In order to take advantage of favorable deals, a student-run computer company, purchases generic computer parts...
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In order to take advantage of favorable deals, a student-run computer company, purchases generic computer parts in bulk from various online sources. Consequently, it becomes important for them to generate accurate demand forecasts to ensure timely procurement and inventory management. The start-up has so far collected the demand data for the past 12 months. Based on the given data, develop the following type of forecasts: Period 1 2 3 4 5 6 7 8 9 10 11 12 Month Demand January February March 37 40 41 April 37 May 45 June 50 July 43 August 47 September 56 October 52 November 55 December 54 a) Compute exponential smoothing forecasts, using smoothing constants equal to 0.30 and 0.50. b) Based on the results on Q3(a), interpret the results of both smoothing constants by plotting the period against the demand. What conclusions can be derived from the two In order to take advantage of favorable deals, a student-run computer company, purchases generic computer parts in bulk from various online sources. Consequently, it becomes important for them to generate accurate demand forecasts to ensure timely procurement and inventory management. The start-up has so far collected the demand data for the past 12 months. Based on the given data, develop the following type of forecasts: Period 1 2 3 4 5 6 7 8 9 10 11 12 Month Demand January February March 37 40 41 April 37 May 45 June 50 July 43 August 47 September 56 October 52 November 55 December 54 a) Compute exponential smoothing forecasts, using smoothing constants equal to 0.30 and 0.50. b) Based on the results on Q3(a), interpret the results of both smoothing constants by plotting the period against the demand. What conclusions can be derived from the two
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To compute exponential smoothing forecasts for the given demand data we will use the following formulas Exponential smoothing forecast Ft for a period ... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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