Question

16.

Using a level production plan and the data below, calculate total ending inventory and total backorders, respectively.

Week 1 = 230

Week 2 = 250

Week 3 = 180

Week 4 = 170

Week 5 =200

Week 6 = 223

Week 7 = 224

Beginning inventory = 0

		8 and 270
		270 and 8
		52 and 104
		30 and 223
		8 and 220

17.

Which of the following variable is estimated in linear regression?

		Smoothing coefficient
		Dependent variable
		Independent variable
		Total number of employees
		Slope

Answer 1

Answer 16 ) Total Demand = (230 + 250 + 180 + 170 + 200 + 223 + 224) = 1477

By level production plan, estimated production for each week = (1477 / 7) = 211

Beginning Inventory = 0

Weeks	1	2	3	4	5	6	7
Production	211	211	211	211	211	211	211
Demand	230	250	180	170	200	223	224
Ending Inventory	0	0	0	14	25	13	0
Backorder	19	58	27	0	0	0	0

Total Ending Inventory = (14 + 25 + 13) = 52

Total Backorder = (19 + 58 +27) = 104

Answer 17) The value of a dependent variable is estimated via linear regression method. A linear equation is formed out of the trend values which includes the slope and intercept values. The value of the dependent variable is then calculated corresponding to the value of the independent variable as there exists a relation between the two variables.