Given the table below for a valuable item,

1. calculate the forecast for periods 5,6 using a moving average forecast of three periods
2. compute the MAD, MSD, MAPE,
3. compute the tracking signal, mention if an action needs to be taken above five (5).

Period	Actual	Fcast 1	|A-F1|	(A-F1)^2	MAPE	MSE	MAD
1	112.15
2	112.26
3	113.22
4	113.29
5	113.9
6	114.11

Given the table below for a valuable item,

1. calculate the forecast for periods 5,6 using a moving average forecast of three periods
2. compute the MAD, MSD, MAPE,
3. compute the tracking signal, mention if an action needs to be taken above five (5).

Period	Actual	Fcast 1	|A-F1|	(A-F1)^2	MAPE	MSE	MAD
1	112.15
2	112.26
3	113.22
4	113.29
5	113.9
6	114.11

Question 2: (Part A & B- 7.5 Marks each) (15 Marks)

1. An electronic instrument dealer is seeking a fourth warehouse location to complement three existing warehouses. There are three potential locations: Cairo, Amman; and Paris.

Cairo would involve a fixed cost of $2000 per month and a variable cost of $2per unit;

Amman would involve a fixed cost of $2500 per month and a variable cost of $3 per unit.

Paris would involve a fixed cost of $2,500 per month and a variable cost of $3 per unit

Use of the Cairo location would increase system transportation costs by $6,000 per month. Amman by $11,000 per month and Paris by $9,000 per month.

Which location would result in the lowest total cost to handle 1600 units per month? (7.5 Marks)

Given volume = 800 unit per month

Monthly total cost =FC + FV + transportation cost

2. Potential locations in Bahrain, Beirut, and Dubai have the cost structures shows in Table below for a product expected to sell for $260

(B-1) Find the most economical location for an expected volume of 3,000 units per year.

(4 Marks)

(B-2) What is the expected profit if the site selected in (B-1) is used? (3.5 Marks)

Potential Location	Fixed Cost / year	Variable Cost / years
Bahrain (A)	$75000	$35.00
Beirut (B)	100,000	25.00
Dubai (C)	200,000	12.50