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Chapter 13 -Problem 17 Operations Management for Competitive

Ch. 13, 14, & 16 of Operations Management for Competitive Advantage.

Chapter 13:
a. From the choice of simple moving average, weighted moving average, exponential smoothing, and linear regression analysis, which forecasting technique would you consider the most accurate? Why?

b. Complete Problem 17 - be sure to show calculations

Chapter 13 - Problem 17

Historical demand for a product is as follows:

April 60
May 55
June 75
July 60
August 80
September 75

a. Using a simple four-month moving average, calculate a forecast for October.

b. Using single exponential smoothing with α = 0.2 and a September forecast = 65, calculate a forecast for October.

c. Using simple linear regression, calculate the trend line for the historical data. Say the X axis is April = 1, May = 2, and so on, while the Y axis is demand.

d. Calculate a forecast for October.

Solution Summary

A Complete, Neat and Step-by-step Solution is provided in the attached file for Problem 17.