Question 1.
The owner of a Chocolate Outlet Store wants to forecast chocolate demandDemand for the preceding 4 years is shown in the following table:
|
Year
|
1
|
2
|
3
|
4
|
|
Demand (Kilograms)
|
69,000
|
71,500
|
74,900
|
70,800
|
Forecast demand for Year 5 using the following approaches:
(1) A three-year simple moving average
(2) A three-year weighted moving average using 0.35 for Year 4, 0.30 for Year 3, and 0.35 for Year 2.
(3) Simple exponential smoothing with α = 0.35 and assuming the forecast for Period 1 = 69,000
Question 2. What key factors need to be considered in supply chain integration and how can risk mitigation help increase security?
Question 3. In two consecutive years a warehouse had the following characteristics.
|
|
Year 2014
|
Year 2015
|
|
Weight of materials moved
|
6000 tonnes
|
7000 tonnes
|
|
Number of orders satisfied
|
1750
|
1930
|
|
Number of stockouts
|
91
|
60
|
|
Average inventory value stocked
|
$256,500
|
$293,000
|
|
Cost of administration
|
$65,000
|
$77,000
|
|
Hours worked
|
13,000
|
16,000
|
|
Direct costs
|
$120,000
|
$180,000
|
|
Energy used
|
22,000kWh
|
25,000kWh
|
|
Energy cost
|
$3,000
|
$4,000
|
Based on the information above - what can you say about its performance?