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MGMT 3306Operations and Supply Chain ManagementAnswer all 4.1. A small manufacturing facility is being planned that will feed parts of three heavymanufacturing facilities in Houston. The location of the current plants with theircoordinates and volume requirements are given in the following table:Plant Location Coordinates Volume/ yearSugarland 300,320 4000Katy 375,470 6000Clearlake 470,180 3000Use the centroid method to determine the best location for this new facility.2. Please refer to the case study “Rochester Manufacturing‘s Process Decision” found atthe end of Chapter 7 on Process Strategy and Sustainability. Answer 1, 2, 3 of this casestudy. Stay focus on your answer to what is given in the case and your ownunderstanding from the reading of this chapter.3. Historical demand for a product isMonth DemandJan 12Feb 11Mar 15Apr 12May 16Jun 15a. Using a weighted moving average with weights 0.60, 0.30, and 0.10, find the Julyforecast.b. Using a simple three-months moving average, find July forecast.c. Using single exponential smoothing with Alpha = 0.2 and June forecast = 13, find theJuly forecast. Assume whatever you want to wish.d. Using simple linear regression (least square or trend analysis), calculate theregression equation and using this equation forecast for July.4. Item X is a standard item stocked in a company’s inventory of component parts. Eachyear the firm, on a random basis, uses about 2000 units of X which costs $25 each.Storage cost amounts to $5 per unity of average inventory. Every time an order is placedfor more item X, it costs $10.a. Whenever item X is ordered, what should be the order size?b. What is the annual ordering cost?c. What is the annual storing cost?

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