Please solve a and b part using excel method and explain the all steps.

Luxe Glasses Part I Luxe is a new optic store located in Florence which has been operating for a couple of years. Luxe is open for 6 days in a week and assume there are 48 weeks in a year. There are two types of glasses that Luxe sells: regular glasses and sunglasses. The distributor of the glasses is in China. It costs 3000 to place an order for regular glasses and 4000 to place an order for sunglasses. The lead time of the orders is expected to be six weeks. The orders of the regular glasses and sunglasses are independent from each other. For the regular glasses, Luxe records the demand data daily. However, it is almost always the case that the ordering decisions are given over the weekend. Luxe purchases one regular glasses for 40 and it costs 8 to keep one regular glasses for one year in the inventory. For the sunglasses, Luxe keeps the data of monthly sales. The unit cost of sunglasses is 60 and Luxe sells them for 150 per unit. Any unsold sunglasses on season is sold at discount for 40. The holding cost for sunglasses is 6 per unit per month. Sunglasses A) You are given the monthly demand data about the last three years' sales of sunglasses at the end of this document. Analyze the data to determine an appropriate method for forecasting monthly demands. Steps (Following the "Note of Forecasting" course document): Consider different forecasting methods that are applicable for the given data. Determine the initial parameter values of these methods based on the data available in the first two years. Compare these forecasting methods by calculating the one-step-ahead forecast errors in the third year. Use the MAD as the basis to compute forecast error. Find the most appropriate method and its parameter values. B) Using the best method found above, forecast the demand for January and February of the fourth year. Also, forecast the total demand over the fourth year. |