Dimayuga,Michael Jeffrey, D.

AC 104 (2:00 – 3:00 PM) MWF

Management Science

Forecasting is a tool used for planning that helps management in its

attempts to go with the uncertainty of what is next, depending on data from the
past and present and analysis of trends. Forecasting begins with assumptions that
are mainly based on experience, knowledge, and judgment. In our current
situation the government plan and needs to think if they need to extend the
quarantine and if all the budget will be enough and rightly placed.
Inventory management is the supervision of non-capitalized assets, or
inventory, and stock items. As a component of supply chain management,
inventory management supervises the flow of goods from manufacturers to
warehouses and from these facilities to point of sale. In our situation today, the
government on planning how they will give the Filipinos the goods and supplies
that they will need. Especially for people who has a low financial input.
Queuing or waiting in line is a critical part of service industry. It tackles the
issue of treatment of customers in sense reduce wait time and improvement of
service. Queue management deals with cases where the customer arrival is
random; therefore, service rendered to them is also random. In the situation
today, Filipinos are having a difficult time to survive because of the joblessness
this pandemic caused and the lack of supplies and food, so now they rely on the
government’s help with the “Ayuda” for them to somehow survive this pandemic.
 Exercise #1 Transportation Model

From/To A B C Supply
1 14 8 3 20
2 9 5 7 40
3 6 12 4 30
Demand 35 30 25 90

A. Northwest Corner Rule

From/To A B C Supply
1 20 14 20
2 15 9 25 5 40
3 6 5 12 25 4 30
Demand 35 30 25 90

Source-Destination Quantity Shipped x Total Cost

Combination Cost
1A 20 – 14 280
2A 15 – 9 135
2B 25 – 5 125
3B 5 – 12 60
3C 25 – 4 100
Total Transportation Cost P700

B. Minimum Least Method/ Least Cost Method

From/To A B C Supply
 1 20 3 20
2 10 9 30 5 40
3 25 6 5 4 30
Demand 35 30 25 90

Source-Destination Quantity Shipped x Total Cost

Combination Cost
1C 20 – 3 60
2A 5–4 20
2B 30 – 5 150
3A 25 – 6 150
3C 10 - 9 90
Total Transportation Cost P470

C. Vogel’s Approximation Model

From/To A B C Supply
1 14 8 20 3 20
 5 - - - -
2 10 9 30 5 7 40
3 25 6 12 5 4 30 2 2 2 9 -
Demand 35 30 25 90
2 2 2 6 6
Column
Differenc
e

3 3 1
3 7 3
3 - 3
3 - -
6 - -

Source-Destination Quantity Shipped x Total Cost

Combination Cost
1C 20 – 3 60
2A 5–4 20
2B 30 – 5 150
3A 25 – 6 150
3C 10 - 9 90
Total Transportation Cost P470