Question: Use exponential smoothing with trend adjustment to forecast demand for period 11. Let = 0.5, = 0.3, and let the initial trend value be 12
Use exponential smoothing with trend adjustment to forecast demand for period 11. Let = 0.5, = 0.3, and let the initial trend value be 12 and the initial forecast be 200.
| Period | Actual Demand |
| 1 | 200 |
| 2 | 212 |
| 3 | 214 |
| 4 | 222 |
| 5 | 236 |
| 6 | 221 |
| 7 | 240 |
| 8 | 244 |
| 9 | 250 |
| 10 | 266 |
2. A restaurant has tracked the number of meals served at lunch over the last four weeks. The data show little in terms of trends, but do display substantial variation by day of the week. Use the following information to determine the seasonal (daily) indices for this restaurant. Round all numbers in your calculations to four decimal places.
|
| Week | |||
| Day | 1 | 2 | 3 | 4 |
| Sunday | 40 | 35 | 39 | 43 |
| Monday | 54 | 55 | 54 | 59 |
| Tuesday | 61 | 60 | 65 | 64 |
| Wednesday | 72 | 77 | 78 | 74 |
| Thursday | 89 | 80 | 81 | 79 |
| Friday | 91 | 90 | 99 | 95 |
| Saturday | 80 | 82 | 84 | 83 |
3. Jim's department at a local department store has tracked the sales of a product over the last ten weeks. Forecast demand using exponential smoothing with an alpha of 0.4, and an initial forecast of 25.0 for period 1. Calculate the MAD covering periods 1-10. Calculate the tracking signal covering periods 1-10. What do you recommend?
| Period | Demand |
| 1 | 24 |
| 2 | 23 |
| 3 | 26 |
| 4 | 37 |
| 5 | 26 |
| 6 | 30 |
| 7 | 32 |
| 8 | 27 |
| 9 | 25 |
| 10 | 28 |
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