UNIVERSITY OF TECHNOLOGY, JAMAICA
COLLEGE:
BUSINESS AND MANAGEMENT
SCHOOL:
BUSINESS ADMINISTRATION
ASSIGMENT/TEST 1:
Semester 2 2022/2023
Module Name:
Supply Chain Management
Module Code:
POM 4010
Theory/ Practical:
Theory
Groups:
BBA4
Issue Date:
March 02, 2023
Due Date
INSTRUCTIONS: This exam contains 3 questions. You are required to do ALL
questions
You have 2 hours to complete and upload this exam.
Completed scripts must be uploaded to Moodle in the drop box labeled with your
TUTOR’S NAME
Responses should be done in the exam paper, below each question
Answers should be typed using 12 point font in Microsoft Word
Drawings and graphs may be done by hand and a picture uploaded in the required area
of the question
No pdf files will be accepted
This is an individual assignment. Students who cheat by exchanging answers will be
penalized
Due Date and time:
Late uploads will not be accepted
If you encounter problems with submission of your exam papers. You should screenshot
the error page from Moodle. Included in that screenshot should be your name and/or ID
number
Please Ensure your Name and ID number as well as your TUTOR’s name is written on
your response paper in the space provided above
QUESTION 1 (20 marks)
a) Elite Furnishings of Jamaica owns and operates twelve Furniture Distribution Centers
across The Caribbean Islands. There signature item is a Mahogany textured kitchen
counter accompanied by a Granite counter top. Sales (X, in millions of dollars) is related
to Profits (Y, in hundreds of thousands of dollars) by the regression equation
Y = 4.21 + 0.5 X.
Determine the forecast of profit for a store with sales of $20 million and $30 million
respectively.
(4 marks)
Y = 4.21 + 0.5 X.
where X=Sale
When X=$20 million
Y=4.21+0.5*20 =14.21 Million or 14,210,000
When X=$30 million
Y=4.21+0.5*30 =19.21 Million or 19,210,000
b) The Forecasting unit at a local department store has tracked the sales of a product over
the last ten weeks and has obtained data as shown in table 1.
i
Forecast demand using exponential smoothing with an alpha of 0.4, and an initial
forecast of 28.0 for period 1.
(8 marks)
ii
Calculate the MAD
.
(3 marks)
32.03/9=3.56
iii
If the manager at Elite believes that an Alpha value of 0.3 would be more
appropriate. What recommendations would you give the manager? (5 marks)
Table 1
Period
Demand
1
24
2
23
3
26
4
36
5
26
6
30
7
32
8
26
9
25
10
28
QUESTION 2 (10 marks)
Discuss the differences of push and pull supply chain processes.
QUESTION 3 (20 marks)
Based on the data collected from 30 shops island-wide by the producers of a new brand of
vegetable loaf as at December 2010, the regression analysis was run which produced the
summary output below:
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.95241325
7
R Square
0.90709101
2
Adjusted R
Square
0.67542505
8
Standard Error
1.76713117
7
Observations
30
ANOVA
Df
SS
MS
F
Significance
F
5.78000
0
0.00024154
6
P-value
Lower 95%
4
135.9587
33.9896
8
Residual
25
46.84129
3.12275
3
Total
29
182.8
Regression
Coefficients
Standard
Error
t Stat
Intercept
-4,650.0001
2.002465
1.07E07
X Variable 1
-20.0005248
19.50003
0.00219
2
-0.1340466
X Variable 2
30.0001546
1.400000
0.67158
2
-0.2092916
-0.12816526
-0.02444292
X Variable 3
6.95000038
0.080001
0.00975
2
X Variable 4
0.3000075
0.220010
0.23738
1
Given:
Q = Quantity sold per month
X1 
P(in cents) = Price of the product = 900
X2  Py (in cents) = Price of leading competitor’s product = 850
20.4256009
X3  I (in dollars) = per capita income of the persons in the area in which the shops are located
= 16,500.
X4 E (in dollars) = Monthly advertising expenditure = 10,000
Using the information above,
a)
Develop the linear regression model for the Quantity of Vegetable Loaves demand
per month.
b)
What is the quality of the model (estimator) developed?
c)
What is the relationship and the strength of the relationship between
Demand for the Vegetable Loaves and the Independent Variables as a
group?
d)
Compute the t-statistics for each variable and state whether it is statistically
significant at the 5% level.
e)
Forecast the Demand for Vegetable Loaves using the model developed in
part a), based on the given information.
End of Test