0 VIEW 126% Zoom + Adc Poc T Tex: = Format Document Insert Table Chart Shape Comment Collaborate Module 2 Assignment DEMAND FORECASTING CASE STUDY You have been hired as a demand planning intern for the Maui Jim Inc. They want you to develop a forecast for their Longboard style of sunglasses. The goal is to delermine how many pair they will produce to meet retailer demand in February 2021. During your first meeting. you were handed some data to work with and the product team talked about the company's upcoming promotional blitz to support Spring Break 21 in major vorstinn restinatione C ID 1 Month 2 August 2020 3 September 2020 4 October 2020 November 2020 U December 2020 7 January 2021 Forecast 5,800 5,000 4,500 3,000 Demand 5,400 3.800 3.200 3.300 4,500 4,400 3,900 4,300 Other useful information about the company Intemal production capacity = 3,500 units per month under normal conditions Historical forecasting error = + 300 units per month 1. COMPLETE THE QUESTIONS FOR THIS ASSIGNMENT 2. USE YOUR WORK TO COMPLETE THE CANVAS ACTIVITY QUIZ LABELED ASSIGNMENT 2 ANSWERS. Forecasting Concept Questions Simple forecasting methods like the three month moving average work best with what type of demand? Given that forecasts are never perfect, what can a company do to understand their level of performance and improve? 0 126% VIEW Zoom + Add Page T Insert ul Chart = Format Document Shape Media Comment Colaborate Module 2 Assignment Calculate the demand forecast for February 2021 using the methods listed below. Work with the data provided in the table on the previous page. Three Month Simple Moving Average Three-Month Weighted Moving Average Weight factors - 1 = 5 t-2.3 t-3 = 2 Exponential Smoothing Alpha smoothing constant = .6 Which method do you recommend that the company use when forecasting February 2021 demand? Explain why you selected this method. T 0 126% VIEW Zoom + Add Page ul Chart 0 Colaborate = Format Document Insert Tabic Shape Media Comment Module 2 Assignment Evaluate the company's capacity to build the amount of product that you have forecasted. Does your organization have enough capacity serve demand in February 2021? If you your forecast does not match capacity, what can be done in the short run to either deal with excess capacity or a shortage of capacity? Evaluate the company's forecast accuracy over the last four months. Mean Absolute Deviation How well is the company doing in terms of forecast accuracy? 0 VIEW 126% Zoom + Adc Poc T Tex: = Format Document Insert Table Chart Shape Comment Collaborate Module 2 Assignment DEMAND FORECASTING CASE STUDY You have been hired as a demand planning intern for the Maui Jim Inc. They want you to develop a forecast for their Longboard style of sunglasses. The goal is to delermine how many pair they will produce to meet retailer demand in February 2021. During your first meeting. you were handed some data to work with and the product team talked about the company's upcoming promotional blitz to support Spring Break 21 in major vorstinn restinatione C ID 1 Month 2 August 2020 3 September 2020 4 October 2020 November 2020 U December 2020 7 January 2021 Forecast 5,800 5,000 4,500 3,000 Demand 5,400 3.800 3.200 3.300 4,500 4,400 3,900 4,300 Other useful information about the company Intemal production capacity = 3,500 units per month under normal conditions Historical forecasting error = + 300 units per month 1. COMPLETE THE QUESTIONS FOR THIS ASSIGNMENT 2. USE YOUR WORK TO COMPLETE THE CANVAS ACTIVITY QUIZ LABELED ASSIGNMENT 2 ANSWERS. Forecasting Concept Questions Simple forecasting methods like the three month moving average work best with what type of demand? Given that forecasts are never perfect, what can a company do to understand their level of performance and improve? 0 126% VIEW Zoom + Add Page T Insert ul Chart = Format Document Shape Media Comment Colaborate Module 2 Assignment Calculate the demand forecast for February 2021 using the methods listed below. Work with the data provided in the table on the previous page. Three Month Simple Moving Average Three-Month Weighted Moving Average Weight factors - 1 = 5 t-2.3 t-3 = 2 Exponential Smoothing Alpha smoothing constant = .6 Which method do you recommend that the company use when forecasting February 2021 demand? Explain why you selected this method. T 0 126% VIEW Zoom + Add Page ul Chart 0 Colaborate = Format Document Insert Tabic Shape Media Comment Module 2 Assignment Evaluate the company's capacity to build the amount of product that you have forecasted. Does your organization have enough capacity serve demand in February 2021? If you your forecast does not match capacity, what can be done in the short run to either deal with excess capacity or a shortage of capacity? Evaluate the company's forecast accuracy over the last four months. Mean Absolute Deviation How well is the company doing in terms of forecast accuracy