Question: Use exponential smoothing with an alpha value of = 0.50 to obtain forecasted sales (F T ) for Jan 2015-Dec 2015 (i.e. months 85-96). Note

  1. Use exponential smoothing with an alpha value of = 0.50 to obtain forecasted sales (FT) for Jan 2015-Dec 2015 (i.e. months 85-96). Note that you will need the Actual Sales (AT) from Dec 2014 (i.e month 84) and a forecast from month 84 (use the Nave Method) to get the first exponential smoothing forecast. These values can be obtained from the data file provided. Insert your forecasted sales in the Exponential Smoothing Sales Forecast (FT) column in the Table 2 below. Next, calculate the forecast errors for Jan 2015-Dec 2015 (i.e. months 85-96). Insert your forecast error values in the Forecast Error (FET) column in Table below. For your submitted you can simply copy and paste the completed Table 2.

Table 2: 2015 Sales Data and Exponential Smoothing Forecast

Year Month Month # (T) Actual Sales (AT)
2014 Dec 84 21,951
2015 Jan 85 12,287
2015 Feb 86 11,519
2015 Mar 87 12,767
2015 Apr 88 13,235
2015 May 89 13,643
2015 Jun 90 13,552
2015 Jul 91 13,349
2015 Aug 92 10,240
2015 Sep 93 14,781
2015 Oct 94 17,123
2015 Nov 95 20,396
2015 Dec 96 23,609

  1. Use the data obtained in Table 2 to calculate the Mean Absolute Percentage Error (MAPE) for 2015 when using the Exponential Smoothing method to forecast sales.

  1. Which method would you recommend for Napa Valley Winery to use to forecast their sales? Justify your answer.

CAN YOU HELP WITH #1-#3 Please!!!!

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!