Question
A large Portland manufacturer wants to forecast demand for a piece of pollution-control equipment. A review of past sales ( At ), as shown below,
A large Portland manufacturer wants to forecast demand for a piece of pollution-control equipment. A review of past sales
(At),
as shown below, indicates that an increasing trend is present.Smoothing constants are assigned the values of
=
0.20
and
=
0.4.
The firm assumes the initial forecast for month 1
(F1)
was
9.00
units and the trend over that period
T1
was
2.00
units.
Using trend-adjusted exponential smoothing, Forecasts
(Ft),
Trend
(Tt),
and Forecasts Including Trend
(FITt)
for months 1 through 4 have already been developed and are provided below. Continue with the process and determine
Ft,
Tt,
and
FITt
for months 5 and 6 (round your responses to two decimal places):
Month (t) | Actual Demand (At) | Forecast (Ft) | Trend (Tt) | Forecast Including Trend (FITt) |
1 | 10.0 | 9.00 | 2.00 | 11.00 |
2 | 17.0 | 10.80 | 1.92 | 12.72 |
3 | 23.0 | 13.58 | 2.26 | 15.84 |
4 | 18.0 | 17.27 | 2.83 | 20.10 |
5 | 22.0 | ? | ? | ? |
6 | 21.0 | ? | ? | ? |
7 | 31.0 | ? | ? | ? |
8 | 28.0 | ? | ? | ? |
9 | 36.0 | ? | ? | ? |
10 | ? | ? | ? |
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