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Don’s Hardware uses a Periodic Order System to place once mo…

Don’s Hardware uses a Periodic Order System to place once monthly orders for the majority of the products he sells in his store. One product using this system is the 32 oz Roundup Concentrated Weed and Grass Killer – a product that is extremely popular in the residential areas that Don serves. Don closely tracks the demand for all products sold in his hardware store and knows that 32oz Roundup Concentrate follows a normal distribution of demand that has a mean of 375 bottles with a standard deviation of 87. This month, prior to placing the order, Don had 72 bottles in stock. Using a periodic ordering method, how many bottles of the 32 oz Concentrate should Don order? To answer this question assume that for this product Don wants to be in stock most of the time (see exam instructions).  Round up to the nearest bottle.

Consider the following actual demand and forecasted demand f…

Consider the following actual demand and forecasted demand for Ronesta All-Steel Yoyos.  Two forecasts were developed, one forecast using a 3 Month Moving Average and the other forecast using exponential smoothing. The forecast analyst used an educated guess for April as the starting point for both models. Based on the MAD for each forecast, which method appears to have resulted in the best forecast?     Month Actual Demand 3-Month Moving Average Forecast  Exponential Smoothing Forecast January 110 February 130 March 150 April 130 130 130 May 160 150 142 June 180 160 147 July 140 170 157 August 130 160 152 September 140 150 142   Check Sum: Actual Demand: 1270; 3-Month Moving Average: 920; Exponential Smoothing: 870;