Title: Operations Management Problems from Chapter 8

Contents

Problem 1

Sales for a product for the past three months have been 200, 350, and 287. Use a three-moth moving average to calculate a forecast for the fourth month. If the actual demand for month 4 turns out to be 300, calculate the forecast for month 5.

Problem 4

The following data are monthly sales of jeans at a local department store. The buyer would like to forecast sales of jeans for the next month, July:

a) Forecast sales of jeans for March through June using the naïve method, a two-period moving average, and exponential smoothing with an ∞0.2. (Hint: Use naïve to start the exponential smoothing process)

b) Compare the forecasts using MAD and decide which is best

c) Using your method of choice, make a forecast for the month of July:

Month             Sales

January              45

February            30

March                40

April                  50

May                   55

June                   47

The problems are from the text below:

Reid, D., & Sanders, R. (2009). Operations management. Hoboken, NJ: John Wiley & Sons, Inc.

Word count: 775 (2.58 pages)