Question: A dry cleaner uses exponential smoothing to forecast equipment usage as a percentage of capacity (i.e., utilization) at its main plant. August usage was forecast

A dry cleaner uses exponential smoothing to forecast equipment usage as a percentage of capacity (i.e., utilization) at its main plant. August usage was forecast to be 88 percent of capacity, whereas actual usage turned out to be 89.6 percent of capacity. A smoothing constant of 0.2 is used.

Prepare a forecast for September.

Assuming actual September usage of 92 percent, prepare a forecast for October's usage.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!