lgmt 444 wk2 Business & Finance homework help
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Principles of Supply Chain Management LGMT 444
Problem Set 1
1. Based on the information shown below, develop forecasts for April to October using:
(a) A 3-period weighted moving average model (w1 = 0.5, w2 = 0.3, and w3 = 0.2).
(b) An exponential smoothing model with α = 0.35. Assume the forecast for March was 950.
|
Month |
Actual Demand |
|
Jan |
1050 |
|
Feb |
975 |
|
Mar |
1000 |
|
Apr |
870 |
|
May |
970 |
|
Jun |
1220 |
|
Jul |
1170 |
|
Aug |
1150 |
|
Sep |
1235 |
|
Oct |
1275 |
2. Based on the information shown below, calculate MAD, MSE and tracking signal.
|
Week |
Actual Demand |
Forecast |
|
1 |
750 |
770 |
|
2 |
690 |
730 |
|
3 |
820 |
710 |
|
4 |
850 |
790 |
|
5 |
870 |
840 |
|
6 |
780 |
850 |
|
7 |
915 |
890 |
|
8 |
950 |
920 |
3. For the information given, rank the customers in terms of customer lifetime value.
Avg. Annual Sales Avg. Profit Margin Expected Lifetime
Customer 1: $3,450 17 % 8 years
Customer 2: $2,000 13 % 6 years
Customer 3: $1,400 32 % 10 years
Use a discount rate of 6 percent and treat the average sales figures as annuities. Should any of these customers be fired?
1
