Application Activity 2: Demand and Resource Planning
Based on the numbers in the table above, forecast the sales (by month) from March through
December using a 2-month weighted moving average. Use the weights of (3/4) and (1/4), giving
more weight to more recent data.
Forecast the sales for the months of March through December using exponential smoothing with
α = 0.7 beginning with an initial forecast in January of $3,000 and starting error measurement in
March.
Using the mean absolute deviation as your performance criterion (with error measurement
beginning in March), compare the two forecasting methods you used in A and B. Which method
would you recommend as a more reliable predictor? Why?
Using the mean percent error as your performance criterion (with error measurement beginning
in March), compare the two forecasting methods you used in A and B. Which method would you
recommend as a more reliable predictor? Why?
Use a level strategy to create a staffing plan for this department that results in no service delays.
Your plan can use only overtime to meet the goals and must minimize the inactive undertime.
What is the total cost of your plan based on these parameters?
Create a plan that uses a chase strategy to vary the workforce level, but that does not result in
any overtime while minimizing undertime. What is the total cost of your plan based on these
parameters?
Propose a staffing plan that would be superior to both a level strategy and a chase strategy. What
benefits would the plan provide for Olde World? Consider the total cost of the plan as well as
non-financial factors that make the plan a better choice to optimize performance
What specific managerial actions are required by Olde World Windows and Doors in Week 1?
Make sure you address any specific difficulties you encounter in the inventory records
