Question: Please answer this using excel. Quality Bikes is a wholesale firm that specializes in the distribution of bicycles. The company decides to use a inventory
Please answer this using excel.
Quality Bikes is a wholesale firm that specializes in the distribution of bicycles. The
company decides to use a inventory management system to reduce inventory levels
and minimize total variable inventory costs. At the same time, they implement a
computerized forecasting system based on statistical forecasting that considers
seasonal effects. The system is to generate two sets of forecastsone based on the
movingaverage method, a second based on the exponential smoothing method, and a
third based on exponential smoothing with seasonality. The average of these three
forecasts for each month is to be used for inventory management purposes.
The following table gives the available data on monthly sales of speed bicycles over
the past three years. The last column also shows monthly sales this year, which is the
first year of operation of the new forecasting system.
a points Determine the seasonal factors for the months based on past sales.
b points After considering seasonal effects, apply the movingaverage method
based on the most recent three months to forecast monthly sales for each month
of this year. Please create a forecasting graph for the movingaverage forecasting.
c points After considering seasonal effects, apply the exponential smoothing
method Alpha to forecast monthly sales this year. Please create a forecasting
graph for the exponential smoothing forecasting.
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