5. Two independent methods of forecasting based on judgment and experience have been prepared each month for the past 5 months. The forecasts and actual sales are as follows: a. Compute the MAD, MSE and MAPE for each forecast. Does either forecast seem to be superior? Explain. (Round off your numbers to two decimal places, e.g., 2.6742.67 ) b. Compute 2s control limits for each forecast and draw a control chart. Are the forecast errors with in control limits? Round off your numbers to two decimal places. 6. In SBS job shop, effective capacity is 50 percent of design capacity, and actual output is 80 percent of effective capacity. What design capacity would be needed to achieve an actual output of 12 units per week? 7. SBS Corporations plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each (no fixed cost) or to produce them in-house. In-house process would have an annual fixed cost of $190,000 and a variable cost of $4 per unit. Determine the range of annual volume for which each alternative (Vendor and in-house) would be the best to minimize total costs. 8. Jason must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,300 per day, while two machines will result in a fixed cost of $3,800 per day. Variable cost will be $20 per customer, and revenue will be $45 per customer. a. Determine the break-even point for each range. b. If estimated demand is 95 to 120 customers per day, how many machines should be purchased? 5. Two independent methods of forecasting based on judgment and experience have been prepared each month for the past 5 months. The forecasts and actual sales are as follows: a. Compute the MAD, MSE and MAPE for each forecast. Does either forecast seem to be superior? Explain. (Round off your numbers to two decimal places, e.g., 2.6742.67 ) b. Compute 2s control limits for each forecast and draw a control chart. Are the forecast errors with in control limits? Round off your numbers to two decimal places. 6. In SBS job shop, effective capacity is 50 percent of design capacity, and actual output is 80 percent of effective capacity. What design capacity would be needed to achieve an actual output of 12 units per week? 7. SBS Corporations plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each (no fixed cost) or to produce them in-house. In-house process would have an annual fixed cost of $190,000 and a variable cost of $4 per unit. Determine the range of annual volume for which each alternative (Vendor and in-house) would be the best to minimize total costs. 8. Jason must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,300 per day, while two machines will result in a fixed cost of $3,800 per day. Variable cost will be $20 per customer, and revenue will be $45 per customer. a. Determine the break-even point for each range. b. If estimated demand is 95 to 120 customers per day, how many machines should be purchased