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- What is the seasonal relative for the summer? (Please keep 3 decimal places for your answer)The manager of a fashionable restaurant open Wednesday through Saturday says that the restaurant does about 35 percent of its business on Friday night, 30 percent on Saturday night, and 20 percent on Thursday night. What seasonal relatives would describe this situation?What advantages does adjusted exponential smoothing have over a linear trend line for forecasted demand that exhibits a trend?
- The following graph shows the demand curve for uff, a useful commodity produced on the planet Hermes. The Hermetian currency is the yen. The graph input tool also shows how demand for uff is affected by changes in the average income of Hermetians, as well as the prices of tulg and snick, two other related goods available on the planet. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Suppose that the price of a gram of uff decreased from 50 yen to 45 yen. This would cause a _____(options: movement along, shift of)the demand curve and therefore an increase in ________ (options: the demand for uff, the quantity of uff demanded) Plug any value lower than the current number into the Average Income box. A decrease in average income causes a leftward ________ (options:…Global Logistics needs to rent space for storing product for the next three years. The following information regarding the demand and spot price is available. Current demand for the product is 150,000. Historically, Global Logistics has required 1500 square feet to store 1500 units of the product. Demand for the product can go up by 20% with a probability of 0.7 or down by 20% with a probability of 0.3. Global Logistics can sign a three-year fixed lease to rent 150,000 square feet of space at $1.00 per square foot per year. The firm may also choose to obtain warehousing space on the spot market. The current spot market price is $1.20 per square foot per year. The spot price can go up by 10% with a probability of 0.8 and can decrease by 10% with a probability of 0.2. The firm receives a revenue of $1.22 for each unit of demand. a) Create a decision tree showing period 0, 1 and 2 for the scenario described above. b) Calculate the NPV for the option when the firm decides to sign a…A retailer is considering two possible definitions of “in stock”:I. A product is in stock if it has at least one unit on hand at the end of the day.II. A product is in stock if it has satisfied all demand during a day.For a fixed order-up-to level, which definition yields the higher in-stock probability? a. Definition I because if one unit is on hand, then all demand must have been satisfied.b. Definition II because the firm is more likely to satisfy all demand than to end theday with one unit on hand.c. Definition II because if all demand is satisfied, then there must be some inventory left over.d. Either one is possible because it will depend on the particular order-up-to policychosen, the distribution function of demand, and the lead time
- Forecasts affect planning but not the other management functions. True FalseDoes double exponential smoothing always forecast better than simple exponential smoothing when we suppose that there is a increasing or decreasing trend.Using the exponential smoothing forecast, is it possible to forecast a demand that isbigger than any previously observed demand?a. Yesb. No
- I understand the moving average concept but not the weighted moving average and exponential smoothingWhy distribution range negative infinity to positive infinity is transformed to zero to positive infinity? ( probability distribution)Difference between the actual value and the value that was predicted for a given period.