a. After 6 months of production, the company has been able to post the mid-year sales...

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a. After 6 months of production, the company has been able to post the mid-year sales figures presented in the table below. Using the exponential smoothing factor of a= 0.40, forecast the sales in July. Assume the January forecast sales as equal to the actual sales of January. Show all workings. Month Jan Feb March April May June Actual Sales ($) 4220 4278 5460 5275 4950 5315 Weight 0.05 0.05 0.08 0.1 0.2 0.3 b. Based on the sales forecasts calculated in 5(a) above, how is the company performing in comparison with the actual sales figures? Is the company moving in the right direction or not? Give justification(s) for your answer. a. After 6 months of production, the company has been able to post the mid-year sales figures presented in the table below. Using the exponential smoothing factor of a= 0.40, forecast the sales in July. Assume the January forecast sales as equal to the actual sales of January. Show all workings. Month Jan Feb March April May June Actual Sales ($) 4220 4278 5460 5275 4950 5315 Weight 0.05 0.05 0.08 0.1 0.2 0.3 b. Based on the sales forecasts calculated in 5(a) above, how is the company performing in comparison with the actual sales figures? Is the company moving in the right direction or not? Give justification(s) for your answer.

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Answer Step 1 With simple exponential smoothing the forecast is made up of the actual value for the ... View the full answer