Operating Management

OPMA 3306- 001

Home Work -2

Instructions- Please show your calculations for Q4 and Q5 to get full credit.

Q.1 What are the different components of Demand as discussed in the class? Point -2

Q.2 What is the main difference between Seasonality and Cyclical pattern as discussed in the

class? Point-2

Q.3 In Simple Moving Average , discuss what will be the difference in forecast when we use

small n and the large n in simple moving average .( For example small n means 3month moving

average and large n means 9month moving average). Point 3

Q4. The following table contains the number of complaints received in the department store for

first 6 months of operation:

Month

Complaints

Jan

36

Feb

45

Mar

81

April

90

May

108

June

144

a. Calculate the forecast for the month from April through June using 3month moving

average? Point -3

b. What will be the forecast for the month of July using 3month moving average? Points- 2

c. If actual sales for the month of July turned out to be 145, what will be the forecast for

August month using 3 month moving Average. Points -2

Q5 Consider the monthly sales data of a company for last year as well as first six month

data for current year. Use a three- quarter weighted moving average, Forecast the sales of

company for 3rd Quarter of current year. Use Weights of 4/7, 2/7 and 1/7, giving more

weight to more recent data. Note, the 1ist quarter is Jan, Feb and March , 2nd quarter is Apr,

May, June, 3rd quarter is July, Aug and Sept, and 4th quarter is Oct, Nov and Dec. Points -6

Month

Last Year

Current Year

Jan

100

125

Feb

125

135

Mar

135

135

April

175

190

May

185

200

June

200

190

July

150

Aug

140

Sept

130

Oct

200

Nov

225

Dec

250