Operations Management
14th Edition
ISBN: 9781260238891
Author: Stevenson
Publisher: MCG
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Textbook Question
Chapter 3, Problem 29P
Refer to the data in problem 22
a. Compute a tracking signal for the 10th month for each
b. Compute 2s control limits for each forecast.
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What is the connection between using a tracking signal and statistical control limits
for forecast control?
Sales of PQR-Cool air conditioners have grown steadily during the past 5 years:
The sales manager had predicted before the business started, that year 1's sales would be 410
air conditioners.
YEAR
1
2 3 4 5 6
conditioners.
SALES
450
495
518
563
584
?
a) Using exponential smoothing with a weight of a = 0.3, develop forecasts for years 2
through 6.
b) Using smoothing constants of 0.6 and 0.9, develop forecasts for the sales of PQR-Cool air
c) What effect did the smoothing constant have on the forecast for PQR-Cool air conditioners?
Refer to (a) and (b), which smoothing constant gives the more accurate forecast?
d) Use a 3-year moving average forecasting model to forecast the sales of PQR-Cool
air conditioners.
e) Using the trend projection method, develop a forecasting model for the sales of
PQR-Cool air conditioners.
f) Referring to answer in (a), (d), and (e), which will be a better forecaster in
predicting sales of PQR-Cool air conditioners? Justify your answer.
The following gives the number of pints of type B blood used at Woodlawn Hospital in
the past 6 weeks:
Week Of
Pints Used
August 31
360
September 7 389
September 14 410
September 21 381
September 28 368
October 5
374
a. Forecast the demand for the week of October 12 using a 4-week moving average.
[Select]
b. What is the MAD? [Select]
c. Use a 4-week weighted moving average, with weights of .1, .3, .6, and .8 using .8
for the most recent week. Forecast demand for the week of October 12.
[Select]
d. What is the MAD? [Select]
e. Compute the forecast for the week of October 12 using exponential smoothing
with a forecast for August 31 of 363 and a = .47 [Select]
f. What is the MAD? [Select]
g. Based on evaluating all three forecasting models, which forecast should be
chosen? [Select]
Chapter 3 Solutions
Operations Management
Ch. 3.15 - Prob. 1.1RQCh. 3.15 - Prob. 1.2RQCh. 3.15 - Prob. 1.3RQCh. 3 - What are the main advantage that quantitative...Ch. 3 - What are some of the consequences of poor...Ch. 3 - List the specific weaknesses of each of these...Ch. 3 - Forecasts are generally wrong a. Why are forecasts...Ch. 3 - What is the purpose of establishing control limits...Ch. 3 - What factors would you consider in deciding...Ch. 3 - Contrast the use of MAD and MSE in evaluating...
Ch. 3 - What advantages as a forecasting tool does...Ch. 3 - How does the number of periods in a moving average...Ch. 3 - What factors enter into the choice of a value for...Ch. 3 - Prob. 11DRQCh. 3 - Explain how using a centered moving average with a...Ch. 3 - Contrast the terms sales and demand.Ch. 3 - Contrast the reactive and proactive approaches to...Ch. 3 - Explain how flexibility in production systems...Ch. 3 - How is forecasting in the context of a supply...Ch. 3 - Which type of forecasting approach, qualitative or...Ch. 3 - Prob. 18DRQCh. 3 - Choose the type of forecasting technique (survey,...Ch. 3 - Explain the trade-off between responsiveness and...Ch. 3 - Who needs to be involved in preparing forecasts?Ch. 3 - How has technology had an impact on forecasting?Ch. 3 - It has been said that forecasting using...Ch. 3 - What capability would an organization have to have...Ch. 3 - When a new business is started, or a patent idea...Ch. 3 - Discuss how you would manage a poor forecast.Ch. 3 - Omar has beard from some of his customers that...Ch. 3 - Give three examples of unethical conduct involving...Ch. 3 - A commercial baker, has recorded sales (in dozens)...Ch. 3 - National Scan, Inc., sells radio frequency...Ch. 3 - A dry cleaner uses exponential smoothing to...Ch. 3 - An electrical contractors records during the last...Ch. 3 - A cosmetics manufacturers marketing department has...Ch. 3 - Prob. 6PCh. 3 - Freight car loadings ova a 12-year period at a...Ch. 3 - Air travel on Mountain Airline for the past 18...Ch. 3 - a. Obtain the linear trend equation for the...Ch. 3 - After plotting demand for four periods, an...Ch. 3 - A manager of a store that sells and installs spas...Ch. 3 - The following equation summarizes the trend...Ch. 3 - Compute seasonal relatives for this data the SA...Ch. 3 - A tourist center is open on weekends (Friday,...Ch. 3 - The manager of a fashionable restaurant open...Ch. 3 - Obtain estimates of daily relatives for the number...Ch. 3 - A pharmacist has been monitoring sales of 2...Ch. 3 - New car sales for a dealer in Cook County,...Ch. 3 - The following table shows a tool and die companys...Ch. 3 - An analyst must decide between two different...Ch. 3 - Two different forecasting techniques (F1 and F2)...Ch. 3 - Two independent methods of forecasting based on...Ch. 3 - Long-Life Insurance has developed a linear model...Ch. 3 - Timely Transport provides local delivery service...Ch. 3 - The manager of a seafood restaurant was asked to...Ch. 3 - The following data were collected during a study...Ch. 3 - Lovely Lawns Inc., intends to use sales of lawn...Ch. 3 - The manager of a travel agency has been using a...Ch. 3 - Refer to the data in problem 22 a. Compute a...Ch. 3 - The classified department of a monthly magazine...Ch. 3 - A textbook publishing company has compiled data on...Ch. 3 - A manager has just receded an valuation from an...Ch. 3 - A manager uses this equation to predict demand for...Ch. 3 - A manager uses a trend equation plus quarterly...Ch. 3 - ML MANUFACTURING ML Manufacturing makes various...Ch. 3 - ML MANUFACTURING ML Manufacturing makes various...Ch. 3 - HIGHLINE FINANCIAL SERVICES, LTD. Highline...
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