Global Operations Management - GLOBAL OPERATIONS MANAGEMENT...

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Abstract The ABC Floral Shop has kept a record of the number of geraniums that were sold over a period of two weeks. This assignment will calculate a forecast of the above demand by utilizing a 3- and 5- period moving average. Once these calculations have been made, a graph will be created to further express which above forecast is most beneficial. Calculate a forecast of the above demand using a 3- and 5-period moving average. The following calculations below have been found through Microsoft Excel: Day Deman d 3-Period Moving Average 5-Period Moving Average. 1 200 2 134 3 157
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GLOBAL OPERATIONS MANAGEMENT 4 165 163.6666667 5 177 152 6 125 166.3333333 166.6 7 146 155.6666667 151.6 8 150 149.3333333 154 9 182 140.3333333 152.6 10 197 159.3333333 156 11 136 176.3333333 160 12 163 171.6666667 162.2 13 157 165.3333333 165.6 14 169 152 167 15 163 164.4 Graph these forecasts and the original data using Excel. What does the graph show?
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Unformatted text preview: GLOBAL OPERATIONS MANAGEMENT From the graph provided above, it clearly states that the 5- period moving average forecasts the demands more efficiently than the 3- period moving average. Which of the above forecasts is best? Why? The forecast that is believed to be best for the ABC Floral Shop is the 5- period moving average. The reason why this type of forecast was chosen as satisfactory is because the graph doesnt represent so much inconsistency in the numbers. As the graph shows, the forecast for the 3- period moving average shows that the numbers are continuously going up and down. This may be hard to try and make a conclusion based off of this type of forecasting method. Therefore, this company should utilize the other forecasting method provided....
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This note was uploaded on 03/08/2012 for the course MGMT 415-1201B- taught by Professor Smotherman during the Spring '12 term at American InterContinental University.

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Global Operations Management - GLOBAL OPERATIONS MANAGEMENT...

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