Assignment 1 Course: Operations Management Date: 1st March 2021 Q1: Use simple exponential smoothing with a=0.75 to forecast the air-condition sales for February through May. Assume that the forecast for January was for 25 units. [4 marks] Month January February March. April. Air-condition sales 28 72 98 126 Q2: Engineer Ahmad has determined that the annual demand for number 6 screws is 100,000 screws. Ahmad, who works in his brother's hardware store, is in charge of purchasing. He estimates that it costs $10 every time an order is placed. This cost includes his wages, the cost of the forms used in placing the order, and so on. Furthermore, he estimates that the cost of carrying one screw in inventory for a year is one-half of 1 cent. Assume that the demand is constant throughout the year. [6 marks] (a) How many number 6 screws should Ahmad order at a time if he wishes to minimize total inventory cost? (b) How many orders per year would be placed? What would the annual ordering cost be? (c) What would the average inventory be? What would the annual holding cost be