Forecasting and Production Level Answer

Topics: Forecasting, Inventory, Mean Pages: 2 (965 words) Published: October 29, 2014
PROBLEMS ON FORECASTING FCT 1 Given an actual demand of 103, a previous forecast value of 99, and an alpha of .4, the exponential smoothing forecast for the next period would be Answer 100.6 FCT 2 A forecasting method has produced the following over the past five months. What is the mean absolute deviation (MAD) Answer 1.2 ActualForecastErrorError1011-11810-22108 2266 0098 11 FCT 3 For a given product demand, the time series trend equation is 25.3 2.1 X. What is your forecast of demand for period 7 Answer 40.00 FCT 4 What is the forecast for May based on a weighted moving average applied to the following past demand data and using the weights .5, .3, .2 (largest weight is for most recent data) Answer 44 Nov.Dec.Jan.Feb.Mar.April373640424743 FCT 5 Weekly sales of ten-grain bread at the local Whole Foods Market are in the table below. Based on this data, forecast week 9 using a three-week moving average. Answer 407.34 WeekSales 1415 2389 3420 4382 5410 6432 7380 8410 FCT 6 The percent of variation in the dependent variable that is explained by the regression equation is measured by the a.mean absolute deviation b.slope c.coefficient of determination d.correlation coefficient e.intercept Answer c FCT 7 Most forecasting techniques assume that there is some underlying stability in the system. (a) True (b) False Answer (a) PROBLEMS ON AGGREGATE PRODUCTION PLANNING Washington Laundry Products, Inc., makes commercial and industrial laundry machines (the kinds hotels use), and has these aggregate demand requirements for the next six months. The firm has regular capacity for 120 units, and overtime capacity for 40 more. Currently, subcontracting can supply up to 100 units per month, but the subcontracting firm may soon be unavailable. MonthDemandCosts and other data1220Previous output level150 units2160Beginning inventory100 units3200Stockout cost250 per unit4210Inventory holding cost100 per unit at end of...
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