Toro Cutlery company wants to forecast the demand for bicycles in June 2020 to have a plan to prepare the source of goods to suit the consumption demand of the market. Given that the demand for Bicycles in the previous 5 months is as follows:

months	demands (unit)
1	21600
2	22900
3	25500
4	21900
5	23700

a. Using the 3-year moving average method (Moving average) to forecast the demand for Bicycles in 2021. Determine the error value according to this method.

b. (1.5đ) Using the Linear Trend method to forecast the demand for bicycles in the future

year 2021. Determine the error value according to this method.

c. (1.0đ) Rate the above two forecasting methods and indicate the company should apply the price

What is the forecast value for 2021?

2) In 2021, in order to have the forecasted number of Bicycles (using the results obtained from Question 1c), the Company is considering manufacturing or importing from suppliers to achieve optimal costs, knowing that the cost to manufacture the Bicycle and purchase the Bicycle from the supplier is as follows:

cost	make option	buy option
fixed cost	125000	5000
variable cost	11	17

a)Determine the amount of Bicycle consumption at the break-even point and the total cost that the Company needs to pay corresponding to this amount

b) 1.0đ) Please help the Company make the decision to manufacture or import vehicles from suppliers in the following 02 cases:

1. The number of Bikes needed is 80% of the forecast value of 2021

1. The number of Bicycles required is equal to the forecast value of 2021

c. (1.0đ) From the results of Question 2a & Question 2b, please give advice to the Company on the issue that the Company is considering.

Answer rating: 100% (QA)

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