2. (SHOW YOUR COMPLETE WORK) The actual demand data for a product being sold at a...

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2. (SHOW YOUR COMPLETE WORK) The actual demand data for a product being sold at a local electronics retailer during the past eight months are shown below: MONTH ACTUAL DEMAND (number of units sold) Eight months ago 525 Seven months ago Six months ago Five months ago Four months ago Three months ago 521 527 520 518 525 Two months ago 523 One month ago 526 THIS MONTH ACTUAL DEMAND NOT KNOWN Determine the demand forecast for THIS MONTH using each of the following methods: a. A 5-month moving average. [4 points] b. A 4-month weighted moving average using weights of 21, 6, 2, and 1 for one month ago, two months ago, three months ago, and four months ago, respectively. (Hint: the higher weights are applied to the more recent time periods.) [9 points] c. Exponential smoothing using the following: smoothing constant, a = 0.4 and the demand forecast for three months ago = 523 units. [12 points] Use the appropriate label/unit of measurement in your answers. Leave the numbers in decimals and go up to 5 decimal places for higher accuracy. 3. (SHOW YOUR COMPLETE WORK) A manager at a superstore has been monitoring the demand for a product. The actual demand data during the last five months are shown below: MONTH Five months ago Four months ago Three months ago Two months ago One month ago ACTUAL DEMAND (number of units sold) 213 204 199 190 185 THIS MONTH ACTUAL DEMAND NOT KNOWN Use trend-adjusted exponential smoothing to obtain the demand forecast for THIS MONTH. Use the following: Exponentially smoothed forecast five months ago = 219 units Exponentially smoothed trend estimate five months ago = -7 units The smoothing constants: a = 0.4, p = 0.5. [32 points] Use the appropriate label/unit of measurement in your answer. Leave the numbers in decimals and go up to 5 decimal places for higher accuracy. 2. (SHOW YOUR COMPLETE WORK) The actual demand data for a product being sold at a local electronics retailer during the past eight months are shown below: MONTH ACTUAL DEMAND (number of units sold) Eight months ago 525 Seven months ago Six months ago Five months ago Four months ago Three months ago 521 527 520 518 525 Two months ago 523 One month ago 526 THIS MONTH ACTUAL DEMAND NOT KNOWN Determine the demand forecast for THIS MONTH using each of the following methods: a. A 5-month moving average. [4 points] b. A 4-month weighted moving average using weights of 21, 6, 2, and 1 for one month ago, two months ago, three months ago, and four months ago, respectively. (Hint: the higher weights are applied to the more recent time periods.) [9 points] c. Exponential smoothing using the following: smoothing constant, a = 0.4 and the demand forecast for three months ago = 523 units. [12 points] Use the appropriate label/unit of measurement in your answers. Leave the numbers in decimals and go up to 5 decimal places for higher accuracy. 3. (SHOW YOUR COMPLETE WORK) A manager at a superstore has been monitoring the demand for a product. The actual demand data during the last five months are shown below: MONTH Five months ago Four months ago Three months ago Two months ago One month ago ACTUAL DEMAND (number of units sold) 213 204 199 190 185 THIS MONTH ACTUAL DEMAND NOT KNOWN Use trend-adjusted exponential smoothing to obtain the demand forecast for THIS MONTH. Use the following: Exponentially smoothed forecast five months ago = 219 units Exponentially smoothed trend estimate five months ago = -7 units The smoothing constants: a = 0.4, p = 0.5. [32 points] Use the appropriate label/unit of measurement in your answer. Leave the numbers in decimals and go up to 5 decimal places for higher accuracy.