Khyber Teaching Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year. The miles driven during the last five years are as follows. Year 1 2 3 4 5 Mileage 4,000 5,000 4,400 4,800 4,700 a) Forecast the mileage for next year using a two year moving average. b) Find the MAD for your forecast in part 1. c) Use a weighted two year moving average with weights of 0.4 and 0.6 to forecast next year mileage. What is the MAD of this forecast? d) Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 4,000 miles and α = 0.5
Khyber Teaching Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year. The miles driven during the last five years are as follows. Year 1 2 3 4 5 Mileage 4,000 5,000 4,400 4,800 4,700 a) Forecast the mileage for next year using a two year moving average. b) Find the MAD for your forecast in part 1. c) Use a weighted two year moving average with weights of 0.4 and 0.6 to forecast next year mileage. What is the MAD of this forecast? d) Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 4,000 miles and α = 0.5
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
Related questions
Question
Khyber Teaching Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year. The miles driven during the last five years are as follows.
Year 1 2 3 4 5
Mileage 4,000 5,000 4,400 4,800 4,700
a)
b) Find the MAD for your forecast in part 1.
c) Use a weighted two year moving average with weights of 0.4 and 0.6 to forecast next year mileage. What is the MAD of this forecast?
d) Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 4,000 miles and α = 0.5
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 8 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing