Question: Item 1 2 3 5 6 7 Demand Week 1 Demand Week 2 Demand Week 3 Demand Week 4 5 0 9 3 7 4

Item123567Demand Week 1 Demand Week 2 Demand Week 3 Demand Week 4509374200112105108110507375201112111100106508372200111114119109116837323115120103104F(t+1)= QAt +(1- a) F+The information in the table above represents the sales for seven (7) items over the past four (4) weeks at Hog Retail. The management and Hog Retail would like to utilize the exponential smoothing technique to forecast. Observing the items in the above table, the company is concerned as one of the items lost over 50% of sales (demand) in week 4 because a supplier didn't ship them enough product to stock the shelves. In forecasting for the coming Week 5, the company would like to give more importance to the previous period's forecast than the previous period's demand. Provided this information, you would advise the company to a. Make a.=.2 for Item 1 b. Make a =.7 for Item 3 c. Make (1- a)=.7 for Item 3 d. Make (1- a)=.8 for Item 1

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