FREE Trial

RAP Computers assembles computers from generic parts it purchases at discount and sells the units via phone orders it receives

Question:

RAP Computers assembles computers from generic parts it purchases at discount and sells the units via phone orders it receives from customers responding to their ads in trade journals. The business has developed an exponential smoothing forecast model to forecast future computer demand. Actual demand for their computers for the past eight months is as follows:

RAP Computers assembles computers from generic parts it purchase

a. Using the measure of forecast accuracy of your choice, ascertain if the forecast appears to be accurate.
b. Determine if a three-month moving average would provide a better forecast.
c. Use a tracking signal to monitor the forecast in part (a) forbias.

Transcribed Image Text:

Month March April May Demand 120 110 150 130 160 165 140 155 Forecast Juty August September October November 120.0 116.0 129.6 129.7 141.8 151.1 146.7 150.0

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 77% (9 reviews)

a Running Cumulative Tracking Month Demand Forecast Error MAD Error Signal March 120 x x x x x x Apr…View the full answer


answer-question
Answered By
tutor-profile-image
HIMANI KALRA
i have done my graduation in electronics engineering and after that done my post graduation in MBA and finally got job in one of the reputed banks as a assistant manager . also worked previously as a financial analyst in one of the renowned company. side by side due to my interest in studies and enhancing my skills more i try to teach and update myself too with the current education criteria and available syllabus.
0.00 0 Reviews 10+ Question Solved
Related Book For  answer-question
Operations Management Creating Value Along the Supply Chain

Operations Management Creating Value Along the Supply Chain

ISBN: 978-0470525906

7th Edition

Authors: Roberta S. Russell, Bernard W. Taylor

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: October 03, 2012 07:07:59
See More Questions

Students also viewed these Management Leadership questions

Q:
RAP Computers assembles personal computers from generic parts it purchases at a discount, and it sells the units by phone orders it receives from customers responding to the companys ads in trade...
A:
a D t F t Running Cumulative Tracking Month Demand Forecast Error MAD Error Signal......
Q:
a. Create a 4-period moving average forecast, an exponential smoothing forecast with alpha=0.2, and a linear trend forecast for your data. b. Calculate the MSE and MAD for each. c. Plot the original...
A:
Click to View...
Q:
Develop an adjusted exponential smoothing forecast model ( = 0.40 and = 0.40) for the data in Problem 12-39 to forecast seat occupancy, and compare its accuracy with the seasonally adjusted model...
A:
The adjusted exponentially smoothed forecast a 0 4 b 0 4......
Q:
You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10 million. Investment A will generate $2 million per year (starting at the end...
A:
Plan Compute the timeline and the NPV and IRR for each project Decide which o......
Q:
If A = {w, x, y, z}, determine the number of relations on A that are (a) Reflexive; (b) Symmetric; (c) Reflexive and symmetric; (d) Reflexive and contain (x, y); (e) Symmetric and contain (x, y); (f)...
A:
a 2 12 b 2 4 2......
Q:
The Ladies Professional Golfers Association (LPGA) maintains statistics on performance and earnings for members of the LPGA Tour. Year-end performance statistics for the 30 players who had the...
A:
a The Minitab output is shown below The regression equation is Scoring Avg 58 1 10 7 Greens in Reg 1......
Q:
Laurens Beauty Boutique has experienced the following weekly sales: Forecast sales for week 6 using the nave method, a simple average, and a three-period moving average. Week 1 2 3 4 5 Sales 420 382...
A:
Nave Method F A 395 Simple Av......
Q:
Comparison of Regression Equations Friendly Bank is attempting to determine the cost behavior of its small business lending operations. One of the major activities is the application activity. Two...
A:
1 Regression output from spreadsheet application hours as X variable SUMMARY OUTPUT Regression Stati......
Q:
The following is a toy web graph with hubs C, D, E and F, and authorities A, B, and G. a) Show the (hubs and authorities) values obtained by running two rounds of the hubs and authorities algorithm...
A:
Click to View...
Q:
Suppose you work for a major airline and are given the job of writing the algorithm for processing upgrades into first class on various flights. Any frequent flyer can request an upgrade for his or...
A:
Store upgrade requests in a priority queue Q that is implemented......
Q:
Monitor the adjusted exponential smoothing forecast in Problem 12-15 for bias using a tracking signal and a control chart with 3 MAD.
A:
Cumulative Running Tracking Year Error Error MAD Signal 1 x x x 2 250 250 250 00 1 00 3 300......
Q:
Develop an exponential smoothing forecast with = 0.20 for the demand data in Problem 12-1. Compare this forecast with the three-month moving average computed in 12-1(a) using MAD and indicate which...
A:
The 3 month moving average forecast appears to be more accurate Month Demand Forecast Mo......
Q:
Consider the same bill of material and information in Problem #8 but assume that two of component B are needed for each A, and that the gross requirement for A is 220 units. Compute the net...
A:
Item On Hand Inventory Dependent Demand Calculations A 40 220 40......
Q:
Define the term accounting.
A:
Accounting is the systematic process of recording summarizing analyzing and interpreting financial transactions and information of an organization or......
Q:
Potential investors would be interested in the past performance of a business. Provide reasons why.
A:
Potential investors are interested in the past performance of a business for several important reasons Examining historical data provides valuable insights into a company s financial health operationa......
Q:
Provide three to five examples of economic decisions that people are confronted with daily.
A:
here are three to five examples of economic decisions that people face on a daily basis Purchasing Goods and Services Every day individuals must decid......
Q:
You are the accounts payable clerk of Must Balance Ltd and you receive the following statement from All Right (Pty) Ltd. The account of All Right (Pty) Ltd in your books is shown as: You are able to...
A:
reconciliation of the account for All Right Pty Ltd in t......
Q:
Discuss whether it is possible for a business to survive if it makes no profits.
A:
It is theoretically possible for a business to survive without making profits but the long term sustainability and viability of such a business would be severely challenged A business primarily exists......
Q:
Find the perimeter of each triangle. Fig. 2.41(d) 0.535 in. (d) 0.862 in. 0.684 in.
A:
The perimeter of a triangle is the sum of the le......
Q:
Why is homeostasis defined as the "relative constancy of the internal environments? Does negative feedback or positive feedback tend to promote homeostasis?
A:
Homeostasis is defined as relative constancy of internal environment because this mechanism adjusts......
Q:
What are the seven wastes that Toyota Motor Company addresses in its improvement processes?
A:
1 Waste of overproduction 2 Waste o......
Q:
What is a kanban? How is it related to inventory movement through a process?
A:
A kanban card system is a method for controlling the flow of......
Q:
The costs of inspection for four product attributes A, B, C, and D are $15, $5, $20, and $10, respectively. The cost of failure if any of these attributes fails is $200 (i.e., full replacement cost...
A:
C B D L S 15 1 C 0 200 0 10 25 0 8 kanban......
Programming In Scala 2nd Edition - ISBN: 0981531644 - Free Book