3OQ Given the following history, use... [FREE SOLUTION]

91影视

Operations And Supply Chain Management

F. Robert Jacobs

Business Studies

14th Edition 路 800 pages

ISBN: 9780078024023

Chapter 4: 3OQ (page 476)

Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note, the 1st quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec.
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Last year
$100$
$125$
$135$
$175$
$185$
$200$
$150$
$140$
$130$
$200$
$225$
$250$
This year
$125$
$135$
$135$
$190$
$200$
$190$

Short Answer

Expert verified

Forecasting is the act of predicting demand, supply, and pricing within an industry. It involves investigating the competition, collecting supplier data, and analyzing past patterns to predict the future of an industry.

Step by step solution

Moving average

When demand for a product is neither growing nor declining rapidly, and if it doesn't have seasonal characteristics, a moving averagewill be useful in removing the random fluctuations for forecasting.

Explanation

Oct	200
Nov	$225$
Dec	$250$	Sum of $(200 + 225 + 250) = 675$
Jan	$125$
Feb	$135$
Mar	135	Sum of localid="1657685832893" $(125 + 135 + 135) = 395$
Apr	$190$
May	$200$
Jun	$190$	Sum of (190+200+190)=580

The three quarter moving average is = $\frac{675 + 395 + 580}{3} = 550$

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Week 1	300
Week 2	400
Week 3	600
Week 4	700

Months	Sales
闯补苍耻补谤测鈥揊别产谤耻补谤测	109
惭补谤肠丑鈥揂辫谤颈濒	104
惭补测鈥揓耻苍别	150
闯耻濒测鈥揂耻驳耻蝉迟	170
厂别辫迟别尘产别谤鈥揙肠迟辞产别谤	120
狈辞惫别尘产别谤鈥揇别肠别尘产别谤	100

Months	Sales
闯补苍耻补谤测鈥揊别产谤耻补谤测	115
惭补谤肠丑鈥揂辫谤颈濒	112
惭补测鈥揓耻苍别	159
闯耻濒测鈥揂耻驳耻蝉迟	182
厂别辫迟别尘产别谤鈥揙肠迟辞产别谤	126
狈辞惫别尘产别谤鈥揇别肠别尘产别谤	106

ITEMS	DESCRIPTION	USAGE
X	Bracket assembly	1
A	Wall board	4
B	Hanger sub-assembly	2
D	Hanger casting	3
E	Ceramic knob	1
C	Rivet Head screw	3
F	Metal tong	4
G	Plastic cap	2

ITEMS	X	A	B	C	D	E	F	G
Inventory	25	16	60	20	180	160	1000	100

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Short Answer

Step by step solution

Moving average

Explanation

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	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
Last year	$100$	$125$	$135$	$175$	$185$	$200$	$150$	$140$	$130$	$200$	$225$	$250$
This year	$125$	$135$	$135$	$190$	$200$	$190$