LOG202: Based on the Information Shown Below, Apply the Single Exponential Smoothing Method: Managing Operations Assignment, SUSS, Singapore

Question 1

• Based on the information shown below, apply the single exponential smoothing method to calculate the forecast for Week-9. Assume that α = 0.20 and the forecast for Week-1 is 875 units. In addition, use the four-period moving-average method to find the forecasts from Week-5 to Week-9. Include the MSE, MAD, and MAPE for both forecasting methods in your calculations.

Which method gives the better forecast? Why do you say so?

• Select a service (i.e. non-manufacturing) organisation that any of the team members are familiar with or have worked/are working in. Demonstrate how the concepts of resource planning translate for this organisation. Provide examples for all levels of planning at this organisation.

Question 2

• Select a firm that any of the team members are familiar with. Analyse how this firm can use some of the short-term capacity management strategies to cope with fluctuations in demand. You need to elaborate on strategies related to both influencing the demand and adjusting the capacity.
• Assume your team owns a retail shop (either a physical shop or an online market) and need to plan for your inventory. Choose a product and explain the issues and trade-offs involved (for both demand and supply sides) in inventory management for that product. Examine which of the inventory control models you would select to manage the inventory.
• The manager at the Challenger store in Clementi is planning for the inventory of their printers. The average demand for the printers is 50 units per day, ordering cost is $50 per order, the unit price is $100, lead-time is 2 weeks, carrying/holding rate is 20%, and the standard deviation of demand is 20 units per day. Consider 365 days per year. Assume the manager uses a fixed order quantity system. Compute the economic order quantity and the reorder point to have a 90% service level. Explain your result.