Problem Assignment

Demand Forecasting

(Total points: 10)

Historical demand for a product is as follows:

Time Period	Month	Demand
1	April	60
2	May	55
3	June	75
4	July	60
5	August	80
6	September	75

1. Using single exponential smoothing with =0.2 and a July forecast = 65, calculate the forecast for October. (3 points)

2. Using linear regression analysis, calculate the trend line (using least squares equation) for the above data. (5 points)

3. Calculate a forecast for October using the regression equation obtained in part (b). (2 points)