Please answer the three (3) questions on demand forecasting and customer relationship management.

Please submit your answers in an Excel file. Please use multiple worksheets (tabs), with an answer to each question on a separate worksheet.

Principles of Supply Chain Management LGMT 444 Problem Set 1 1. Based on the information shown below, develop forecasts for April to October using: (a) A 3-period weighted moving average model (w1 = 0.5, w2 = 0.3, and W3 = 0.2). (b) An exponential smoothing model with a = 0.35. Assume the forecast for March was 950. Month Actual Demand Jan 1050 Feb Mar 1000 Apr 870 May 970 Jun 1220 Jul 1170 Aug 1 150 Sep 1235 Oct 1275 2. Based on the information shown below, calculate MAD, MSE and tracking signal. Week Actual Demand Forecast 750 170 690 730 AWN 820 10 850 790 870 840 6 780 350 7 915 890 8 950 920 3. For the information given, rank the customers in terms of customer lifetime value. Avg. Annual Sales Avg. Profit Margin Expected Lifetime Customer 1: $3,450 17% 8 years Customer 2: $2,000 13 % 6 years Customer 3: $1,400 32 % 10 years Use a discount rate of 6 percent and treat the average sales figures as annuities. Should any of these customers be fired