Spares inventory management is a cost-intensive investment for a wind farm operator; however, accurate forecasting techniques...

 

 

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Spares inventory management is a cost-intensive investment for a wind farm operator; however, accurate forecasting techniques can help reduce the number of spare parts in the inyentory and the cost of maintaining it. You are part of a team tasked to optimize the spares inventory and the associated costs based on the previous year's data. Table 1 below shows the number of spares in the stock each year for the last ten years and the associated cost. Based on this data, can we forecast the reserves need in the next fifteen years (lifetime of the wind farm) and its associated financial value? To complete this task, do the following tasks in sequence. 1. Using any one mathematical forecasting method, estimate the spares requirement for the next fifteen years. 2. Using the same mathematical forecasting method used in part (1) above, estimate the cost of maintaining the inventory for the next fifteen years. (10 Marks) (10 Marks) Years Number of Spares in Inventory Cost of maintaining spares 65 $168,546 $188,965 $165,545 $194,574 1 73 3 88 4 85 93 $206,445 $176,500 $185,000 $256,450 $225,000 $216,529 6. 81 7 76 8. 96 116 10 108 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Spares inventory management is a cost-intensive investment for a wind farm operator; however, accurate forecasting techniques can help reduce the number of spare parts in the inyentory and the cost of maintaining it. You are part of a team tasked to optimize the spares inventory and the associated costs based on the previous year's data. Table 1 below shows the number of spares in the stock each year for the last ten years and the associated cost. Based on this data, can we forecast the reserves need in the next fifteen years (lifetime of the wind farm) and its associated financial value? To complete this task, do the following tasks in sequence. 1. Using any one mathematical forecasting method, estimate the spares requirement for the next fifteen years. 2. Using the same mathematical forecasting method used in part (1) above, estimate the cost of maintaining the inventory for the next fifteen years. (10 Marks) (10 Marks) Years Number of Spares in Inventory Cost of maintaining spares 65 $168,546 $188,965 $165,545 $194,574 1 73 3 88 4 85 93 $206,445 $176,500 $185,000 $256,450 $225,000 $216,529 6. 81 7 76 8. 96 116 10 108 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Answer rating: 100% (QA)

Solution This problem can be solved using Linear Regression For that will p... View the full answer