• An acceptable tracking signal target for Donnas business is +/- 2.5. The forecast for five months is constant at 650 and each for these six months deviations (differences) compared to the forecast are -40, +80, +90, -30, +80 and +40. Determine which of the months are compliant which the target. Make sure to show all calculations.

2. Susie Jones runs a snack stand in her neighborhood. She sells lemonade, cookies, and chips. Lemonade sells for $4.25 and cookies and chips sell for $.70 each. Susies variable cost for lemonade is $2.05, for cookies is $.26 and for chips is $.30. Susies annual fixed cost is $4,500 and the snack stand is open 70 days each year. She expects to sell 600 glasses of lemonade, 300 cookies, and 200 bags of chips. What is the break-even point in dollars? Also, what are the average daily sales?

3. Demand for 48 months has the following averages J 80 F 60 M 70 A 20 M 46 J 23 J 21 A 20 S 80 O 60 N 60 D 10. Create a seasonal index to come up with a month-by-month forecast for the next year that has expected annual demand of 400.

4. Demand for the year is 10,000, order cost is $20, annual carrying cost is 20%, and cost per unit for 0-499 units is $5, 500-999 is $4.50, and 1,000 up is $3.90. What is the optimal order quantity?

5. Talk about the trade-offs in a firm creating their own capacity as compared to paying someone else to create capacity and then renting (paying for capacity as needed). You should be able to come up with at least three distinct issues that are important.