Discuss the below:
Q1: Explain how to use seasonal index values to create a forecast.
Q2: In the solution of the assignment problem, the opportunity lost is the difference between the
a. smallest value in the column and the value in the cell.
b. largest value in the row and the value in the cell.
c. smallest value in the row and the value in the cell.
d. largest value in the column and the value in the cell.
Explain how to alter the transportation and assignment solution procedures for maximization problems.
Inventory
e. is held against uncertain usage so that a supply of items is available if needed.
f. constitutes a small part of the cost of doing business.
g. is not something that can be managed effectively.
h. each of the above is true.
Safety stock
i. can be determined by the EOQ formula.
j. depends on the inventory position.
k. depends on the variability of demand during lead time.
l. is not needed if Q* is the actual order quantity.
Q3: List four improvements that the implementation of an MRP system might provide.
Q4: When is qualitative forecasting used? Give examples of four types of qualitative forecasting.
Q5: TRUE or FALSE: The order-quantity reorder-point model with probabilistic demand sets the reorder point by using the probability distribution of demand during lead time.
Q6: What compromise must be made in the how-much-to-order decision?