Forecasting
1. With the data given, compute the following
Month Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct
Orders 120
90
100
75 110
50
75
130 110 . 9
 Compute the monthly demand forecast for February through November0 using
the naive method.
 Compute the monthly demand forecast for April through November using a 3-month
moving average.
 Compute the monthly demand forecast for June through November using a 5-month
moving average.
 Compute the monthly demand forecast for April through November using a 3-month
weighted moving average. Use weights of 0.5, 0.33, and 0.17, with the heavier
weights on the more recent months.
2. With the data given, compute the following
Month
Demand
Jan
37
Feb
40
Mar
41
Apr
37
May
45
Jun
50
July
45
Aug
47
Sep
56
Oct
52
Nov
55
Dec
54
a. Use exponential smoothing with smoothing parameter α = 0.3 to compute the demand
forecast for January.
b. Use exponential smoothing with smoothing parameter α = 0.5 to compute the demand
fo re cast for January.
Linear Regression Problems
1. Using linear regression, forecast the demand for the year 2015, 2016 and 2017.
YEAR
2010
2011
2012
2013
2014
SALES
1000
1100
1050
1200
1150
2. Using linear regression, forecast the demand for the year 2010.
YEAR
1991
1992
1993
1994
1995
1996
1997
1998
1999
DEMAND
139
149
157
175
216
303
390
449
462
2000
487
Material Requirement Planning
1. The Master Production Schedule as shown below
Week
Demand
Master Production Schedule
1
2
3
4
5
6
200
100 175 300 200
7
-
8
250

The bill of materials states that one unit of A (Finished Good) is made by using 1 unit of B
and 1 unit of C.

To make 1 unit of C we need, 1 unit of D and 1 unit of E.
Bill of Materials
PARTS
ORDER
QUANTITY
LEAD TIME IN
WEEKS
STOCK IN HAND
A
350
2
200
B
450
1
400
C
400
1
375
D
375
1
250
E
400
2
425
2. The Master Production Schedule as shown below for a hand trolley.
Week
Demand
Master Production Schedule
1
2
3
4
5
6
200
240
240
7
-
8
220

Each hand trolley has a bin, 2 wheels assemble, 2 handle bars and a mountain bas.

Each Wheel assemble has a wheel and 2 bearings.
Bill of Materials
PARTS
ORDER
QUANTITY
LEAD TIME IN
WEEKS
STOCK IN HAND
Hand Trolley
350
1
220
Bin
400
2
250
Wheels Assembly
800
2
120
Handle Bars
850
2
105
Mountain Bas
250
1
250
Wheel
600
2
300
Bearings
1500
2
200

A shipment of 800 wheels assembly is scheduled to be received in the beginning of week 2

Another shipment of 250 mountain bas is scheduled to be received in the beginning of
week 3
Complete the MRP.