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The actual demand for the patients at Omaha Emergency Medical Clinic for the first six weeks of this year follows:
Week Actual # of patients1 652 623 704 485 636 52
Clinic administrator Marc Schniederjans wants you to forecast patient demand at the clinic for week 7 by using this data. You decide to use a weighted moving average method to find this forecast. Your method uses four actual demand levels, with weights of 0.333 on the present period, 0.25 one period ago, 0.25 two periods ago, and 0.167 three periods ago.
a) What is the value of your forecast?
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What is the fixed cost for the regular-time option? Overtime option? Let w be the number of weeks of the high demand (rather than using Q for the break-even quantity)
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