Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 4, Problem 34P
Boulanger Savings and Loan is proud of its long tradition in Winter Park, Florida. Begun by Michelle Boulanger 22 years after World War II, the S&L has bucked the trend of financial and liquidity problems that has repeatedly plagued the industry. Deposits have increased slowly but surely over the years, despite recessions in 1983, 1988, 1991, 2001, and 2010. Ms. Boulanger believes it is necessary to have a long-range strategic plan for her firm, including a 1-year forecast and preferably even a 5-year forecast of deposits. She examines the past deposit data and also peruses Florida’s gross state product (GSP) over the same 44 years. (GSP is analogous to gross national product [GNP] but on the state level.) The resulting data are in the following table.
# In $ millions.
b In $ billions.
a) Using exponential smoothing, with a = .6, then trend analysis, and finally linear regression, discuss which
b) Carefully examine the data. Can you make a ease for excluding a portion of the information? Why? Would that change your choice of model?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
According to the latest unemployment report, American manufacturing added 24,000 jobs last
month but in Skowhegan Maine more than 300 manufacturing jobs at a New Balance shoes plant
could be on the line in the face of new competition overseas. Employees at the plant, like Skip
Bowman, know that his company would make more money if it would shut down the plant and
move his job oversees. He says that every day he walks through the doors; he is part of the effort
to keep the factory going. New Balance is the last major brand to produce athletic shoes in the
U.S. About 25% of its manufacturing is still in New England where it has operated for nearly a
100 years. The privately owned company says it is committed to its American workers. In
discussions with Pat Welch, plant manager for New Balance, he says that if they were thinking
about the bottom line and only the bottom line, New Balance wouldn’t be here (Skowhegan
Maine). In the backdrop of plant operations, Welch interacts with workers…
According to the latest unemployment report, American manufacturing added 24,000 jobs last
month but in Skowhegan Maine more than 300 manufacturing jobs at a New Balance shoes plant
could be on the line in the face of new competition overseas. Employees at the plant, like Skip
Bowman, know that his company would make more money if it would shut down the plant and
move his job oversees. He says that every day he walks through the doors; he is part of the effort
to keep the factory going. New Balance is the last major brand to produce athletic shoes in the
U.S. About 25% of its manufacturing is still in New England where it has operated for nearly a
100 years. The privately owned company says it is committed to its American workers. In
discussions with Pat Welch, plant manager for New Balance, he says that if they were thinking
about the bottom line and only the bottom line, New Balance wouldn’t be here (Skowhegan
Maine). In the backdrop of plant operations, Welch interacts with workers…
According to the latest unemployment report, American manufacturing added 24,000 jobs last
month but in Skowhegan Maine more than 300 manufacturing jobs at a New Balance shoes plant
could be on the line in the face of new competition overseas. Employees at the plant, like Skip
Bowman, know that his company would make more money if it would shut down the plant and
move his job oversees. He says that every day he walks through the doors; he is part of the effort
to keep the factory going. New Balance is the last major brand to produce athletic shoes in the
U.S. About 25% of its manufacturing is still in New England where it has operated for nearly a
100 years. The privately owned company says it is committed to its American workers. In
discussions with Pat Welch, plant manager for New Balance, he says that if they were thinking
about the bottom line and only the bottom line, New Balance wouldn’t be here (Skowhegan
Maine). In the backdrop of plant operations, Welch interacts with workers…
Chapter 4 Solutions
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Ch. 4 - Ethical Dilemma We live in a society obsessed with...Ch. 4 - What is a qualitative forecasting model, and when...Ch. 4 - Identify and briefly describe the two general...Ch. 4 - Identify the three forecasting time horizons....Ch. 4 - Briefly describe the steps that are used to...Ch. 4 - A skeptical manager asks what medium-range...Ch. 4 - Explain why such forecasting devices as moving...Ch. 4 - What is the basic difference between a weighted...Ch. 4 - What three methods are used to determine the...Ch. 4 - Research and briefly describe the Delphi...
Ch. 4 - What is the primary difference between a...Ch. 4 - Define time series.Ch. 4 - What effect does the value of the smoothing...Ch. 4 - Explain the value of seasonal indices in...Ch. 4 - Prob. 14DQCh. 4 - In your own words, explain adaptive forecasting.Ch. 4 - Prob. 16DQCh. 4 - Explain, in your own words, the meaning of the...Ch. 4 - Prob. 18DQCh. 4 - Give examples of industries that are affected by...Ch. 4 - Prob. 20DQCh. 4 - Prob. 21DQCh. 4 - CEO John Goodale, at Southern Illinois Power and...Ch. 4 - The following gives the number of pints of type B...Ch. 4 - a) Plot the above data on a graph. Do you observe...Ch. 4 - Refer to Problem 4.2. Develop a forecast for years...Ch. 4 - A check-processing center uses exponential...Ch. 4 - The Carbondale Hospital is considering the...Ch. 4 - The monthly sales for Yazici Batteries, Inc., were...Ch. 4 - The actual demand for the patients at Omaha...Ch. 4 - Daily high temperatures in St. Louis for the last...Ch. 4 - Lenovo uses the ZX-81 chip in some of its laptop...Ch. 4 - Data collected on the yearly registrations for a...Ch. 4 - Use exponential smoothing with a smoothing...Ch. 4 - Prob. 12PCh. 4 - At you can see in the following table, demand for...Ch. 4 - Prob. 14PCh. 4 - Refer to Solved Problem 4.1 on page 144. a) Use a...Ch. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Income at the architectural firm Spraggins and...Ch. 4 - Resolve Problem 4.19 with = .1 and =.8. Using...Ch. 4 - Prob. 21PCh. 4 - Refer to Problem 4.21. Complete the trend-adjusted...Ch. 4 - Prob. 23PCh. 4 - The following gives the number of accidents that...Ch. 4 - In the past, Peter Kelles tire dealership in Baton...Ch. 4 - George Kyparisis owns a company that manufactures...Ch. 4 - Attendance at Orlandos newest Disneylike...Ch. 4 - Prob. 28PCh. 4 - The number of disk drives (in millions) made at a...Ch. 4 - Prob. 30PCh. 4 - Emergency calls to the 911 system of Durham, North...Ch. 4 - Using the 911 call data in Problem 4.31, forecast...Ch. 4 - Storrs Cycles has just started selling the new...Ch. 4 - Boulanger Savings and Loan is proud of its long...Ch. 4 - Mark Gershon, owner of a musical instrument...Ch. 4 - Prob. 44PCh. 4 - Cafe Michigans manager, Gary Stark, suspects that...Ch. 4 - Prob. 46PCh. 4 - The number of auto accidents in Athens, Ohio, is...Ch. 4 - Rhonda Clark, a Slippery Rock, Pennsylvania, real...Ch. 4 - Accountants at the Tucson firm, Larry Youdelman,...Ch. 4 - Prob. 50PCh. 4 - Using the data in Problem 4.30, apply linear...Ch. 4 - Bus and subway ridership for the summer months in...Ch. 4 - Prob. 53PCh. 4 - Dave Fletcher, the general manager of North...Ch. 4 - Sales of tablet computers at Ted Glickmans...Ch. 4 - The following are monthly actual and forecast...Ch. 4 - Develop a forecasting model, justifying its...Ch. 4 - Prob. 2CSCh. 4 - Discuss the schools options.Ch. 4 - Prob. 1.1VCCh. 4 - Prob. 1.2VCCh. 4 - Using Perezs multiple-regression model, what would...Ch. 4 - Prob. 1.4VCCh. 4 - Describe three different forecasting applications...Ch. 4 - What is the role of the POS system in forecasting...Ch. 4 - Justify the use of the weighting system used for...Ch. 4 - Name several variables besides those mentioned in...Ch. 4 - Prob. 2.5VC
Additional Business Textbook Solutions
Find more solutions based on key concepts
•• 4.12 Consider the following actual and forecast demand levels for Big Mac hamburgers at a local McDonald’s r...
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Consider the sales data for Computer Success given in Problem 7. Use a 3-month weighted moving average to forec...
Operations Management: Processes and Supply Chains (11th Edition)
Create an Excel spreadsheet on your own that can make combination forecasts for Problem 18. Create a combinatio...
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
•• B.4. Consider the following linear programming problem:
Operations Management
The price of call. Introduction: The Black-Scholes-Merton model is also known as Black-Scholes model. It is a s...
Corporate Finance
To what does the lifetime value of the customer refer, and how is it calculated?
MARKETING:REAL PEOPLE,REAL CHOICES
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.Similar questions
- According to the latest unemployment report, American manufacturing added 24,000 jobs last month but in Skowhegan Maine more than 300 manufacturing jobs at a New Balance shoes plant could be on the line in the face of new competition overseas. Employees at the plant, like Skip Bowman, know that his company would make more money if it would shut down the plant and move his job oversees. He says that every day he walks through the doors; he is part of the effort to keep the factory going. New Balance is the last major brand to produce athletic shoes in the U.S. About 25% of its manufacturing is still in New England where it has operated for nearly a 100 years. The privately owned company says it is committed to its American workers. In discussions with Pat Welch, plant manager for New Balance, he says that if they were thinking about the bottom line and only the bottom line, New Balance wouldn’t be here (Skowhegan Maine). In the backdrop of plant operations, Welch interacts with workers…arrow_forwardAccording to the latest unemployment report, American manufacturing added 24,000 jobs last month but in Skowhegan Maine more than 300 manufacturing jobs at a New Balance shoes plant could be on the line in the face of new competition overseas. Employees at the plant, like Skip Bowman, know that his company would make more money if it would shut down the plant and move his job oversees. He says that every day he walks through the doors; he is part of the effort to keep the factory going. New Balance is the last major brand to produce athletic shoes in the U.S. About 25% of its manufacturing is still in New England where it has operated for nearly a 100 years. The privately owned company says it is committed to its American workers. In discussions with Pat Welch, plant manager for New Balance, he says that if they were thinking about the bottom line and only the bottom line, New Balance wouldn’t be here (Skowhegan Maine). In the backdrop of plant operations, Welch interacts with workers…arrow_forwardMickey Lawson is considering investing some money that he inherited. The following payoff table gives the profit that would be realized during the next year for each of three investments alternatives Mickey is considering: State of Nature Decision alternatives Good Economy Poor Economy Stock market 80,000 -20,000 Bonds 30,000 20,000 CDs 23,000 23,000 Probability 0.5 0.5 Compute decision would maximize expected profits. Compute the maximum amount that should be paid for a perfect forecast of the economy.arrow_forward
- When a new business is started, or a patent idea needs funding, venture capitalists or investment bankers will want to see a business plan that includes forecast information related to profit and loss statements. What type of forecasting information do you think would the investors be looking for? Why?arrow_forwardAlligator, Inc. is a shoe designer, manufacturer, and distributor that launched its business in 2012. Although the company operates globally, its headquarters location is in Arteixo, Galicia, Spain, which coincidentally is the central location for Zara, the flagship chain store of the Inditex group, the world’s largest apparel retailer. The best-selling brand of Alligator, Inc. is its GatorsTM model, which is a market leader in the funky, brightly colored, lightweight success is related also to the fact that each pair shoe market that has enjoyed unexpectedly high demand in recent years. Made of a highly resilient, space-age plastics material, GatorsTM includes “one-size fits all” orthotics to meet the needs of individual consumers. Alligator, Inc. has patented the processes relating to the manufacture of the orthotics, and the overall value of this product innovation is similar to the way in which the super-secret formula for Coke is valuable to Coca-Cola, Inc. The Alligator supply…arrow_forwardAfter reading about economic predictions, Debbie Gibson (see problem #4) has assigned the probabilities that the economy will be strong, average, and weak at 0.2, 0.35, and 0.45 respectively. a) Using EMVs, what option should Debbie choose? What is the maximum EMV? b) Using EOL, what option should Debbie choose? What is the minimum EOL? c) Compute the EVPI and show that it is the same as the minimum EOL. For Reference: (Problem # 4) Debbie Gibson is considering three investment options for a small inheritance that she has just received-stocks, bonds, and money market. The return on her investment will depend on the performance of the economy, which can be strong, average, or weak. If the market is strong her returns are 9% for stocks, 6% for bonds and 4% for money market. If the market is average her returns are 5% for stocks, 4% for bonds and 6% for money market. If the market is weak her returns are -7% for stocks, 2% for bonds and 1% for money market.arrow_forward
- Vibpure Water Purifiers Vibpure Private Limited (Vibpure) is a growing organization with a wide range of water purifiers, air purifiers, vacuum cleaners, and water dispensers. The company was facing acute competition and had achieved only 91 percent of its sales target in the first 6 months of 2017. July-December is going to be a crucial period for the company to achieve 100 percent of its annual sales targets. After making up for first half, the company is going to launch a new water purifier with RO and UV technology. This is an advanced water purifier with many competitive advantages. Its success is critical for organization. Sales of water purifiers usually require demonstrations by the sales persons so it's important that all sales representatives memorize and practice the demonstration script. Hence, the company has developed a sales contest with an award of an HD TV to the best demonstration. The contest is planned at zonal levels where all sales representatives of a zone can…arrow_forwardList 3-5 possible changes that Tesla could implement to improve their forecasting accuracy?arrow_forwardRead the following passage and answer the question that follows Quincy Snodgrass Enterprises—Forecasting Quincy Snodgrass is an entrepreneur and a lover of the outdoors. He has worked for various companies since he graduated college with his business administration degree in management. Over the years, he has saved every extra penny and now has the starting capital he needs; consequently, he plans to open his own business. Quincy plans to open a landscaping business. The primary services he’ll offer are grass cutting, edging, and bush trimming. Obviously, this will only provide income in the spring, summer, and early fall. Therefore, he plans to offer snow removal in the winter. His goal is to continue to provide those baseline services and expand into actual landscaping work. Quincy’s initial challenge is to develop a forecast of how many customers he’ll have each month. This is essential to determine if he needs to hire any additional labor throughout the season. Unfortunately, none…arrow_forward
- Read the following passage and answer the question that follows Quincy Snodgrass Enterprises—Forecasting Quincy Snodgrass is an entrepreneur and a lover of the outdoors. He has worked for various companies since he graduated college with his business administration degree in management. Over the years, he has saved every extra penny and now has the starting capital he needs; consequently, he plans to open his own business. Quincy plans to open a landscaping business. The primary services he’ll offer are grass cutting, edging, and bush trimming. Obviously, this will only provide income in the spring, summer, and early fall. Therefore, he plans to offer snow removal in the winter. His goal is to continue to provide those baseline services and expand into actual landscaping work. Quincy’s initial challenge is to develop a forecast of how many customers he’ll have each month. This is essential to determine if he needs to hire any additional labor throughout the season. Unfortunately, none…arrow_forwardRead the following passage and answer the question that follows Quincy Snodgrass Enterprises—Forecasting Quincy Snodgrass is an entrepreneur and a lover of the outdoors. He has worked for various companies since he graduated college with his business administration degree in management. Over the years, he has saved every extra penny and now has the starting capital he needs; consequently, he plans to open his own business. Quincy plans to open a landscaping business. The primary services he’ll offer are grass cutting, edging, and bush trimming. Obviously, this will only provide income in the spring, summer, and early fall. Therefore, he plans to offer snow removal in the winter. His goal is to continue to provide those baseline services and expand into actual landscaping work. Quincy’s initial challenge is to develop a forecast of how many customers he’ll have each month. This is essential to determine if he needs to hire any additional labor throughout the season. Unfortunately, none…arrow_forwardAlthough the unpredicted, yet disruptive, impact of the CoViD-19 pandemic is global and has negatively affected all organizations, identify a business organization that you think has been affected the most. In the new normal, which forecasting time horizon (short-range, medium-range, or long-range) would you suggest should be adopted by this organization in forecasting the demand for its main product? Justify your answer. Cite your assumptions. Cite 2 to 3 factors that this business organization should use as a basis for forecasting the demand for its main product. Justify your answer.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Single Exponential Smoothing & Weighted Moving Average Time Series Forecasting; Author: Matt Macarty;https://www.youtube.com/watch?v=IjETktmL4Kg;License: Standard YouTube License, CC-BY
Introduction to Forecasting - with Examples; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=98K7AG32qv8;License: Standard Youtube License