Case Study 1: The AusCandy Demand

The following table shows the historical demand data for products A and B in AusCandy Co. Answer the following questions.

Period	Actual demand product A	Actual demand product B
1	943	55
2	627	72
3	657	63
4	744	71
5	904	43
6	613	69
7	955	46
8	642	43
9	598	79
10	911	59
11	711	64
12	645	75
13	747	57
14	722	49
15	721	62
16	620	75
17	910	57
18		66
19		75
20		47
21		47
22		49
23		58
24		58
25		39
26		73
27		78
28		63
29		37
30		38
31		86

Using the exponential smoothing method to forecast the demand for product A determine the best value for alpha? (2.5 marks)
Show the actual and forecast demand for product A for all possible periods based on the answer in part 1. What is the best forecast for period 18? (2.5 marks)
Using the moving average method to forecast the demand for product B determine the best value for n? (2.5 marks)
Show the actual and forecast demand for product B for all possible periods based the answer in part 3. What is the best forecast for period 32? (2.5 marks)

Hint: Use MAD and MSE for error calculations

Important note:

Use MAD and MSE for error calculations
A brief explanation is required for each question.

Case Study 2: UFE Clubs Case Study

UFE Clubs produces ball bearings. The diameter of the ball bearings is very important for quality purposes. The following tables show the diameters of 4 randomly selected samples. Each sample contains five observations.

	Observations
Sample		1	2	3	4	5
1		0.456	0.97	0.353	0.065	0.453

2		0.319	0.008	0.705	0.538	0.544

3		0.607	0.049	0.652	0.962	0.766
4		0.244	0.023	0.068	0.476	0.454

1. Is the production process of the ball bearings are under control both in terms of central tendency and dispersion. Show all calculations and control charts.

2. A customer for ball bearings places an order with a diameter of 0.450 +/- 0.1. What is the Process Capability Index? The Process Capability Ratio? Is the process capable?

3. If the firm is seeking two-sigma performance, is the process capable of producing the ball bearings?

University	Singapore University of Social Science (SUSS)
Subject	BUS351: Operations Management

BUS351: The Aus Candy Demand The Following Table shows the Historical Demand data for products A and B in AusCandy Co: Operations Management Assignment, SUSS, Singapore

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