1) Use the following data for this Forecasting Problem and use the Exponential Smoothing Forecast Technique with an alpha value of 0.75.
What is your forecast for period #5?
2) Consider the following inventory problem:
The Average Monthly Demand is 400.
The Standard Deviation of Monthly Demand is 45.
The Lead Time from order placement to order receipt is 0.75 months.
The desired service level is 95%.
The Set Up Cost (or Cost per Order) is $150 per order.
The Holding Cost is $4 per item per year.
What is the Reorder Point with Safety Stock?
3) Consider the following Bill-of-Materials (BOM).
How many Part B's will be required to make one Part A?