Chart Supply Chain Management



Chart Supply Chain Management

Solution to Question 3 (Pg # 267)

1

Demand

3 year MA

5 year MA

1

200

xxx

xxx

2

134

xxx

xxx

3

147

xxx

xxx

4

165

160.333

xxx

5

183

148.667

xxx

6

125

165

165.8

7

146

157.667

150.8

8

154

151.333

153.2

9

182

141.667

154.6

10

197

160.667

158

11

132

177.667

160.8

12

163

170.333

162.2

13

157

164

165.6

14

169

150.667

166.2

15

xxx

163

163.6



Comments on the Graph

The original demand graph shows no relationship in the data as the demand increases and decreases continuously for geraniums which certainly show no trend to predict any valuable forecast. More importantly the R - square of the forecasted model is extremely low i.e. 0.00002 which shows almost relation in the demand during different days. However, by finding the 3 year MA also didn't make the data to improve to an extent. In fact the R - square just improves to ...