BIM302 Assignment Answer Sheet

Posted on March 24, 2022 by Cheapest Assignment

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ECON60125 - Business of War and Terrorism

Question 1: Multiple Choice Questions (3 Marks, 0.5 mark each)

1 2 3 4 5 6
a b d C d a

Question 2: True –False Questions (3 Marks, 0.5 mark each)

1 2 3 4 5 6
T T F T T F

Question 3: Problem-solving (14 Marks)

  1. Compute the Demand forecast for the month of July using the moving average of order 3. Compute the whole MA series (show computation for July). (2 Marks)
Period Month Demand Dt (units) Three-Month Moving Average
1 Jan. 45
2 Feb. 65
3 Mar. 52
4 Apr. 81                   54
5 May 68                   66
6 Jun. 88                   67
7 Jul.                     79
  1. Compute the Demand forecast for the month of July using the weighted moving average of order 3, the weights from the most recent month are 60%, 30%, and 10%. Compute the whole WMA series (show computation for July). (2 Marks)
Period Month Demand Dt (units) Three-Month Weighted Moving Average
1 Jan. 45
2 Feb. 65
3 Mar. 52
4 Apr. 81 18.4
5 May 68 38.3
6 Jun. 88 23.4
7 Jul. 27.1
  1. Compute the Demand forecast for the month of July using the exponential smoothing with α = 0.3, assuming that F1 = 50 units (show computation for July). (4 Marks)
Period Month Demand Dt (units) exponential smoothing Demand forecast Ft (α= 0.3)
1 Jan. 45 50.00
2 Feb. 65 48.5
3 Mar. 52 53.45
4 Apr. 81 53.015
5 May 68 61.4
6 Jun. 88 63.38
7 Jul. 70.77
  1. Calculate the tracking signal TS for exponential smoothing and plot it (show computation for March). Based on the plot, is the ES forecast in control? Explain why. (6 Marks)
Period t Month Demand Dt ES forecast Ft (α= 0.3) Error 

Dt — Ft

Σ(Dt—Ft) Abs. Error

|Dt—Ft|

Σ|Dt—Ft| MAD TS
1 Jan. 45 50.00
2 Feb. 65 48.5 16.5 16.5 16.5 16.5 48.5 2.9
3 Mar. 52 53.45 -1.45 15.05 1.45 17.95   50.55 3.36
4 Apr. 81 53.015 27.985 43.03 27.985 45.985   53.01 1.23
5 May 68 61.4 6.6 49.63 6.6 52.535 54.8 1.1
6 Jun. 88 63.38 24.62 74.25 24.62 77.155 63.38 0.85
7 Jul. 70.77

 

3
2
1
-1
-2
-3

The exponential smoothening forecast is not in control because it has exceeded the upper control limit. The tracking signal has exceeded the control limits and the forecasting process should be reviewed.

Question 4: Problem-solving (10 Marks)

  1. Compute the optimal order quantity Qopt. (3 Marks)

EOQ=2×Demand×Ordering CostCost of holding

2×14,400×1000.5=

=2400

  1. Compute the minimal annual total cost TCmin. (3 Marks)

Holding cost =Demand/2 =14400/2=7200

Ordering cost=demand/optimal order quantity *ordering cost=

14,400/2400*100=600

TC=holding cost +ordering cost

7200+600=8000

  1. Compute the Number of Orders per Year. (2 Marks)

Demandoptimal order quantity×ordering cost

14,4002400×100

=600 orders

  1. Compute the Order Cycle Time in a number of days, assuming there are 300 workdays per year. (2 Marks)

14,4002400×300

=1800 days

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