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Identify the sales trend over the period shown

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Reference no: EM131026339

Production & Operations Management - MGT613

Table below shows its annual sales, demand and production demand over the period 1998 to 2005 (For both canvas and parachute material tents).

 

TABLE , ANNUAL  VALUES OF  SALES, DEMAND AND PRODUCTION FOR PAKORG

YEAR

1998

1999

2000

2001

2002

2003

2004

2005

SALES

214,200

202,100

192,500

189,000

198,300

213,400

241,400

231,100

DEMAND

150,000

155,000

125,000

200,000

225,000

245,000

175,000

185,000

PRODUCTION

155,000

155,000

185,000

185,000

185,000

185,000

185,000

185,000
  1. Identify the sales trend over the period shown
  2. Do the demand figures show cyclical fluctuations?
  3. What happens on the sales trend if there is a prolong summer or a tragic incident like an earthquake or a flood.
  4. Compute a three year and five year moving average demand forecast for both types of tents for the last five years (2001 to 2005).
  5. The management provides a smoothing constant value of 0.1 and 0.6 and asks to record the differences between actual and forecaster demand values. The spread is narrow and wider for which smoothing constant?

Reference no: EM131026339

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