1. (6 Points) For what market condition is the capacity lagging the demand strategy suitable? Explain specifically and briefly. New capacity Demand Expected demand 2. (10 Points) You are now at the end of year 2018 and have observed the following demand of a product. Year Month Actual Demand 2018 1 1,412 2018 2 1,609 2018 3 1,859 2018 4 1,553 2018 5 1,931 2018 6 2,045 2018 7 1,836 2018 8 1,931 2018 9 2,231 2018 10 1,271 2018 11 1,609 2018 12 1,859 w You want to make a quarterly forecast of the product for each quarter in year 2019. Suppose you decide to use Winter's exponential smoothing for seasonality and have the following L, T, and S, values as the starting points. The exponential smoothing parameters are set as a = 0.3, B = 0.3, y = 0.3. a B 0.30 0.30 0.30 Year Quarter Lt Tt St 2017 2017 2017 2017 1 2 3 4 0.69 0.78 0.85 0.67 4,880 649 Calculate the forecast for each quarter in 2019. 1. (6 Points) For what market condition is the capacity lagging the demand strategy suitable? Explain specifically and briefly. New capacity Demand Expected demand 2. (10 Points) You are now at the end of year 2018 and have observed the following demand of a product. Year Month Actual Demand 2018 1 1,412 2018 2 1,609 2018 3 1,859 2018 4 1,553 2018 5 1,931 2018 6 2,045 2018 7 1,836 2018 8 1,931 2018 9 2,231 2018 10 1,271 2018 11 1,609 2018 12 1,859 w You want to make a quarterly forecast of the product for each quarter in year 2019. Suppose you decide to use Winter's exponential smoothing for seasonality and have the following L, T, and S, values as the starting points. The exponential smoothing parameters are set as a = 0.3, B = 0.3, y = 0.3. a B 0.30 0.30 0.30 Year Quarter Lt Tt St 2017 2017 2017 2017 1 2 3 4 0.69 0.78 0.85 0.67 4,880 649 Calculate the forecast for each quarter in 2019