| Category | Assignment | Subject | Management |
|---|---|---|---|
| University | ____ | Module Title | DDPLMY3 Demand Planning |
A company wants to establish the feasibility of introducing a new product into the market. To this end they have obtained the sales of two analogue products over the past ten months as follows:
The plots associated with each of the data sets are as follows:
However, the corresponding correlation coefficients are the same i.e. 0.97. Considering this information (correlation coefficients and data plots) which data set would you recommend that the company use for forecasting purposes? Confirm your recommendation by calculating a measure of forecast accuracy for each data set.
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A company produces three different types of widget i.e. W1, W2 and W3. In order to develop an aggregate production plan the following aggregate demand forecasts for the next five months were obtained through a collaborative forecasting process:
The following aggregate production cost and inventory information is available:
34.1 Assist the planners to develop an aggregate production plan that will result in stable regular production output.
34.2 What will be the impact on regular time production, overtime production, subcontracting and inventory (units only) if regular time production is restricted to 5000 units/month, overtime production is restricted to 500 units/month and the starting inventory = 100 units for the aggregate production plan in 34.1?
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