Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
13th Edition
ISBN: 9780135225899
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Textbook Question
Chapter 4, Problem 4P
A check-processing center uses exponential smoothing to forecast the number of incoming checks each month. The number of checks received in June was 40 million, while the forecast was 42 million. A smoothing constant of .2 is used.
- a. What is the forecast for July?
- b. If the center received 45 million checks in July, what would be the forecast for August?
- c. Why might this be an inappropriate
forecasting method for this situation?
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A check-processing center uses exponential smooth- ing to forecast the number of incoming checks each month. The number of checks received in June was 40 million, while the fore- cast was 42 million. A smoothing constant of .2 is used.
a) What is the forecast for July?b) If the center received 45 million checks in July, what would be
the forecast for August?c) Why might this be an inappropriate forecasting method for the situation
A check-processing center uses exponential smoothing to forecast the number of incoming checks each month. The number of checks received in June was 40 million, while the forecast was 42 million. A smoothing constant of .2 is used. a) What is the forecast for July? b) If the center received 45 million checks in July, what would be the forecast for August? c) Why might this be an inappropriate forecasting method for this situation?
An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the
naive approach. The linear trend equation is F̟ = 124 + 2.1t, and it was developed using data from periods 1 through 10. Based on data
for periods 11 through 20 as shown in the table, which of these two methods has the greater accuracy if MAD and MSE are used?
(Round your intermediate calculations and final answers to 2 decimal places.)
t
Units Sold
11
144
12
146
13
152
14
142
15
152
16
149
17
152
18
154
19
20
157
164
Click here for the Excel Data File
MAD (Naive)
5.11
MAD (Linear)
5.49
MSE (Naive)
MSE (Linear)
Chapter 4 Solutions
Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
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