Develop forecasting system for plastic pellet prices

Assignment Help Operation Management

Reference no: EM131225643

A toy company buys large quantities of plastic pellets for use in the manufacture of its products. Production manager Josh Kang wants to develop a forecasting system for plastic pellet prices. The price per pound of plastic pellets has varied shown: Month Plastic Pellets Price/ Pound Month Plastic Pellets Price/ Pound 1 $ 0.39 9 0.35 2 0.41 10 0.38 3 0.45 11 0.39 4 0.44 12 0.43 5 0.40 13 0.37 6 0.41 14 0.38 7 0.38 15 0.36 8 0.36 16 0.39 A) Use exponential smoothing to forecast monthly plastic pellet prices. Compute what the forecasts would have been for all the months of historical data for α=0.1, α=0.3, and α=0.5 if assumed forecast for all α’s in the first month is $0.39. B) Which alpha value results in the last mean absolute deviation for Months 7-16? C) Use the best alpha value from part b to compute the forecasted plastic pellets price for month 17. Answer a, b, and c

Reference no: EM131225643

Questions Cloud

The intensity of rivalry among established firms : The result of examining those factors provides an approximation of the fifth factor, the intensity of rivalry among established firms, as well as the type and nature of that competition. Using Pella Window Corporation: In this post, identify the firm..

Using active and passive voice to communicate effectively : George Ellis, your friend and co-worker, has just stopped by your cubicle. He is upset because the CIO (chief information officer) complained to George’s supervisor about an e-mail George sent to the CIO. George does not understand what went wrong. A..

Visuals for allied-what are options for numbering visual : You work for Allied Distribution, a food service distributor that offers wholesale prices to a variety of customers, including restaurants, hotels, schools, and hospitals. You recently conducted a survey of your major clients and are now selecting vi..

Fundamental philosophical differences in management styles : Fundamental philosophical differences in management styles, launch and handling of products and services, marketing of products and services, and approach to e-commerce that sets one rival company apart from the other

Develop forecasting system for plastic pellet prices : A toy company buys large quantities of plastic pellets for use in the manufacture of its products. Production manager Josh Kang wants to develop a forecasting system for plastic pellet prices.

Develop wealth-transfer plan that would tax consequence : Imagine that you are an estate planner and a friend is seeking advice regarding leaving property to his children. He has accumulated approximately $10 million of property that he would like to leave to his children. Develop a wealth-transfer plan tha..

Difficulties involved in the production planning process : Based on your readings of course materials or your experience with your current or former employer what are some of the key challenges and difficulties involved in the production planning process and how would you handle those challenges

Employers have right to check into applicants backgrounds : Do you think employers have a right to check into applicants’ backgrounds? Even if there is no suspicion of misbehavior? Even if the job poses no security or sensitive risks? Even if the background check includes driving offenses and credit histories..

The reason given constitute national origin discrimination : A nursing home in Iowa, whose residents were all English-speakers and all over the age of 80, instituted a rule that required that all employees speak English while working since the residents of the nursing home were elderly and not able to understa..

User Account

All Pages