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10IVE VI ES BEL C XXXX XXXXX0X18a baiv 130A DVIENITME ISYOLSOS Tstotdu2 101 Diecoru Xsl AMOHA JHO CASE EIGHT GLASSES A DAY (EGAD) Backlogs are not allowed The EGAD Bottling Company has decided to introduce a new line of premium bottled water that will include several "designer" flavors. Marketing manager Georgianna Mercer is predicting an upturn in demand based on the new offerings and the increased public awareness of the health benefits of drinking more water. She has prepared aggregate forecasts for the next six months, as shown in the following table (quantities are Backordering cost 0 tankloads Beginning inventory Among the strategies being considered are the following: Level production supplemented by up to 10 tankloads a month from overtime. A combination of overtime, inventory, and subcontracting. Regular production should be the same each month. Using overtime for up to 15 tankloads a month, along with inventory to handle variations. Regular production should be tankloads). Month May Aug Sept Oct Total unr Forecast 420 09 06 08 Production manager Mark Mercer (no relation to Georgianna) has developed the following information. (Costs are in thousands of dollars.) the same each month. Question Regular production cost $1 per tankload Regular production capacity 60 tankloads Overtime production cost $1.6 per tankload Subcontracting cost $1.8 per tankload Holding cost $2 per tankload per month

10IVE VI ES BEL C XXXX XXXXX0X18a baiv 130A DVIENITME ISYOLSOS Tstotdu2 101 Diecoru Xsl AMOHA JHO CASE EIGHT GLASSES A DAY (EGAD) Backlogs are not allowed The EGAD Bottling Company has decided to introduce a new line of premium bottled water that will include several "designer" flavors. Marketing manager Georgianna Mercer is predicting an upturn in demand based on the new offerings and the increased public awareness of the health benefits of drinking more water. She has prepared aggregate forecasts for the next six months, as shown in the following table (quantities are Backordering cost 0 tankloads Beginning inventory Among the strategies being considered are the following: Level production supplemented by up to 10 tankloads a month from overtime. A combination of overtime, inventory, and subcontracting. Regular production should be the same each month. Using overtime for up to 15 tankloads a month, along with inventory to handle variations. Regular production should be tankloads). Month May Aug Sept Oct Total unr Forecast 420 09 06 08 Production manager Mark Mercer (no relation to Georgianna) has developed the following information. (Costs are in thousands of dollars.) the same each month. Question Regular production cost $1 per tankload Regular production capacity 60 tankloads Overtime production cost $1.6 per tankload Subcontracting cost $1.8 per tankload Holding cost $2 per tankload per month

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.7: Exponential Smoothing Models
Problem 27P: The file P13_27.xlsx contains yearly data on the proportion of Americans under the age of 18 living...
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A 012 wth0 es Tstatdu2 xal AMOHA JHO (A) 008A seiV i ds0 BeiV :10A DVIEVINE ISVO3ASOS! CPOM XXXXXXXXXXX1839 JAVDAA 1sbrel fotol CASE EIGHT GLASSES A DAY (EGAD) Backlogs are not allowed The EGAD Bottling Company has decided to introduce a new line of premium bottled water that will include several "designer" flavors. Marketing manager Georgianna Mercer is predicting an upturn in demand based on the new offerings and the increased public awareness of the health benefits of drinking more water. She has prepared aggregate forecasts for the next six months, as shown in the following table (quantities are in tankloads). Backordering cost Beginning inventory 0 tankloads Among the strategies being considered are the following: Level production supplemented by up to 10 tankloads a month from overtime. A combination of overtime, inventory, and subcontracting. Regular production should be the same each month. Month May Jun Aug Sept Oct Total Using overtime for up to 15 tankloads a month, along with inventory to handle variations. Regular production should be the same each month. Forecast 50 08 70 420 09 06 Production manager Mark Mercer (no relation to Georgianna) has developed the following information. (Costs are in thousands of dollars.) Question Regular production cost $1 per tankload Regular production capacity 60 tankloads Overtime production cost $1.6 per tankload Subcontracting cost $1.8 per tankload Holding cost $2 per tankload per month
Transcribed Image Text:A 012 wth0 es Tstatdu2 xal AMOHA JHO (A) 008A seiV i ds0 BeiV :10A DVIEVINE ISVO3ASOS! CPOM XXXXXXXXXXX1839 JAVDAA 1sbrel fotol CASE EIGHT GLASSES A DAY (EGAD) Backlogs are not allowed The EGAD Bottling Company has decided to introduce a new line of premium bottled water that will include several "designer" flavors. Marketing manager Georgianna Mercer is predicting an upturn in demand based on the new offerings and the increased public awareness of the health benefits of drinking more water. She has prepared aggregate forecasts for the next six months, as shown in the following table (quantities are in tankloads). Backordering cost Beginning inventory 0 tankloads Among the strategies being considered are the following: Level production supplemented by up to 10 tankloads a month from overtime. A combination of overtime, inventory, and subcontracting. Regular production should be the same each month. Month May Jun Aug Sept Oct Total Using overtime for up to 15 tankloads a month, along with inventory to handle variations. Regular production should be the same each month. Forecast 50 08 70 420 09 06 Production manager Mark Mercer (no relation to Georgianna) has developed the following information. (Costs are in thousands of dollars.) Question Regular production cost $1 per tankload Regular production capacity 60 tankloads Overtime production cost $1.6 per tankload Subcontracting cost $1.8 per tankload Holding cost $2 per tankload per month
<> 37 MN 2. 3. AutoSave Off A MGMT3213 Hom... Sydni Jones rS File Home Insert Draw Page Layout Formulas Data Review View Help E Conditional Formatting G Format as Table opn, Clipboard Font Alignment Number Cells Editing Z Cell Styles Styles B29 xf ^ X:^ A K B. H Period May Jun Sept Oct Total Forecast 4 Output Regular Overtime 10 max/month 10 max/month 9. Subcontract 7. Output - Forecast 8. Inventory Beginning Ending Average 2. Backlog 3. Costs: 4. Regular Overtime Subcontract Inventory Total Strategy A: Level production supplemented by up to 10 tank loads a month from overtime.
Transcribed Image Text:<> 37 MN 2. 3. AutoSave Off A MGMT3213 Hom... Sydni Jones rS File Home Insert Draw Page Layout Formulas Data Review View Help E Conditional Formatting G Format as Table opn, Clipboard Font Alignment Number Cells Editing Z Cell Styles Styles B29 xf ^ X:^ A K B. H Period May Jun Sept Oct Total Forecast 4 Output Regular Overtime 10 max/month 10 max/month 9. Subcontract 7. Output - Forecast 8. Inventory Beginning Ending Average 2. Backlog 3. Costs: 4. Regular Overtime Subcontract Inventory Total Strategy A: Level production supplemented by up to 10 tank loads a month from overtime.
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Strategy 2: A combination of overtime, inventory, and subcontracting. Regular production should be the same each month. 
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