Deliberate the strategic importance of forecasting

Assignment Help Operation Research
Reference no: EM132124

QUESTION 1

(a) Explain the meaning of forecasting. Support your answer by means of appropriate examples in the business context

(b) Deliberate the strategic importance of forecasting

(c) Sales of automobile batteries have grown progressively during the past five years, as shown by the table below.

Year

Sales

1

450

2

495

3

518

4

563

5

584

6

?

The sales manager had predicted previously the business started, that year 1's sales would be 410 air conditioners.

(i) Using smoothing constants of 0.6 and 0.9, develop a forecast for the sales of

Cool- Man air conditioners for years 2 through 6. (Use Ft = Ft-1 + α ( At-1 - Ft-1 )

(ii) Define which smoothing constant gives the most accurate forecast.

QUESTION 2

(a) Describe three basic functions of inventory

(b) Describe understand by the term Economic Order Quantity (EOQ)?

(c) Sketch three assumptions made in the analysis of the EOQ model.

(d) A distributor of electronic components, has a contract with a manufacturer to be supplied with 9600 units per year to a dealer. The distributor estimates that the cost is $50 every time an order is placed while the annual holding cost is estimated to be 50% of the unit price.

The company is negotiating with the manufacturer for the following quantity discounts:

Lot size per order

Price per unit

1 - 499

$ 17.00

500 - 999

$ 16.75

1000+

$ 16.50

(i) Define the economic order quantity?

(ii) Define the optimal order quantity?

(iii) Define the total annual inventory cost?

QUESTION 3

(a) Explain the meaning and importance of operations management. Support your answer by appropriate examples

(b) By referring to an organization of choice, define the Input/Transformation

Process/Output Model used in operations management

Reference no: EM132124

Questions Cloud

How utility functions could affect decision making process : One of the executives of Ford has been saying that: "Risk management is a costly technique that has limited benefits." Discuss. Demonstrate how utility functions could affect decision making process regarding risk of Ford
Explaining how securitization operates : Banks find it more profitable to lend money as the margin on lending is much higher than any other banking activity. However, banks have to assess credits risks and take necessary measures to reduce and mitigate their risks. After explaining ho..
Why are incoterms important in international trade : Why are incoterms important in international trade?, Discuss the risks that an exporter faces when dealing on open account, Explain the risk management process and the importance of reporting and communication in this process.
Explain the distinction between prediction and forecasting : Explain the distinction between Prediction and Forecasting?, Why Forecasting is significant in decision making?, Define Delphi technique of Forecasting. What are the various decisions operation managers are called upon to make in the manufacturing ..
Deliberate the strategic importance of forecasting : Explain the meaning of forecasting. Support your answer by means of appropriate examples in the business context, Deliberate the strategic importance of forecasting
Explain what is meant by capacity management : A customer waiting in line is potentially a lost customer. Choose a service organisation of your choice, suggest and explain the strategies that operations managers could use to make waiting less painful, Explain what is meant by capacity manageme..
Describe the needs that operational managers : From the perspective of the transformation process, explain the major differences that exist between the service industries and manufacturing industries, Describe the needs that operational managers are attempting to satisfy by the introduction of ..
Quality and productivity are the 2 sides of the same coin : E Deming was against performance appraisal. You are required to comment on the arguments put forward by E Deming, Quality and productivity are the 2 sides of the same coin. Comment on this statement
Identify and explain the reasons why employees resist change : There are multiple reasons why some people resist change. Adding to this complexity is the fact that sometimes the stated reason hides the real and more deeply personal reason. It is also argued that resistance to change is a normal phenomenon in ..

Reviews

Write a Review

Operation Research Questions & Answers

  Bioimetic vascular network design

What kind of material is needed for bioimetic vascular network design?

  Write a report on im operations governance

Write a report on IM operations governance

  Analyse the role of different stakeholders in tourism

Critically analyse the role of different stakeholders in tourism planning and policy

  Evaluate business value

How can internet technologies be involved in improving a process in one of the functions of business? Choose one example and evaluate its business value.

  Case study:the british airways story

Case study:The British Airways story

  Prepare a research proposal

Prepare a Research Proposal based on a business issue.

  Create the feasible solution space

Solve the following problem graphically and create the feasible solution space.

  Calculate annual rate of return

No additional fixed costs would be incurred if this proposal is accepted

  Compute the company''s predetermined overhead rate

Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year

  Determine the probability distribution

Determine the probability distribution for demand using the given data.

  Give both a high-level algorithm and an implementation

Give both a high-level algorithm and an implementation (\bubble diagram") of a Turing machine for the language

  Red brand canners

Red Brand Canners Gordon asked Myers about the demand for tomato products for the coming year. Myers replied that they could sell all of the whole canned tomatoes they could produce.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd