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1. A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented below:
a. Draw the total cost lines for the three optionsb. Indicate over what range each of the alternatives A,B,C is the low-cost choicec. For the production of 250 units, which site is the best?
Cost A B CFixed ($) 400 1,000 2,000Variable ( $ per unit) 12 8 4
2. Use exponential smoothing with a=0.2 to calculate the forecast for July from the data below.
Period DemandJanuary 10February 8March 7April 10May 12June 9
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