Compute the forecast for year 6 using exponential smoothing

Assignment Help Operation Management

Reference no: EM133344285

Case: The Bonavista patient transfer company is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year. The kilometers driven during the past 5 years are as follows:

Year	Distance (KM)
1	3,000
2	4,000
3	3,400
4	3,800
5	3,700

Forecast the numbers of Kilometers for next year (6th year) using a 2-year moving average.

Find the MAD based on the 2-year moving average forecast in part a [Hint: You will have only 3 years of matched data.]

Use a weighted 2-year moving average with weights of .4and .6 to forecast next year's mileage. The weight of .6 is for the most recent year). What MAD results from using this approach to forecasting? [Hint: You will have only 3 years of matched data.]

Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 3,000 miles, and a = .5

Reference no: EM133344285

Questions Cloud

How could social selling help that company sell its products : Imagine that a company was looking to sell to you. How could social selling help that company sell its products to you? Please provide at least two specific

Identify and describe the five moral dimensions : Identify and describe the five moral dimensions that are involved in political, social, and ethical issues. Of these, which do you think is the most difficult

How many times have you been in back-ups : How many times have you been in back-ups and when you get to the site, nothing is going on? It is perfectly legal; and that's the way things have been done

What about the other cash flows - are they all equally risky : Discounting the estimated salvage value at the same rate as the other cash flows -Select-is moreis lessItem 3 risky, so it is better to use -Select-a highera

Compute the forecast for year 6 using exponential smoothing : OMGT 701 Centennial College Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 3,000 miles, and a = .5

What is the optimal batch size : What is the optimal batch size and What is the variable cost and the total cost corresponding to the optimal batch size? iii) What is the maximum inventory

Calculate the expected npv and coefficient of variation : Calculate the expected NPV and coefficient of variation of this capital project. What are the different types of management options being used?

What is the sales per labour hour for restaurant : What is the sales per labour hour for Restaurant SlowFood in April - In May, the manager wants to increase her service level by increasing the number of staff

What is the overall strategic focus and direction : What is the overall strategic focus and direction of the marketing plan? In other words, what is your best recommendation for saving and/or growing this company

User Account

All Pages