C . A sneaker manufacturer has plotted sales and the representative demand forecast of its most popular
Question:
C. A sneaker manufacturer has plotted sales and the representative demand forecast of its most popular brand of sneakers over the past three months. You work in the Demand Management department, and you are in charge for demand forecasting for this particular brand.
--> 1C) Use 3-month moving average (MA(3)) to forecast demand of months 4 to 7 (i.e., forecast made at the end of month 3 for month 4, forecast made at the end of period 4 for period 5, …, forecast made at the end of period 6 for period 7 (i.e., calculate y4, y5, y6,y7). (show your calculations)
--> 2C) Use Exponential Smoothing with a smoothing parameter α = 0.3 (denoted ES(0.3)) to forecast demand of month 4 to 7. You are required to calculate the forecast made at the end of month 3 for month 4, forecast made at the end of period 4 for period 5,…, forecast made at the end of period 6 for period 7 (i.e., calculate y4, y5, y6,y7). Also notice that in the exponential smoothing, to calculate y4, you need y3= 62. (show your calculations)
NOTE: Round the forecast values to two decimal places.
Month | Actual Sales | Forecast | Forecast |
MA(3) | ES(0.3) | ||
1 | 56 | ||
2 | 76 | 56 | |
3 | 58 | 62 | |
4 | 67 | ||
5 | 75 | ||
6 | 76 | ||
7 |
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr