b)

EV

Develop an adjusted exponential forecast for a firm with the demand for bread as shown in the table below. 10marks

Week 1 2 3 4 5 6 7 8

Demand 700 685 648 717 713 728 754 762

Let = 0.1 and = 0.2. Previous average of Ft1= 650, and let the initial trend adjustment, Tt1 = 0

c) CR Management of Daviss Department Store has used time-series extrapolation to forecast retail sales for the next four quarters. The sales estimates are $100,000, $120,000, $140,000, and $160,000 for the respective quarters before adjusting for seasonality. Seasonal indices for the four quarters have been found to be 1.30, 0.90, 0.70, and 1.10, respectively. Compute a seasonalized or adjusted sales forecast. 4marks