Question 3) Consider a transportation problem There are a set of suppliers and a set of customers in a region. The customers have their known demand of a specific product. Suppliers have supply capacities for the product. An operations manager wants to make shipment decisions, i.e., how many items to ship from each supplier to each customer, subject to the demand requirements and supply capacities. The shipment costs and supply information are presented below. Table 1 We want to determine a shipment plan to satisfy customes demand in the month of April. But, we do not have demand information for April. But we have historical demand data for the previous 11 months for each of the customers. 11 March 75 33 103 a) Apply the following three forecasting models to predict April's demand for each customer. i) 4-month moving average ii) Exponential Smoothing with Lt = 0.4- iii) Trend Line (regression) Answer: TabFe 3 Aw" Demand Forecast 4 Month Moving _- Exponential _- Trend Line (Regression) - b) Use Mean Squared Error (MSE) evaluation method to select the best forecasting model for each customer. Report MSE of each forecasting model for each customer. Answer: WOW? 4 Mean Squared Error (MSE) 4 Month Moving _- - Exponential _- - Trend Line (Regression) - - c) For each customer, put April's prediction of the best model in the table below: Table 5