Sales for the past five months have been 15, 18, 12, 17, 13. Use the following methods to obtain a forecast of sales for the next month. a. The last-value method b. The averaging method c. The moving –average method with three months.

Sales for the past five months have been 15, 18, 12, 17, 13. Use the following methods to obtain a forecast of sales for the next month. a. The last-value method b. The averaging method c. The moving –average method with three months.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section: Chapter Questions

Problem 42P: The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars)...

See similar textbooks

Related questions

Q: What is operational research

A: Management specifically the art of doing things by others every organization has its management for…

Q: exxxplain the role of supplier performance metrics in supplier management.

A: Supplier management encompasses all of the business operations and initiatives that manage a…

Q: Case 2: You have been put in charge of a massive undertaking at your current UWI campus. Funds have…

A: Instrumented Facility Technology: Hawk-Eye InnovationsInstrumented Equipment: Smart Cricket…

Q: What is the bottleneck time of this process? a 4 min b 15 min c 3 min d 18 min e 3.75 min

A: Parallel resources means two or more resources do the same operation simultaneously. The product…

Q: Hale's TV Production is considering producing a pilot for a comedy series in the hope of selling it…

A: The detailed solution is provided below.Explanation: 2) WHAT IS THE RECOMMENDED DECISION IF AGENCY…

Q: An anti-modification clause: O a) prevents the terms of a contract from being changed by repeated…

A: The objective of the question is to identify the correct definition of an anti-modification clause…

Q: Discuss the benefits of implementing a vendor rating system for procurement management.

A: Vendor management refers to the process of selecting, monitoring, and evaluating an organization's…

Q: 2. If the NCAA licenses O'Bannon's image for (hypothetically) $1 million dollars and UCLA awards…

A: The question is asking whether the compensation provided to O'Bannon, in the form of a full cost of…

Q: Compare and contrast the following two situations: A company's lean system stress teamwork.…

A: Both scenarios involve the implementation of a system that emphasizes teamwork and collective…

Q: Forrester and Cohen is a small accounting firm managed by Joseph Cohen since the retirement in…

A: Aggregate plan is a planning done by Operations managers to make the most of the required production…

Q: Data collected on the yearly registrations for a Six Sigma seminar at the Quality College are shown…

A: Let me state the given data, YearRegistrations1525334651169778991310161117Here, I will apply a…

Q: Consider an assembly line with a single shift per day and each shift runs 8 hours with 2 tea breaks…

A: Availability takes into account the planned production time and subtracts any downtime. The formula…

Q: Products or technologies that have not been tested against customer needs do not generate value. A.…

A: In today's competitive market landscape, every organization must understand customer needs, Knowing…

Q: R7.3. A farm sells its own produce in its large retail and wholesale outlets. It can produce…

A: Linear programming is a mathematical method used to find the best possible outcome or solution from…

Q: Appropriate motives for adopting ISO 9000 include which of the following? To create a quality…

A: Operation management is an aspect of management that deals with the management of the production,…

Q: A seafood distribution company specializes in delivering fresh lobsters from their harvesting sites…

A: Find the given details below:

Q: Zeus Computer Chips, Incorporated, used to have major contracts to produce the Centrino-type chips.…

A: QuarterPeriodDemand Two Years AgoI14820II23520III34320IV43020Last…

Q: How does production scheduling differ in make-to-order versus make-to-stock environments?

A: The process of deciding when things will be made in order to maximize efficiency and minimize…

Q: Piepkorn Manufacturing Working Capital Management Case Study

A: Piepkorn Manufacturing Working Capital Management Case Study:Introduction to Working Capital…

Q: A warehouse storage building company must determine how many storage sheds of each size-large or…

A: Linear programming is a mathematical method used to find the best possible outcome or solution from…

Q: The results of inspection of DNA samples taken over the past 10 days are given below. Sample size is…

A: Answer UCLP = 0.13LCLP = 0.00 Explanation:SolutionI have solved this problem using Excel and Here…

Q: d iscuss the role of supervisors or managers in conducting traditional performance reviews.

A: Performance evaluations are essential to an employee's professional development in an organisation…

Q: Question 1 The process for handling insurance claims at a branch of the Green Insurance Company…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A graduate research assistant "moonlights" at the short order counter in the student union snack bar…

A: Utilization is a key concept in production management since it can impact the cost per unit of…

Q: ased on the Mt. Kumar Road project in Grenada, critically assess in paragraph format whether or not…

A: Infrastructure projects are vital for economic development and public well-being. Grenada's Mt.…

Q: The following linear programming formulation is for a transshipment problem. Min 11x13+ 12x14 +…

A: Min11x13+12x14+10x21+8x34+10x35+11x42+9x45+12x52s.t.x13+x14−x21≤5x21−x42−x52≤3x13−x34−x35≤6−x14−x34+…

Q: esearch on the direction of influence indicates Group of answer choices individuals at all levels of…

A: Influence dynamics within organizations play a crucial role in decision-making processes and…

Q: explain the key components of operations planning in a manufacturing environment.

A: Operations planning is a critical aspect of manufacturing management, involving the strategic…

Q: Supply chain management is a crucial aspect of modern business operations that involves the…

A: Supply chain management is the aspect of management that deals with all the movement or flow that…

Q: True or false? Operations management is focused primarily on the application of technology in…

A: Operation management is a process that involves shaping, running, and maintaining processes which…

Q: B C 1 2 D E Historical Price Data Seed Oil Mash Average Price Average Price Average Price 3…

A: Without further context, it's not possible to provide a more specific interpretation of the…

Q: An avant-garde clothing manufacturer runs a series of high-profile, risque ads on a billboard on…

A: A Pareto chart can be defined as a graphical tool that is used to control quality and make…

Q: Alpha Sennon | Ashoka | Everyone a Changemaker Identify and discuss at least 4 Characteristics and…

A: Alpha Sennon exemplifies the traits and skill sets commonly associated with successful social…

Q: Q3) The cost for a product B is 18 TL per unit. Holding cost is 16 TL per unit per quarter and order…

A: Inventory management is part of the production management of a firm involving collecting organizing…

Q: Development of Version 2.0 of a particular accounting software product is being considered by Jose…

A: The objective of the question is to determine the project length, total cost, the activity to be…

Q: 1.) THI produces a GPS device that is becoming popular in parts of Scandinavia. When Thaarugo…

A: Find the given details below:

Q: Discuss the relative merits of internal versus external recruitment. Give an example of a situation…

A: The objective of this question is to understand the advantages of internal and external recruitment…

Q: Briefly enumerate w hat are the benefits of job rotation programs for skill development of…

A: Job rotation programs include methodically moving employees through various roles and…

Q: Suppose that shipments are not allowed between warehouse 1 and store 2 or between warehouse 2 and…

A: Linear programming helps us to find the optimal solution/best outcome, with the given constraints.We…

Q: ow cultural or individual biases impact ethical decision about global warming?

A: Ethical decision-making regarding global warming is influenced by a multitude of factors, including…

Q: Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care…

A: The objective of this question is to formulate the problem as a linear programming problem, solve it…

Q: Standard Time: (2) The average observed times of performing three elements in succession are 0.8,…

A: The observed time of the elements is given as follows.Element 1=0.8 minutes.Element 2=0.5…

Q: Strategic management is the process of formulating, implementing, and evaluating long-term…

A: Strategic management, in other words, refers to a total of all ways including planning,…

Q: Complete a fish-bone chart explaining how a pizza delivery can arrive late on a Friday or Saturday.…

A: A fishbone diagram is the aspect of project management that presents a visual diagram of the…

Q: How do production plants address issues related to product quality and customer satisfaction?

A: In the competitive manufacturing landscape, both product quality and customer satisfaction are to be…

Q: What are some of the Organizational Behaviors & Effectiveness nuances?

A: Organizational behavior is a field of study that investigates the impact that individuals, groups,…

Q: Consider a production process described by the following flowchart, on which the process time of…

A: Given, a production process flowchart.Station Station Station The fixed cost for building the…

Q: Operations Strategy: Discuss the different competitive priorities (e.g., cost, quality, delivery)…

A: The objective of the question is to understand the different competitive priorities that companies…

Q: The following commercial risks have been identified, along with the associated Probability (P) and…

A: Risk Management is the part of management that deals with controlling the risks and threats to the…

Q: Scenar A company faces the aggregate planning problem shown in the table below. Cost of regular…

A: Cost of regular production = $8 per unitCost of overtime = $15 per unitCost of subcontracting = $ 12…

Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

Sales for the past five months have been 15, 18, 12, 17, 13.
Use the following methods to obtain a forecast of sales for the next month.
a. The last-value method
b. The averaging method
c. The moving –average method with three months.

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: The Last-Value Method:

VIEW

Step 2: The Averaging Method:

VIEW

Step 3: The Moving-Average Method with Three Months:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.

Similar questions

The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars) through credit unions. a. Use these data to forecast consumer revolving credit through credit unions for the next 12 months. Do it in two ways. First, fit an exponential trend to the series. Second, use Holts method with optimized smoothing constants. b. Which of these two methods appears to provide the best forecasts? Answer by comparing their MAPE values.
The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six months of observations for validation purposes, use the method of moving averages with a carefully chosen span to forecast U.S. retail sales in the next year. Comment on the performance of your model. What makes this time series more challenging to forecast?
The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels. Management is trying to decide whether direct labor hours (DLH) or units produced is the better measure of activity for the firm. Monthly data for the preceding 24 months appear in the file P13_40.xlsx. Use regression analysis to determine which measure, DLH or Units (or both), should be used for the budget. How would the regression equation be used to obtain the budget for the firms overhead costs?
The file P13_26.xlsx contains the monthly number of airline tickets sold by the CareFree Travel Agency. a. Create a time series chart of the data. Based on what you see, which of the exponential smoothing models do you think will provide the best forecasting model? Why? b. Use simple exponential smoothing to forecast these data, using a smoothing constant of 0.1. c. Repeat part b, but search for the smoothing constant that makes RMSE as small as possible. Does it make much of an improvement over the model in part b?
Amazon finds that sales in July are much greater relative to other months because of the Amazon Prime days in that month. Assuming that an exponential smoothing model is used for forecasting sales, what should the company best do to make the forecast for the next month (Aug) more reflective of reality? Please pick from the provided options. F t+1 = αDt + (1-α) Ft increase value of alpha decrease value of alpha stay with the same alpha decrease the expected forecast for the current month (Ft) On hearing our forecast, our clients probe - how sure are we about the forecast? Which measure of errror (among those stated below) should we best use to respond? a. Root MSE (RMSE) b. Mean absolute percentage error (MAPE) c. Mean forecast error (Avg. error) d. Cumulative forecast error (CFE)
9) Gasoline sales Times Series week sales (1000s of gallons 1 17 2 21 3 19 4 23 5 18 6 16 7 20 8 18 9 22 10 20 11 15 12 22 With the above gasoline time series data, show the exponential smoothing forecast using alpha = 0.1 i)Applying the MSE measure of forecast accuracy, would you prefer a smoothing constant of Alpha= 0.1 or alpha=0.2 for the gasoline sales time series? ii)Are the results the same if you apply MAE as the measure of accuracy? iii)What are the results if MAPE is used?
Centerville Bikes and Stuff (CBS) sells motorcycles and accessories. The number of helmets sold by CBS per week for the past six weeks follows. Week 1 2 3 4 5 6 Value 19 14 15 12 18 13 Using the naive method (most recent value) as the forecast for the next week, compute the following measures of forecast accuracy. (a) mean absolute error MAE = (b) mean squared error MSE = (c) mean absolute percentage error (Round your answer to two decimal places.) MAPE = % (d) What is the forecast for week 7?
b) Use exponential smoothing with a smoothing constant of 0.30 to forecast the sales. Assume that last period’s forecast for month 1 is equal to actual to begin the procedure. b. Which method do you think is best? Is this an improvement over the weighted average- use MAD only ?
Please help with the correct answers in details: Centerville Bikes and Stuff (CBS) sells motorcycles and accessories. The number of helmets sold by CBS per week for the past six weeks follows. Week 1 2 3 4 5 6 Value 19 12 17 10 18 15 Using the naive method (most recent value) as the forecast for the next week, compute the following measures of forecast accuracy. (a) mean absolute error MAE = (b) mean squared error MSE = (c) mean absolute percentage error (Round your answer to two decimal places.) MAPE = % (d) What is the forecast for week 7?
The Yummy Ice Cream Company uses the exponential smoothing method. Last week the forecast was 100,000 gallons of ice cream, and 90,000 gallons was actually sold.a. Using α = .1, prepare a forecast for next week.b. Calculate the forecast using α = .2 and α = .3. Which value of α gives the best forecast, assuming actual demand is 95,000 gallons?
PLEASE CHOOSE ONE ANSWER AND CLARIFY THE CHOICE A quantitative forecasting class assumes that sales (or other items to be forecast) follow a repetitive pattern over time. When a retailer uses daily sales of each product to identify patterns and to forecast inventory requirements, this is an example of: A::a deterministic model B::a causal model C::a time series forecasting technique D::a qualitative model “A” items are high-dollar value items which represent a small portion (usually 10-20 percent) of requisitions, purchase orders, and inventory items, but a large portion of annual spend (usually 70-80 percent). “A” items in ABC analysis are: A::reviewed infrequently B::normally carried in large quantities C::stored in a relatively insecure warehouse D::particularly critical in financial terms Decoupling inventories are carried __________________________________. The amounts and locations of raw material, work-in-process, and finished goods decoupling inventories depend on…
Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past 5 years (see table below). Year Sales 1 450 2 502 3 520 4 570 5 575 a) Forecasted sales for year 6 using the trend projection (linear regression) method aresales (round your response to one decimal place). b) The MAD for a linear regression forecast is nothing sales (round your response to one decimal place).