Exam 6: Demand Management, Forecasting, and Aggregate Planning

Vodafone Corporation is preparing an aggregate production plan for its product for the next four months. The firm's expected monthly demand is given in the following table. The firm will have 100 units in inventory at the beginning of the month and wishes to maintain at least 100 units at the end of each month. The following is other critical data: Production cost per unit = $125 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per associate = $50 Firing cost per associate = $100 Beginning number of associates = 25 Each associate can produce 25 units per month. -A lamp manufacturer enters a six-month planning a period with forecasts as indicated in the table. To make things as stable as possible, the sales and operations planner decides to use a level plan throughout the period. The starting inventory is 240 units, and the planner would like to end this period with no inventory. How much should they produce in September?

-Calculate an exponential smoothing forecast for Period 5 using a smoothing constant of 0.6 and an initial forecast for period 4 of 275.

Vodafone Corporation is preparing an aggregate production plan for its product for the next four months. The firm's expected monthly demand is given in the following table. The firm will have 100 units in inventory at the beginning of the month and wishes to maintain at least 100 units at the end of each month. The following is other critical data: Production cost per unit = $125 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per associate = $50 Firing cost per associate = $100 Beginning number of associates = 25 Each associate can produce 25 units per month. -Given the above information, what is the total cost of a chase plan (using hiring and firing)?

Given the series of demand data below -Calculate the running sum of forecast error (RSFE) for n = 6 (six-period moving average) between Weeks 7 and 10.

Humboldt Corporation is preparing an aggregate production plan for fasteners for the next four quarters. The company's expected quarterly demand is given in the following table. The company will have 1,000 fasteners in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other critical data: Production cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that time. -If Humboldt prefers a level plan, what will be the regular production rate per quarter?

A well-educated lumberjack decides to use linear regression to predict the demand for firewood based on the ambient temperature. He has collected data on firewood sales and temperature for the last several days and has performed some preliminary calculations as shown in the table. -Determine the regression equation based on the data. What is the y-axis intercept?

A company has the data shown in the chart below concerning its forecast performance over the past five time periods. -Calculate the tracking signal for Period 4 (TS = RSFE / MAD).

A well-educated lumberjack decides to use linear regression to predict the demand for firewood based on the ambient temperature. He has collected data on firewood sales and temperature for the last several days and has performed some preliminary calculations as shown in the table. -Determine the regression equation based on the data. What is the slope of the regression equation?

-Zampa and Company sold 2,000 widgets yesterday. It had forecasted sales of 1,900 units. Using exponential smoothing with a smoothing constant of 0.5, what is the forecast for today's sales of widgets?

A well-educated lumberjack decides to use linear regression to predict the demand for firewood based on the ambient temperature. He has collected data on firewood sales and temperature for the last several days and has performed some preliminary calculations as shown in the table. -Determine the regression equation based on the data. What is the sample coefficient of determination (R-square) for the regression equation?

A company has the data shown in the chart below concerning its forecast performance over the past five time periods. -Calculate the forecast demand for Period 2.

A company has the data shown in the chart below concerning its forecast performance over the past five time periods. -Calculate the running sum of forecast error (RSFE).

A well-educated lumberjack decides to use linear regression to predict the demand for firewood based on the ambient temperature. He has collected data on firewood sales and temperature for the last several days and has performed some preliminary calculations as shown in the table. -Marilyn runs a multiple regression for the output of cheese curds by using the daily temperature and the consumption of sweet clover. The intercept term is 23, the slope coefficient for the daily temperature is 1.5, and the slope coefficient for the consumption of sweet clover is 0. Which of these conclusions is most appropriate?

A company has the data shown in the chart below concerning its forecast performance over the past five time periods. -Calculate the forecast error for Period 3.

-For Plutonium Courtyard Hotel in Wendover, Saturday is the best day of the week for business. The gambling take for the hotel on Saturdays over the past four weeks was as follows: Using a moving average with n = 3 terms, what would be the forecast for Week 5?

A company has the information shown in the chart below regarding its forecast performance in the past three periods. -Calculate the mean absolute deviation (MAD).

Given the series of demand data below -Calculate the mean absolute deviation (MAD) for n = 2 (two-period moving average) between Weeks 7 and 10.

Given the series of demand data below -Calculate the mean absolute deviation (MAD) for n = 6 (six-period moving average) between Weeks 7 and 10.

-Willow Company had sales of $100,000 last week. The company had forecasted that sales would be $120,000. Using exponential smoothing with a smoothing constant of 0.3, what is the forecast for this week's sales?

Humboldt Corporation is preparing an aggregate production plan for fasteners for the next four quarters. The company's expected quarterly demand is given in the following table. The company will have 1,000 fasteners in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other critical data: Production cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that time. -Given the above information, what is the inventory carrying cost of a level plan?