Supply Chain Management
Question 1. (Allow 3 pages for answers)
The following table lists the weightings representing the relative importance of factors for the location of a retail site. Four potential sites have been given a score out of 100 for each factor:
Factor Weight A B C D
Construction cost 0.1 90 60 80 70
Operating cost 0.1 90 80 90 85
Population density 0.4 70 90 80 75
Convenient access 0.2 75 80 90 90
Ranking area 0.2 60 70 85 75
Rank the four sites in order of their total weighted points score for suitability for the proposed location.Question 2. (Allow 3 pages for answers)
Here are 2 years of quarterly data on demand for cement from a retailer.
Quarter Year 1 Year 2
1 218 257
2 119 110
3 138 156
4 199 201a) Deseasonalize the data with four-quarters moving average (for center of data from 2.5 to 6.5), and compute a regression equation for the trend in demand
b) Compute the average seasonal index for each of the four quarters of a year.
c) Using the trend and seasonal indices you have developed, compute a forecast for the demand in each of the quarters of the following year.
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