Subject: Operation Management

Q.2 Question on Forecasting 10 points Assignment 1 Question 02 ABC Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year 2021. The miles driven during the past 5 years are as follows: Year 2016 2017 2018 2019 2020 Mileage 3000 4000 3400 3800 3700 a. b. How are you going to implement this issue using seven steps of forecasting? Forecast the mileage of next year using 2-years moving average. Forecast the mileage of next year using 2-years weighted moving average. Weights of most recent year 0.6 and previous year 0.4. Calculate MAD using forecasted value found through (c). C. d