Question: Hi-Tek Computer Services repairs and services personal computers at its store, and it makes local service calls. It primarily uses part-time students as technicians. The
Hi-Tek Computer Services repairs and services personal computers at its store, and it makes local service calls. It primarily uses part-time students as technicians. The company has had steady growth since it started. It purchases generic computer parts in volume at a discount from a variety of sources whenever they see a good deal. Thus, they need a good forecast of demand for repairs so that they will know how many computer component parts to purchase and stock, and how many technicians to hire.
The company has accumulated the demand data shown in the accompanying table for repair and service calls for the past 12 months, from which it wants to consider exponential smoothing forecasts using smoothing constants () equal to 0.30 and 0.70. They also want to know if there is a trend effect and are considering an adjusted exponential smoothing forecast with trend using an () equal to 0.40 and () of 0.30.
A) Using each method, what is the forecast for next May
Pls do it step by step so i can follow along
| Month | Demand | ES |
| ES |
| Adjusted (AF) ES (w/Trend) | |||
|
|
| = 0.3 Ft |
| = 0.7 Ft |
| =0.4 Ft | =0.3 Tt |
AF |
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| January | 37 | - |
| - |
| - | - | - |
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| February | 40 | 37 |
| 37 |
| 37 | 0 | 37 |
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| March | 41 |
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| April | 38 |
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| May | 45 |
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| June | 50 |
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| July | 43 |
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| August | 47 |
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| September | 56 |
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| October | 53 |
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| November | 59 |
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| December | 57 |
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