$Q2$: Demand Forecasting

A company $is$ forecasting demand for its product using $a3-$month moving average. The

histor$3$ical monthly demand $(in$ units$)$ for the last $5$ months $is$:

Formula for $3-$Month Moving Average Forecast

Forecast for month $t=\frac{D_{t-1}+D_{t-2}+D_{t-3}}{3}$

where $D_{t-1},D_{t-2},D_{t-3}$ are the demands for the three months prior $to$ month $t.$

Tasks

$a=1,000$ units $\frac{?}{?}$ month

Regular production cost $=$$$50$ per unit

Beginning inventory $=150$ units

Inventory holding cost $=$$$3$ per unit per month $(appliedto$ ending inventory$)$

Tasks

$a=480$ minutes$(CT)=$ Total available time per shift $$ Units required per shift

Minimum number $of$ workstations $=$ Total task time $$ Cycle time $(rounded$

$up)$

Tasks

$a=$ Annual demand $$ Operating days per year

Safety Stock $=z{}_d\sqrt[\phantom{2}]{L}$ead time $,$ where $z=1\mathrm{.}65$ for $a95\%$ service level

Tasks

$ab95\%$ service level. Round $to$ the nearest

whole number.

Note: Show all calculations clearly.

$Q6$: Capacity Planning

A factory produces a product with the following monthly demand and production capac$-$

ity:

Additional Information

Regular production capacity $=1,300$ unit$\frac{s}{m}$onth

Overtime production cost $=$$$60$ per unit

Subcontracting cost $=$$$70$ per unit $(usedif$ demand exceeds regular and overtime

capacity$)$

Tasks

$a5=100$ units

Current inventory: $x=50$ units, $Y=100$ units

$Ta3sks$