Question: Actual sales and initial forecasts are given below. Your company is using alpha of 0.2and beta of 0.4for an adjusted exponential smoothing including trend model.Currently

Actual sales and initial forecasts are given below. Your company is using alpha of 0.2and beta of 0.4for an adjusted exponential smoothing including trend model.Currently you have been asked to determine if the existing adjusted exponential smoothing including trend model should be used ora 3 period weightedmoving average(use 0.5, 0.3, 0.2). a)Calculate the forecast for week 6 and 7using both methods.[8 points]b)Using quantitative reasoning,which method would you recommend and why? [3points]Use the table below as you need to answer the questions above.

Actual sales and initial forecasts are given

Week Actual Sales Forecast ES Trend Adjusted Forecast (including Trend) 1 12 11 2 13.00 2 17 12.80 1.92 14.72 3 20 15.18 2.10 17.28 4 19 17.82 2.32 20.14 5 24 19.91 2.23 22.14 6 21 7

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!