2. The historical demand for a product is below. Please forecast the demand in April.

Month Sales (a) Use a 3-month simple moving average.

1 (January) 26 (b) Use a 3-month weighted moving average with weights of 0.6, 0.3, and 0.1.

2 (February) 32 (c) Use exponential smoothing with a = 0.8 and a March forecast = 36.

3 (March) 38 (d) Find trend line y = a+bx, and then forecast demand. (3 points)

3. Here are the precedence requirements, normal and crash times and costs for a construction project.

Preceding Time (weeks) Cost ($)

Activity Activity Normal Crash Normal Crash

A - 4 3 10,000 11,000

B A 3 2 6,000 9,000

C A 5 1 4,000 6,000

D B 5 3 14,000 18,000

E D,C 3 1 9,000 10,000

(a) Draw the AON network, find the critical path and the estimated completion time. (2 points)

(b) How much slack time does Activity C have without delaying the project completion time?

(c) To shorten the project by one week, which activity would be shortened and what would the final total project cost be? (2 points)