Reference no: EM13699537
1. In the Fast Shop Market example in this chapter, Alternative II was to add a new checkout counter at the market. This alternative was analyzed using the single-server model. Why was the multiple-server model not used?
2. The manager of the Carpet City outlet needs to make an accurate forecast of the demand for Soft Shag carpet (its biggest seller). If the manager does not order enough carpet from the carpet mill, customers will buy their carpet from one of Carpet City's many competitors. The manager has collected the following demand data for the past 8 months:
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Month
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Demand for Soft Shag Carpet (1,000 yd.)
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1
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8
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2
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12
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3
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7
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4
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9
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5
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15
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6
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11
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7
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10
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8
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12
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a. Compute a 3-month moving average forecast for months 4 through 9.
b. Compute a weighted 3-month moving average forecast for months 4 through 9. Assign weights of 0.55, 0.33, and 0.12 to the months in sequence, starting with the most recent month.
c. Compare the two forecasts by using MAD. Which forecast appears to be more accurate?
The Jersey Dairy Products Company produces cheese, which it sells to supermarkets and food processing companies. Because of concerns about cholesterol and fat in cheese, the company has seen demand for its products decline during the past decade. It is now considering introducing some alternative low-fat dairy products and wants to determine how much available plant capacity it will have next year. The company has developed an exponential smoothing forecast with a = .40 to forecast cheese demand. The actual demand and the forecasts from the model are as follows:
Assess the accuracy of the forecast model by using MAD and cumulative error. If the exponential smoothing forecast model does not appear to be accurate, determine whether a linear trend model would provide a more accurate forecast.
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Percentage of companys capital structure consists of debt
: Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at rd = 11%, and its common stock currently pays a $3.00 dividend per share (D0 = $3.00). The stock's price is currently $33.25, its dividend is expected ..
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Revenue function and cost function
: A business owner used a revenue function and a cost function to analyze his monthly sales. One month he found that with a sales volume of 600 items he had revenues of $10,200. Another month he had total costs of $4,700 on a sales volume of 400 items...
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What is the pre-tax annual rate of return on this bond
: You buy a bond for $1118 that pays $20 interest every 6 months. It will reach maturity in 9 years at which time it will return its face value of $1000 plus the final $20 interest payment. What is the pre-tax annual rate of return on this bond? Estima..
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Analyze the work-incentive effects of mitterands programs
: When the late Francois Mitter and was the president of France, he instituted a number of programs designed to appeal to his “blue-collar” constituency. He raised the income tax rate applicable to the rich and expanded the free, government-provided so..
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Compute a weighted 3-month moving average forecast
: Compute a weighted 3-month moving average forecast for months 4 through 9. Assign weights of 0.55, 0.33, and 0.12 to the months in sequence, starting with the most recent month.
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Determine the elasticity of industrys labor demand curve
: What factors determine the elasticity of industry’s labor demand curve? Based on these factors, discuss labor demand for factory line workers versus labor demand for nurses, which one would be more elastic?
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Economies of scale and diseconomies of scale
: Economies of scale and diseconomies of scale, what do these terms mean, when do they occur and how do they differ? Can you provide an example of economies and scale and dis-economies of scale.
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Public policy against the enforcement of gambling contracts
: Are legalized forms of gambling, such as state-operated lotteries, consistent with a continuing public policy against the enforcement of gambling contracts? Why or why not? Please discuss and support your comments using legal reasoning and terminolog..
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Employment and wages
: Suppose the US government requires firms to provide Workers Compensation Insurance Coverage for its employees. How does this mandate affect labor market outcomes (employment and wages) when workers’ valuation of Workers
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