2. Given a prior forecast demand value of 230, a related actual demand value of 250 and a smoothing constant alpha of 0.1, what is the exponential smoothing forecast value for the following period? a. 230
3. Which of the following is not a component of holding cost? a.Taxes
4. Larger orders result in higher total holding cost but lower total ordering cost.
5. In general, total ordering costs are equal to total inventory holding cost for the optimal solution to the EOQ model.
6. Using the data below, find the EOQ, the total annual cost associated with the economic order quantity, and the reorder point.
Annual Demand:8,000 units
Q* = Sq. root of (2 8000 35/4) = 374
TC = 0.5(374)(4) + (8000/374)(35) = 748 + 748 = $1496 (to within rounding)
To find the reorder point, note that the weekly demand is 8000/52 = 153.85. During the 3-week lead time we anticipate 3(153.85) = 462 (rounded) units to be sold.
7.MAD, MSE, and MAPE forecast error metrics generally give similar numerical results so it doesn't matter which one is used.
8.____ forecasts are needed to plan for facility expansion. a.Long-range
9.Which of the following is not a statistical method?
10. In a bill of materials, each component is comprised of one or more parent items.
11. A bill of materials characterizes the structure of dependent demand among all items that comprise a finished good.