Q$2(3$ points$).$ Develop an exponential smoothing model $(\backslash$alpha $=0\mathrm{.}5)$ for FB$378($week $2-$week $26)$ and GS$131($week $11-$week $26).$

$($Keep two decimals$)($Please fill in the blanks by highlighting them in yellow.$)$

Q$3(4$ points$).$ Calculate FE$,$ MAD, and tracking signals for the exponential smoothing model developed in question $2$ for FB$378($week $2-$week $26)$ and GS$131($week $12-$week $26).$

$($Keep two decimals$)($Please fill in the blanks by highlighting them in blue.$)$

FB$378$ GS$131$

Week Actual demand Forecast $(\backslash$alpha $=0\mathrm{.}5)$ Forecast Error $($FE$)$ AD Sum of FE MAD Tracking signal Week Actual demand Forecast $(\backslash$alpha $=0\mathrm{.}6)$ Forecast Error $($FE$)$ AD Sum of FE MAD Tracking signal

$14540\mathrm{.}001$

$2442$

$3333$

$4394$

$5455$

$6306$

$7267$

$8458$

$9339$

$103010$

$1140112015\mathrm{.}00$

$12401240$

$13451335$

$14421445$

$15321555$

$16491650$

$17501757$

$18411859$

$19341950$

$20302055$

$21452159$

$22502255$

$23502358$

$24372456$

$25352555$

$26502650$

$2727$

Q$4(3$ points$)$ Determine if there is uptrend or downtrend from the actual demand of FB$378($week $1-26)$ and the actual demand of GS$131.$

$($Show a scatter plot with a linear line for the relationship between weeks and the actual demand of FB$378$ and weeks and the acutal demand of GS$131.)$

A scatter plot $($FB$378)$ A scatter plot $($GS$131)$

$($Insert here$)($Insert here$)$

Q$5(2$ points$)$ Determine whether the two forecasting models $($for FB$378$ and GS$131)$ are performing normally or not.

Q$6(4$ points$).$ Use the information provided in the case study to develop inventory policies such as EOQ and reorder point for the FB$378$ and GS$131$ to have $95\%$ service level. Assume that the holding cost is $20\%$ of unit price.

$($Please fill in the blanks by highlighting them in yellow.$)($Assume that $52$ weeks per year$)$

FB$378$ GS$131$

Annual demand: Annual demand:

Annual holding cost, per unit: Annual holding cost, per unit:

Cost per order: Cost per order:

Cost per unit: Cost per unit:

Economic order quantity: Economic order quantity:

Average order lead time: Average order lead time:

Standard deviation of lead time: Standard deviation of lead time:

Average demand during time unit: Average demand during time unit:

Standard deviation of demand during time unit: Standard deviation of demand during time unit:

Percent desired service level: $95\%$ Percent desired service level: $95\%$

z value $($for desired service level$)$: z value $($for desired service level$)$:

Reorder point: Reorder point:

Q$7(4$ points$).$ How much money can the company save by comparing the inventory costs of your suggested order quantities $($EOQ$)$ to those of the current order quantities?

$($Please fill in the blanks by highlighting them in yellow.$)($Assume that $52$ weeks per year$)$

Current order quantity: Current order quantity:

Current annual holding cost: Current annual holding cost:

Current annual ordering cost: Current annual ordering cost:

Total holding and ordering cost: Total holding and ordering cost:

Economic order quantity: Economic order quantity:

EOQ annual holding cost: EOQ annual holding cost:

EOQ annual ordering cost: EOQ annual ordering cost:

Total holding and ordering cost with EOQ: Total holding and ordering cost with EOQ:

Total savings using EOQ: Total savings using EOQ:

Q$8(3$ points$).$ How many orders $($per year$)$ does the company make with the current order quantity to meet the customer demands for FB$378$ and GS$131?$

What is the order cycle with the current order quantity for FB$378$ and GS$131?($Assume that $365$ days per year$)?$

How many orders $($per year$)$ will the company ma