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From 7.1 (5 points total): a.  In the forecasting problem from 7.1, why did you start the regression analysis in period 7? b.  What were the dependent and independent variables in the regression from 7.1? From 8.1 (5 points total): Decision Variables: Ht = # of workers hired in month t (t = 1,..,12) Lt = # of workers laid-off in month t (t = 1,..,12) Wt = # of workers employed in month t (t = 1,..,12) Ot = # of hours of overtime in month t (t = 1,..,12) It = # of units (000s) held in inventory at the end of month t (t = 1,..,12) Ct = # of units (000s) subcontracted in month t (t = 1,..,12) Pt = # of units (000s) produced in month t (t = 1,..,12) Parameters: Dt = # of units (000s) demanded in time period t (t = 1,…12) Original Objective function from 8.1: Minimize 3200∑Wt+ 30∑Ot + 3000∑It + 20000∑Pt  from t = 1 to 12 c.  Rewrite the objective function to include the $28 subcontracting decision variable.

What is the Inventory turn per year for Target? Round to 2 decimal places. [BLANK-1]

What is the Flowtime in days for Target? Round to 2 decimal places. [BLANK-1]

What is the Inventory Turn per year for Walgreens? Round to 2 decimal places. [BLANK-1]

Referring to exercise 8.2 and the spreadsheet you have developed, what is the total cost using $25/unit for subcontract cost? [BLANK-1]

What does it mean to maximize supply chain surplus?

Referring to exercise 8.2 and the spreadsheet you have developed, what is the per unit cost when using the $25/unit subcontract cost? Round to 2 decimal places. [BLANK-1]

Which company, Wal-Mart, Target, or Walgreens, is the most successful at inventory management and why?

Continuing on, what is the Inventory Turn per year for Wal-Mart? Round to 2 decimal places. [BLANK-1]

In the spreadsheet exercise 7.1, we forecasted demand using the static forecasting method. Please explain why we used a linear regression to determine level and trend. What does level and trend mean in terms of the linear regression?