Question: Question 1: Forecasting and Inventory management (40%) Electroducks is a major manufacturer of home appliances. At the beginning of 2021, they wanted to use the

Question 1: Forecasting and Inventory management (40%) Electroducks is a major manufacturer of home appliances. At the beginning of 2021, they wanted to use the sales data of 2020 from their Scandinavian market to forecast future demand of their air- conditioners. The sales data is given in the table below. This table is also given in worksheet "Assignment 1" of the attached Excel file. Period Sales January 2020 73 February 2020 150 March 2020 765 April 2020 1820 May 2020 2970 June 2020 3704 July 2020 4130 August 2020 3903 September 2020 3001 October 2020 1931 November 2020 964 December 2020 163 a] Make a 3 month moving average forecasting model. Use this model to make a forecast for January 2021. b) The analysts of Electroducks, have compared sales data of air conditioners with the average temperature at the same periods in their Scandinavian market region. They believe there is a relationship between sales and temperature. Use the following average temperature data and make a causal model to forecast demand. This table is also given in worksheet "Assignment 1" of the attached Excel file. What is your forecast for January 2021, if the forecasted temperature for January 2021 is -2.5 *c? Period Average temperature ("C January 2020 2.8 February 2020 .2.4 March 2020 1 April 2020 5.9 May 2020 11.6 June 2020 15.3 July 2020 17.6 August 2020 16.5 September 2020 11.8 October 2020 6.6 November 2020 1.6 December 2020 -2.4 c) Compare the models in (a] and (b]. Which one is more accurate? Why? NAverage temperature |3-month moving Causal Period Air-conditioners sales | ( average forecast forecast Electromotors January 2020 73 2,8 Average monthly requirements February 2020 150 -2,4 1500 March 2020 765 Standard deviation of monthly requirements April 2020 1820 5,9 200 May 2020 2970 11,6 Delivery time from supplier June 2020 3704 15,3 1 month July 2020 130 17,6 Purchasing price per electromotor August 2020 3903 16,5 80 Euros September 2020 3001 11,8 Transportation cost for each order October 2020 1931 6,6 200 Euros November 2020 964 1,6 Order processing cost for each order December 2020 163 -2,4 16 Euros Interest rate 15% per year ) Make a 3-month moving average forecasting model. Use this model to make a forecast for January 2021. 3-month moving Period Air-conditioners sales | average forecast January 2020 73 February 2020 150 March 2020 765 April 2020 1820 May 2020 2970 June 2020 3704 July 2020 4130 August 2020 3903 September 2020 3001 October 2020 1931 November 2020 964 December 2020 163

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