MGT613-Production & Operations Management
Subject: Business / Management
Question
Production & Operations Management – MGT613
Table below shows its annual sales, demand and production demand over the period 1998 to 2005 (For both canvas and parachute material tents).
TABLE , ANNUAL VALUES OF SALES, DEMAND AND PRODUCTION FOR PAKORG
YEAR
1998
1999
2000
2001
2002
2003
2004
2005
SALES
214,200
202,100
192,500
189,000
198,300
213,400
241,400
231,100
DEMAND
150,000
155,000
125,000
200,000
225,000
245,000
175,000
185,000
PRODUCTION
155,000
155,000
185,000
185,000
185,000
185,000
185,000
185,000
Identify the sales trend over the period shown
Do the demand figures show cyclical fluctuations?
What happens on the sales trend if there is a prolong summer or a tragic incident like an earthquake or a flood.
Compute a three year and five year moving average demand forecast for both types of tents for the last five years (2001 to 2005).
The management provides a smoothing constant value of 0.1 and 0.6 and asks to record the differences between actual and forecaster demand values. The spread is narrow and wider for which smoothing constant?
