Share
Explore BrainMass

# Suppliers and forecasting

1. Should a firm attempt to have fewer or more suppliers? What are the advantages and disadvantages of each approach?

2. Calculate and answer parts a through d. Include all calculations and spreadsheets in your post. Explain why the moving average method was used instead of another forecasting method. What might be another forecasting method that could prove to be just as useful? Your initial post should be 200-250 words.

The figures below indicate the number of mergers that took place in the savings and loan industry over a 12-year period.

Year Mergers Year Mergers
2000 46 2006 83
2001 46 2007 123
2002 62 2008 97
2003 45 2009 186
2004 64 2010 225
2005 61 2011 240

a) Calculate a 5-year moving average to forecast the number of mergers for 2012.

b) Use the moving average technique to determine the forecast for 2005 to 2011. Calculate measurement error using MSE and MAD.

c) Calculate a 5-year weighted moving average to forecast the number of mergers for 2012. Use weights of 0.10, 0.15, 0.20, 0.25, and 0.30, with the most recent year weighted being the largest.

d) Use regression analysis to forecast the number of mergers in 2012.

#### Solution Preview

See the attached file.

Suppliers and forecasting

1. Should a firm attempt to have fewer or more suppliers? What are the advantages and disadvantages of each approach?

A firm should have a small number of suppliers. Supply Chain Management has an initiative that the company should create partnerships with their suppliers, which will generate a better working relationship. The relationship should be setup throughout the organization throughout the various distribution channels to ensure that the every member of the channel can gain a benefit from reduce total costs and increase the effectiveness via the marketplace. Every member of the channel goes from suppliers to end users. The partnerships will allow the firm and supplier to work together on initiatives and come up with the best ...

#### Solution Summary

The solution discusses suppliers and forecasting.

\$2.19