List of formulas:

• Simple moving average method: Ft+1 = (Dt + Dt-1 + Dt-2 + + Dt-n+1)/n
• Weighted moving average method: Ft+1 = W1D1 + W2D2 + + WnDt-n+1
• Exponential smoothing method: Ft+1 = Ft + (Dt Ft)

Demands for a newly developed salad bar at the PQR restaurant for the first four months of this year are shown in the table below. Round to three decimal places.

---------------------------------- Month Demand ----------------------------------

January 67 February 58 March 71 April 65 ----------------------------------

Use the problem statement and table to answer the questions below.

Question:

Using the exponential smoothing method with an alpha equal to 0.4, what is the forecast for May? [Note: An initial value for the forecast is given. The forecasted demand for March is 63 units.]

A. 65.720

B. 68.033

C. 71.860