Assignment Task
Question 1
i. In this exercise you should calculate three types of averages, the absolute forecast error and the mean absolute deviation (MAD) and explain the accuracy.
Calculate the straight average for 6 months
Calculate the moving average for 3 months
Calculate the weighted moving average (WMA) for 3month
Calculate the absolute forecast error
Calculate the MAD
ii. Which of the forecasts is the most accurate and why?
Question 2
Inventory management
The ABC Stationary Company purchases paper from the Seaboard Paper Company. Wallace produces stationary that require 1,415,000 square metres of stationary per year. The cost per order for the company is $2,200; the cost of holding 1 square metre of paper in inventory is $0.08 per year.
Determine the following:
Economic order quantity
Minimum total annual cost
Optimal number of orders per year
Optimal time between orders
Question 3
Please complete the production planning exercise
Forecast = 2000, 2500, 2000, 3000
Beginning inventory = 200
Ending inventory = 700
Required
Plan for level production and production rate
Calculate inventory for each period
Please write the formulas for
Question 4
1. Please create a product hierarchy for the Stationary bike trainer
2. Please calculate the retail cost for the S1 Sport Stationary Bike Trainer
Part number
Part name
Quantity
Cost per item
Total cost
JBT – 35
JB Frame bushing (S1 Sport)
$83.55
JBT – 15
JB Axle support cup (drive and non-drive side)
$16.35
JBT – 32
JB Axle bolt with axle support cup (drive and non-drive side)
$7.35
JBT – 37
JB Foot for trainer base
$32.65
JBT – 22
JB Skewer for trainer (not pictured)
$16.30
JBT – 30
JB Resistance unit assemble (S1 Sport)
$8.95
JBT – 36
JTB Resistance Unit adjustment bolt
$15.50
JBT – 36
JTB Resistance Unit adjustment bolt (nob)
$ 7.30
Mark up 5%
Retail cost
Question 5
Please provide a visualization of the gallery procedures choosing an appropriate charting method. (Please use Lucidchart or some other visualization software to ensure you have a good quality ‘business ready’ artifact).