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2-1 Sales of Cool-Man air conditioners have grown steadily during the past 5 years: DEMAND ADV SEPENT 2017 2018 450 1200 495 1650 1710 2019 2020 518 563 1860 2021 584 1960 Predict the demand of Year 2021 by: a. Using 3 moving average b. Using exponential smoothing with alpha = 0.30. The sales manager had predicted, before the business started, that year l's sales would be 410 air conditioners. c. Using the relationship between the sales and advertainment spent Which of the above value is the best predicated demand for Year 2021? 2-2 Three trials for the company stock control system were calculated as shown in the table below. The holding cost, shortage cost and ordering costs have been estimated to be $220, $8Q and $170. The company has a high competition therefore they need to keep their customer and attract more new customers. Strategy 1 strategy 2 Strategy 3 Reorder Quantity 200 600 400 Reorder Level 300 400 200 Lead Time 1 Number of days when stock out is occurred 20 12 Number of days when holding is occurred 10 18 25 Number of holding units Mean of closing cost Number of orders placed Number of Back ord ers 900 1450 2500 305 754 1500 20 10 1000 700 300 Based on the given information, answer the following questions: a. Which model has been used? b. Calculate the total cost under each trial c. Which of the following inventory strategy is the best? Explain your answer d. If the company has 600 units in the stock, production is 500 units and demand estimated to be 800 units, what will be the profit of the company in this day following strategy 1? (Price is $200 and production cost is $90). e. Based on D, if the demand is estimated to be 400, Reordered quantity is 200 units and the manager wants to reach profit of $33000, what should be the Reorder Level?|

2-1 Sales of Cool-Man air conditioners have grown steadily during the past 5 years: DEMAND ADV SEPENT 2017 2018 450 1200 495 1650 1710 2019 2020 518 563 1860 2021 584 1960 Predict the demand of Year 2021 by: a. Using 3 moving average b. Using exponential smoothing with alpha = 0.30. The sales manager had predicted, before the business started, that year l's sales would be 410 air conditioners. c. Using the relationship between the sales and advertainment spent Which of the above value is the best predicated demand for Year 2021? 2-2 Three trials for the company stock control system were calculated as shown in the table below. The holding cost, shortage cost and ordering costs have been estimated to be $220, $8Q and $170. The company has a high competition therefore they need to keep their customer and attract more new customers. Strategy 1 strategy 2 Strategy 3 Reorder Quantity 200 600 400 Reorder Level 300 400 200 Lead Time 1 Number of days when stock out is occurred 20 12 Number of days when holding is occurred 10 18 25 Number of holding units Mean of closing cost Number of orders placed Number of Back ord ers 900 1450 2500 305 754 1500 20 10 1000 700 300 Based on the given information, answer the following questions: a. Which model has been used? b. Calculate the total cost under each trial c. Which of the following inventory strategy is the best? Explain your answer d. If the company has 600 units in the stock, production is 500 units and demand estimated to be 800 units, what will be the profit of the company in this day following strategy 1? (Price is $200 and production cost is $90). e. Based on D, if the demand is estimated to be 400, Reordered quantity is 200 units and the manager wants to reach profit of $33000, what should be the Reorder Level?|

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section: Chapter Questions
Problem 42P: The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars)...
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2-1 Sales of Cool-Man air conditioners have grown steadily during the past 5 years: DEMAND ADV SEPENT 2017 450 1200 2018 495 1650 2019 518 1710 2020 563 1860 2021 584 1960 Predict the demand of Year 2021 by: a. Using 3 moving average b. Using exponential smoothing with alpha = 0.30. The sales manager had predicted, before the business started, that year 1l's sales would be 410 air conditioners. c. Using the relationship between the sales and advertainment spent Which of the above value is the best predicated demand for Year 2021? 2-2 Three trials for the company stock control system were calculated as shown in the table below. The holding cost, shortage cost and ordering costs have been estimated to be $220, $80 and $170. The company has a high competition therefore they need to keep their customer and attract more new customers. Strategy 1 Strategy 2 Strategy 3 Reorder Quantity 200 600 400 Reorder Level 300 400 200 Lead Time 1 Number of days when stock out is occurred 20 12 Number of days when holding is occurred 10 18 25 Number of holding units 900 1450 2500 Mean of closing cost Number of orders placed Num ber of Back orders 305 754 1500 20 10 5 1000 700 300 Based on the given information, answer the following questions: a. Which model has been used? b. Calculate the total cost under each trial c. Which of the following inventory strategy is the best? Explain your answer d. If the company has 600 units in the stock, production is 500 units and demand estimated to be 800 units, what will be the profit of the company in this day following strategy 1? (Price is $200 and production cost is $90). e. Based on D, if the demand is estimated to be 400, Reordered quantity is 200 units and the manager wants to reach profit of $33000, what should be the Reorder Level?|
Transcribed Image Text:2-1 Sales of Cool-Man air conditioners have grown steadily during the past 5 years: DEMAND ADV SEPENT 2017 450 1200 2018 495 1650 2019 518 1710 2020 563 1860 2021 584 1960 Predict the demand of Year 2021 by: a. Using 3 moving average b. Using exponential smoothing with alpha = 0.30. The sales manager had predicted, before the business started, that year 1l's sales would be 410 air conditioners. c. Using the relationship between the sales and advertainment spent Which of the above value is the best predicated demand for Year 2021? 2-2 Three trials for the company stock control system were calculated as shown in the table below. The holding cost, shortage cost and ordering costs have been estimated to be $220, $80 and $170. The company has a high competition therefore they need to keep their customer and attract more new customers. Strategy 1 Strategy 2 Strategy 3 Reorder Quantity 200 600 400 Reorder Level 300 400 200 Lead Time 1 Number of days when stock out is occurred 20 12 Number of days when holding is occurred 10 18 25 Number of holding units 900 1450 2500 Mean of closing cost Number of orders placed Num ber of Back orders 305 754 1500 20 10 5 1000 700 300 Based on the given information, answer the following questions: a. Which model has been used? b. Calculate the total cost under each trial c. Which of the following inventory strategy is the best? Explain your answer d. If the company has 600 units in the stock, production is 500 units and demand estimated to be 800 units, what will be the profit of the company in this day following strategy 1? (Price is $200 and production cost is $90). e. Based on D, if the demand is estimated to be 400, Reordered quantity is 200 units and the manager wants to reach profit of $33000, what should be the Reorder Level?|
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