The assumptions of the production order quantity model are

Reference no: EM13620983

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50.09, holding cost is $12 per unit per year, and the production rate is 36500 per year. Working day is 300. The production order quantity for this problem is approximately

a. 174

b. 99

c. 184

d. 164

e. 134

Joe, a sales manager at a car dealership, is trying to convince his general manager, Bill, that they have increasing sales. As a proof, he does a forecasting following the Holt's method. What are the smoothing constant Gamma using MSE as the measure?

Year	Cars
2000	3890
2001	3993
2002	4003
2003	3903
2004	4115
2005	4502
2006	4553
2007	4359
2008	4559
2009	4907

Select one:

a. 0.118

b. 0.342

c. 0.887

d. 0

e. 0.453

Reference no: EM13620983

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