CASE EXERCISE: 4. "Demand Forecasting for an Insurance Company" For the past five years, an insurance company processed an average of 25,000 insurance claims annually. In 2010, the claims processed are shown below: Category of claims No. of claims adjuster personnel Claims Processed processed Non-life Insurance 9,350 9 4,880 15,000 Life Insurance 12 Health care Insurance Since there is a direct relationship between the number of claims adjusters needed and the category of claims processed, the insurance manager referred to their past years experiences. The Manager anticipates an increase in work load because the company is acquiring a small insurance business. the following data represent the manager's projection of the number of claims to be processed next year. Non-life insurance claims Life insurance claims | Health care insurance claims 12,350 10,500 21,000 Questions: 1. What demand forecasting method should the manager use? 2. Using this method, calculate the demand for claims adjusters for next year.
CASE EXERCISE: 4. "Demand Forecasting for an Insurance Company" For the past five years, an insurance company processed an average of 25,000 insurance claims annually. In 2010, the claims processed are shown below: Category of claims No. of claims adjuster personnel Claims Processed processed Non-life Insurance 9,350 9 4,880 15,000 Life Insurance 12 Health care Insurance Since there is a direct relationship between the number of claims adjusters needed and the category of claims processed, the insurance manager referred to their past years experiences. The Manager anticipates an increase in work load because the company is acquiring a small insurance business. the following data represent the manager's projection of the number of claims to be processed next year. Non-life insurance claims Life insurance claims | Health care insurance claims 12,350 10,500 21,000 Questions: 1. What demand forecasting method should the manager use? 2. Using this method, calculate the demand for claims adjusters for next year.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section: Chapter Questions
Problem 40P: The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels....
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing