Question 6 Forecasting 10 marks – 2 for (a), 2 for (b), 2 for (c) and 4 for (d). Use Excel QM software to generate your answers to parts a), b) and c). Paste the results, both the answers and the formulas into your Word document. Both should show row and column numbers. The following data has been collected for the demand for 20 kg bags of potting mix for the Grow-Well Garden Supplies Company. Year Demand for potting mix (1,000 of bags) 1 4 2 6 3 4 4 5 5 10 6 8 7 7 8 9 9 12 10 14 11 15 a) Develop a 3 year moving average to forecast sales. b) Estimate demand with a weighted moving average in which sales in the most recent year are given a weight of 2 and sales in the other 3 years are each given a weight of 1. c) Develop a trend line for the demand for potting mix. d) Which of the three methods above, 3 year moving average, a weighted moving average or a trend line would you use. Explain your answer. Rationale This assessment task covers topics 3,4,5,6 and 8: Decision analysis and value of information, simulation, correlation and regression analysis and CVP analysis. Specifically, it seeks to assess your ability to complete the following subject learning outcomes: • apply decision theory to business situations • use simulation in complex decisions • demonstrate understanding of the application of statistical hypothesis testing in regression analysis • apply CVP analysis to product mix decisions involving single and multiple products
© 2015 MSA Homework Help All Rights Reserved
Disclaimer: MSA Homework Help provides reference papers to the student and we strongly recommend you not to submit the papers as it is. Please use our solutions as model answer to improve your skills.