Period Actual
June 10
July 20
August 30
September 40
October 50
November 60

b.Using the following data, use a smoothing constant of 0.2 and determine the adjusted forecast for period 7 by applying simple exponential smoothing.
Period Actual Forecast
1 80
2 202
3 200
4 300
5 303
6 306

c. Using the following data, use a smoothing constant of 0.5 and determine the adjusted forecast for 2005 by applying simple exponential smoothing.
Period Actual Forecast Adjusted Forecast
2001 101 120
2002 134
2003 135
2004 178

d.Using the linear trend equation method, calculate the forecasts for years 2015 and 2016 using the following data:
Year Demand
2010 100
2011 105
2012 107
2013 110
2014 112
Bonus points: Calculate R2 using the above information. What does the result tell you about the data?

e.Car Inc. has presented you with the following information consisting of the forecasted demand and actual sales for their latest sports car. Use the following information to calculate the mean square error.
Period Forecasted Demand Actual Demand
1 50 63
2 70 65
3 40 44
4 80 72
5 96 100

Bonus Points: Using the information in part (e), calculate the MAD and MAPE.

f. A local factory has been purchasing a particular spare part from a manufacturer in Alberta. In order to better budget their financials, they want to know what is the likely per-unit price of the spare part in 2018 based on previous prices.

Using y=a +bt, compute the forecasted price for 2018.

Year Price/Unit
2013 $3.24
2014 $3.25
2015 $3.65
2016 $3.60
2017 $3.88
2018 ?

g. Company Y produces chocolate bars. The following data represents the production inputs and chocolate outputs for Year 1 and Year 2.

Year 1 Year 2
Cost of Raw Materials $20,000 $41,000
Electricity Cost $6000 $7,300
Labor $200,000 $412,000
Miscellaneous Input Costs $5,000 $7,000
Number of Chocolate Bars Produced 120,000 units 230,000 units

Using the above data, has productivity increased or decreased from Year 1 to Year 2?

h. Using the appropriate formula, calculate the Value of a Loyal Customer using the following data:

Customer purchasing pattern: One unit every 5 years $200

Price of unit paid by customer: $200
Gross margin per unit: 70%
Customer retention rate: 40%

  • SubjectBusiness
  • TopicOperations Management
  • Difficulty LevelCollege/University
  • Answer has attachmentsYes
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Lorraine Green
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