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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