Which method should be used to forecast demand for product

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Reference no: EM131160031

The ZenoFex is a manufacturer of electronic parts used in telecommunication industry. The demand for a special semiconductor produced in this firm in last 11 periods is given in Table 1.

Table 1 Semiconductor Demand in last 11 periods

Period

Semiconductor

1

48

2

55

3

59

4

61

5

66

6

70

7

73

8

78

9

86

10

89

11

93

The firm uses a production process in which the dimension of the semiconductor (in millimeter) is monitored using x-bar and R charts. 12 samples of n=3 observations have been gathered which are shown in Table 2.

Table 2 Sample Observations

Sample

Observation 1

Observation 2

Observation 3

1

26.6

24.8

25.2

2

27.2

26.6

26.2

3

25.7

27.3

25.9

4

26.2

28.3

28.2

5

25.9

24.6

16.4

6

28.2

26.6

25.9

7

24.5

27.3

24.5

8

26.6

28.3

26.1

9

27.3

28.3

26.6

10

28.3

24.6

27.3

11

24.6

26.6

28.3

12

26.5

27.3

24.6

According to the customer requirements all semiconductors with dimensions between 26 and 27 mm are acceptable. The process population is normally distributed.

Based on the above information answer the following questions:

a. Among the following three forecasting methods, which method should be used to forecast the demand for this product? Why?
- Simple moving average n = 3
- Exponential Smoothing with alpha = 0.4
- Exponential Smoothing with trend Adjustment (alpha = 0.2, beta = 0.4, T1 = 5, F1
= 49)

Note: Please show all calculation and graphs and explain the steps

b. Is the production process in control? Why?
c. Is the production process capable? Why?
d. What proportion of the production in this process will meet customer requirements?

Verified Expert

This task provides a brief explanation on various forecasting techniques and quality control tools. The 3 month moving average forecasting technique is used to forecast the value for nth period by taking the average of (n – 1), (n – 2) and (n – 3) periods. Trend is the long-term sweep or general direction of movement in a time series.

Reference no: EM131160031

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Reviews

mad1160031

8/23/2016 3:55:15 AM

Regret for my previous message! I got problem D as well, Thanks tutor for quality work. I appreciate your effort and time and will use in future assignment.

mad1160031

8/23/2016 3:54:25 AM

Thanks for solution! I found, good quality work, Just wanna request for a solution at part D. I just realised there were no any solutions presented.

joh1160031

8/22/2016 4:26:34 AM

Your answer should be in Excel file with formulas/calculations. it will be better if you can give me both Excel and word document.

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