# Practice Question

She has to spend \$40 in the necessary supplies (expendables) per day; energy costs are assumed to be only \$4. Per day; and she makes \$10 per hour for her time. A) Viewing this from a total (multiracial) productivity perspective, what is her productivity at present and what is her productivity with the new paint in terms of dolls per dollar? (1 5 points) b) If she uses the new paint, by what amount could Jacana’s material costs per doll increase without reducing total (multiracial) productivity? (10 points) SQ. (Total 50 points) Suppose you (or your group) are the manager of a company trying to determine what forecasting method to use.

Based upon the following historical data, calculate the following forecasts for each given forecasting method and then choose the best one to do the forecasts for the future. Calculate the simple 3-month moving average forecast for periods 4-6. (5 points) b. Calculate the weighted 3-month moving average using weights of 0. 50, 0. 30, and 0. 20 for periods 4-6. (5 points) c. Calculate the exponential smoothing forecast for periods 2-6 using an initial forecast (Fl) 62, and an 0 of 0. 30. (10 points).

Calculate the double exponential smoothing forecast for periods 2-6 using an initial trend forecast (T 1) of 2. 0, and initial exponential smoothing forecast (SSL)of an of 0. 30 and a 0 of 0. 30. (1 5 points) e. Calculate the Mean Absolute Deviation (MAD) for the forecasts made by each technique in periods 4-6. Which forecasting method do you prefer? Using your preferred technique forecast the demands for the following 2 months (months 7-8). (1 5 points) SQ (Total 25 plants) Goodyear Tire and Rubber Company is the ninth largest tire manufacturer in the world.

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