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Numerical Exercises
Break Even Analysis
Productivity (single factor & multifactor)
Forecasting ( Monthly/ Moving average and smoothening- alpha)
Time series / Linear Regression (Straight line equation - find a and b using equation or excel function (regression from data ana

Forecast is done using the equation

Correlation (Use correlation function in data analysis)
Seasonality component to the time series data / trend
multiply the seasonality index with forecast data (with monthly averages)
draw a graph between actual sales, forecast data (with equation) and seasonally adjusted forecast
Forecast Accuracy - Mean Absolute Deviation is used to select the accuracy methods better - MAD value should be minimum
MAD is the average value of absolute error (Difference between demand and forecast)
Multiple Regression Method -> Y = a + b1 X + b2 X
Facility location - problems
Transportation problems - using solver
Smoothening

alpha if not given

values range -> 0.1 t o 0.5 - for start ups
values range -> 0.6 t o 1 - for established companies
Correlation

Correlation coefficient
 Breakeven analysis with facility location fixed cost Cost of construction, Electricity, taxes
Total cost =fixed cost + variable cost variable cost Transport, cost of materials, labor
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Fix the location based on low cost of production take construction cost according to interest rate
Total cost of A = Total cost of B
Q=FC/SP-VC Critical units

Balance = 1 - efficiency

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27000
600
nstruction, Electricity, taxes
, cost of materials, labor
o interest rate