Question
A large Quebec manufacturer wants to forecast demand for a piece of pollution-control equipment. A review of past sales ( At ), as shown below,
A large Quebec 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
=0.2
and
=0.4.
The firm assumes the initial forecast for month 1
(F1)
was
13.00
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 | 14.0 | 13.00 | 2.00 | 15.00 |
2 | 18.0 | 14.80 | 1.92 | 16.72 |
3 | 24.0 | 16.98 | 2.02 | 19.00 |
4 | 18.0 | 20.00 | 2.42 | 22.42 |
5 | 24.0 | enter your response here | enter your response here | enter your response here |
6 | 22.0 | enter your response here | enter your response here | enter your response here |
7 | 30.0 | |||
8 | 28.0 | |||
9 | 38.0 | |||
10 |
|
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