8. A forecast of the peoduct demand is an optional function and only very large

Question

8. A forecast of the peoduct demand is an optional function and only very large multi- nationals generate demand forecasts for their products.. True False 9. The sum of the weights in a weighted moving average forecast a. must equal the number of periods being averaged b. must be less than or equal to 1.00 e. must be exactly equal to 1.00 d. must be greater than or equal to 1.00 e. none of the above The cycle time is the maximum time that a work station is allotted in an assembly line 10. True False Please answer the next two short essay questions using one or two sentences. Correct but answers will get only partial credit. Each correct answer here is worth 5 points 11. Explain why having a high inventory turmover is an advantage to a company 12. Explain why a data that is provided on a yearly basis cannot have seasonal fluctuations?

Explanation / Answer

8 A forecast of the product demand is an optional function and only very large multiple nationals generates demand forecast for their product

Ans: true

9. The sum of the weight in a weighted moving average forecast

Ans: must be exactly equal to 1.00 ©

10. the cycle time in the minimum time that a work station is allocated in an assembly line

Ans: false

11 explain why having a high inventory turnover is an advantage to a company

Ans: No business can operate without inventories. It needs inventory as a protection against uncertainty, for efficient processing of material, and to permit transit and handling .So the companies carry inventory for following reasons

Uncertainty of demand:

Uncertainty of demand and lead time necessitate building of safety stock. These are also called as ³buffer stocks´. Larger the uncertainty of demand and supply; the larger will have to be the amount of buffer stock. Inventories protect him against unforeseen failures in supply or increase in demand. Even a tire on a supplier is delivery truck could interrupt production if it delayed a shipment of needed material. Inventories protect production against non anticipated delays.

Uncertainty in lead-time:

The supplier is usually not in a position to supply goods as per decided dates or as he promises. In the context of the vendors in India it is observed that there is a rather rare supplier who supplies as per promises and of the quality essential. This situation leads too stock the quantity.

Time lag in deliveries:

Time lag in deliveries also necessitates building of inventories. If the replenishment lead times are positive then stocks are needed for system operation.4.

Stock built up for scale of economy:

Stocks may be maintained to get the economy of scale so that total system cost due to ordering, carrying inventory and backlogging are minimized. Unit cost normally is lowest when material is purchased, handled, and processed in large quantities, which in turn generates larger inventories. In addition, inventories act as a ³cushion´ between operations or  processes.

Pipeline inventory:

Stock may build up as a pipeline inventory or work-in-process inventory due to continuation of production and transportation rates. This includes materials actually being worked on or moving between work centers or being in transit to distribution centra and customers

12. Explain why a data that is provided on a yearly basis cannot have seasonal fluctuation

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