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ECON483 Economics

(a) Provide a forecast by using a 3-year weighted moving average technique with weights 4, 2, and 1 (4 = most recent).

(b) Forecast sales using a 2-year moving average technique.

(c ) What is the MSE from the 2-year moving average?

Round answers to 3 decimal places.

  1. Wegmans Bakery produces cheesecake for sale. The bakery which operates 5 days per week and 52 weeks per year can produce cake at the rate of 40 cakes per day. The bakery sets up cake production operation and produces the predetermined quantity Q has been produced. The setup cost for a production run of cheesecake is $200. The holding cost is $10 per year. The annual demand for cheesecake is constant during the year and is equal to 2600. Determine the following: Round answers to the nearest whole number.(a) the optimal production run quantity (Q). 

(b) the total annual inventory cost (AHC + AOC). 
(c) the optimal number of production runs per year. 
(d) The run length (production run time)

A plastic parts supplier produces two types of plastic parts used for electronics. Type 1 requires 1 hour of labor and 2 hours of machine time. Type 2 requires 2 hours of machine time and 3 hours of labor. There are 600 hours available per week of labor and 800 machine hours available. The demand for custom molds and plastic parts are identical. Type 1 has a profit margin of $30 a unit and Type 2 has a profit margin of $50 

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