(20 Marks) 2.1 The planning team has provided you with the following information and requires you to use the exponential smoothing with trend adjustment technique to forecast deliveries for one of the Cadbury Schweppes subsidiaries for period 10. Let alpha=0.4, beta = 0.2, and let the initial trend value be 4 and the initial forecast be 200. (10 marks) QUESTION 2 Period Actual Demand Store Advertising Sales 1 (X, Y) 200 212 Size (Employees) QUESTION 4 1 14 6 2 A B 2 C 11 3 3 2.2 Cadbury Schweppes owns and operates a chain of 12 vegetable protein "hamburger" outlets in northern Louisiana. Sales figures and advertising expenses for the stores are provided in the table below. Sales are given in millions of dollars; advertising expenses are in tens of thousands of dollars. Calculate a regression line for the data. What is your forecast of sales for a store with advertising spending of R240,000? R300,000? (10 marks) (5,5) 214 2500 3 15 5 4 4 222 5 16 5 24 5 B 236 (0,5) 15 18 1000 6 28 6 FC (R) 50,000 221 100,000 60,000 7 22 17 C 7 (0, 0) 240 10,000 8 21 QUESTION 3 (20 Marks) 3.1 Cadbury Schweppes is considering where in town to house its central office (the office must also be located at an existing factory for cost reasons). If there are five factories in the district, with locations and size given in the following table, use the center-of-gravity method to determine at which factory the central office should be placed to minimize the average distance between the office and employees. (8 marks) Location A 8 9 244 26 43 12 15 20 10 D (5,0) 9 4500 250 11 34 1 14 1.4 10 3.2 Cadbury Schweppes is considering three expansion options. The first is to do nothing (Option A). The next is to leave the current plant open and also open a new larger plant (Option B). Finally, they could close the existing plant and open the new, larger one (Option C). Given the variable costs (VC) and fixed costs (FC) from the table below, calculate the range for which each option minimizes cost. (12 marks) Option VC (R/unit) 2 266 12 E 9 5 (2,1) 7500 (20 Marks) 4.1 The Global Manager for Operations as Cadbury Schweppes has requested you to perform an ABC analysis on the following set of products. (8 marks)