ITM 601 Chapter Notes - Chapter 1: Square Root, Standard Deviation, Demand Forecasting

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 601
• Professor: Helen Chen

Document Summary

Part 1: the forecasing method that will be chosen is a heavily quanitaive weighted analysis method. This is due to the fact that it would accurately capture the apparently heavily luctuaing demand that is clearly occurring in a trending, seasonal way. In addiion, there is currently too much of a reliance of qualitaive methods to forecast demand. Consider the following calculaions under weighted demand forecasing: As can be seen, a, b, c, and d represent the demands provided. As such, our new demand table from months 1-12 can be found in column h. this is as a result of geing the weighted averages of each year in the thirteenth column and inding out yearly growth/drop paterns. Weekly demand average = 52 belts per week. Eqq analysis = square root of 2(2704)(10)/0. 97 = 236. Standard deviaion during lead ime demand = 3. 05 belts. Average demand for lead ime + safety stock = 161 belts.