Production & Operations Management – MGT613 TABLEbelow shows its annual sales, demand and production demand over the period 1998 to 2005 (For both canvas and parachute material tents). TABLE , ANNUAL VALUES OF SALES, DEMAND AND PRODUCTION FOR PAKORG YEAR 1998 1999 2000 2001 2002 2003 2004 2005 SALES 214,200 202,100 192,500 189,000 198,300 213,400 241,400 231,100 DEMAND 150,000 155,000 125,000 200,000 225,000 245,000 175,000 185,000 PRODUCTION 155,000 155,000 185,000 185,000 185,000 185,000 185,000 185,000 Identify the sales trend over the period shown Do the demand figures show cyclical fluctuations? What happens on the sales trend if there is a prolong summer or a tragic incident like an earthquake or a flood. COMPUTEa three year and five year moving average demand forecast for both types of tents for the last five years (2001 to 2005). The management provides a smoothing constant value of 0.1 and 0.6 and asks to record the differences between actual and forecaster demand values. The spread is narrow and wider for which smoothing constant
