Develop a POQ solution and calculate total relevant  costs for the data in the preceding table.

Manager Chris Channing of Fabric Mills, Inc., has developed the forecast shown in the table for bolts of cloth. The figures are in hundreds of bolts. The department has a regular output capacity of 275(00) bolts per month, except for the seventh month, when capacity will be 240(00) bolts. Regular output has a cost of $43 per hundred bolts. Workers can be assigned to other jobs if production is less than regular. The beginning inventory is zero bolts. Month 1 2 3 4 5 6 7 Total Forecast 275 350 225 300 280 275 270 1,975     a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Overtime is $68 per hundred bolts. Regular production can be less than regular capacity  b. Would the total cost be less with full regular production each period with no overtime, but using a subcontractor to handle the excess above regular capacity at a cost of $53 per hundred bolts? Backlogs are not allowed. The inventory carrying cost is $2 per hundred bolts. (Round…

Prepare a Demand Forecast for “Year 5” using Excel. Quarterly Data for Cars Sales     Yt Year Quarter Sales (1000s) Year 1 1 4.80   2 4.10   3 6.00   4 6.50 Year 2 1 5.80   2 5.20   3 6.80   4 7.40 Year 3 1 6.00   2 5.60   3 7.50   4 7.80 Year 4 1 6.30   2 5.90   3 8.00   4 8.40 Year 5 1     2     3     4

Understand how forecasting is essential to supply chain planning.

part b)

What exactly are CMSs? What are the advantages and disadvantages of this?

The operations manager has compiled data on demand for the two most popular books from order records for the previous 14 months, as shown in the table below. Study the forecast figures for ‘JHS Science Textbook’ from the table and determine if a demand pattern is obvious, and hence prepare a monthly forecast for the next four months for this  product.  Briefly  explain  why  you  chose  the  particular  method  used  for  this forecast.     Month JHS Science Textbook (cartons) SHS Math Textbook (cartons) 1 50 40 2 54 38 3 57 41 4 60 46 5 64 42 6 67 41 7 90* 41 8 76 47 9 79 42 10 82 43 11 85 42 12 87 49 13 92 43 14 96 44 *Unusual order due to flooding of a major distributor’s warehouse.