Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 3, Problem 3P
A dry cleaner uses exponential smoothing to
a. Prepare a forecast for September.
b. Assuming actual September usage of 92 percent, prepare a forecast for October usage.
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b) Use exponential smoothing with a smoothing constant of 0.30 to forecast the sales. Assume that last period’s forecast for month 1 is equal to actual to begin the procedure.
b. Which method do you think is best? Is this an improvement over the weighted average- use MAD only ?
Slide 6: Forecast• Describe the forecasting methods used by Walmart to anticipate demand for resources.• Highlight the importance of having accurate forecasts in the company's operations.7. Slide 7: Inventory Control• Evaluate Walmart Company's inventory control practices, including the techniques usedto manage and control inventory levels.• Discuss how having inventory control impacts company operations and customer satisfaction.
Daily high temperatures in St. Louis for the last week were as follows: 93, 94, 93, 95, 96, 88, 90 (yesterday).a) Forecast the high temperature today, using a 3-day moving
average.
b) Forecast the high temperature today, using a 2-day moving
average.
c) Calculate the mean absolute deviation based on a 2-day mov-
ing average.
d) Compute the mean squared error for the 2-day moving average.
e) Calculate the mean absolute percent error for the 2-day moving average
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 manufacturer s marketing department...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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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.Similar questions
- Under what conditions might a firm use multiple forecasting methods?arrow_forwardA dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 90 percent of capacity; actual usage was 87.6 percent of capacity. A smoothing constant of .1 is used. a. Prepare a forecast for September. b. Assuming actual September usage of 92 percent, prepare a forecast for October usage.arrow_forward17. Statistical and observational methods, where adequate data or settings are available in which to apply them, are superior to survey methods of forecasting. Select one O True O Falsearrow_forward
- please answer in excel Jean’s Copiers sells and repairs photocopy machines. The manager needs weekly forecasts of service calls so that she can schedule the personnel. The manager uses α = 0.3 for exponential smoothing, and the forecast for the first week was 24 calls. The manager also uses 3 weekly moving averages technique. a) Using 3 period moving averages, forecast the number of calls for week 7. b) Using exponential smoothing, forecast the number of calls for week 7. c) Compare these two forecasting techniques using Mean Squared Errors (MSE) measure. Which one is better?arrow_forward18. When Creamy Layer Inc. planned to introduce a new ice cream flavor, its senior executives looked at the sales history of earlier introductions to forecast the sales for the newest flavor. This is an example of an analogy approach for new product forecasting. Select one: O True O Falsearrow_forwardconstants of .6 and .9, develop fo recasts for the sales of VWBeetles. What effect did the smoothing constant have on the forecast?Use MAD to deternline which of the three smoothing constants (.3,.6, or .9) gives the most accurate forecast. ~ (MyLab OperationsManagement also includes a shorter (brief) version of this problem.)arrow_forward
- 10-A forecasting method that forecasts progress upward in the organization from small units to ultimately provide an aggregate forecast of employment needs is referred to as zero-base forecasting. bottom-up approach. use of predictor variables. Delphi technique.arrow_forwardExponential Smoothing, Exponentially Smoothed MAD, and Tracking SignalThe XYZ Company was flooded by a thunderstorm and lost part of its forecasting data.Positions in the table that are marked [a], [b], [c], [d], [e], and [ f ] must be recalculated from the remaining data.arrow_forwardAccuracy of forecasts. The manager of a large manufacturer of industrial pumps must choose betweentwo alternative forecasting techniques. Both techniques have been used to prepare forecasts for a sixmonth period. Using MAD as a criterion, which technique has the better performance record?FORECASTMonth Demand Technique 1 Technique 21 492 488 4952 470 484 4823 485 480 4784 493 490 4885 498 497 4926 492 493 493arrow_forward
- Daily high temperatures in St. Louis for the lastweek were as follows: 93, 94, 93, 95, 96, 88, 90 (yesterday).a) Forecast the high temperature today, using a 3-day movingaverage.b) Forecast the high temperature today, using a 2-day movingaverage.c) Calculate the mean absolute deviation based on a 2-daymoving average.d) Compute the mean squared error for the 2-day movingaverage.e) Calculate the mean absolute percent error for the 2-daymoving average.arrow_forwardForecasting plays an important role in the operations of modern management. In fact, operational managers are able to make effective decisions on the basis of accurate forecasting. On the basis of online data availability, select any organization and analyze its forecasting techniques?Length of the answer Between 200 and 220 words. References. Originality.arrow_forwardExplain the trade-off between responsiveness and stability in a forecasting system that uses time-series data. Who needs to be involved in preparing forecasts? 3. How has technology had an impact on forecasting? What capability would an organization have to have to not need forecasts? Give three examples of unethical conduct involving forecasting and the ethical principle each violatesarrow_forward
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