Question
After graduating from college, you and your friends started selling birdhouses made from recycled plastic. The idea has caught on, as shown by the following
After graduating from college, you and your friends started selling birdhouses made from recycled plastic. The idea has caught on, as shown by the following sales figures
Month | Demand |
March | 2200 |
April | 2300 |
May | 2500 |
June | 3500 |
July | 4000 |
August | 5000 |
a. (3pts). Develop a forecast model for June through September by using an adjusted exponential smoothing model with =0.6 and =0.3. Assume that the unadjusted forecast (Ft) for May was 2,260 and the trend factor (Tt) for May was 18. (Using two decimals)
Month | Unadjusted exponential smoothing model | Trend factor (Tt) | Adjusted exponential smoothing model |
March |
|
|
|
April |
|
|
|
May | 2260 | 18 |
|
June |
| (0.3* |
|
July |
|
|
|
August |
|
|
|
September |
|
|
|
b (3 pts). Calculate the tracking signals for periods June through August.
| Actual demand | Adjusted exponential smoothing model | Forecast error | Absolute deviation |
| MAD | Tracking signal |
June | 3500 |
|
|
|
|
|
|
July | 4000 |
|
|
|
|
|
|
August | 5000 |
|
|
|
|
|
|
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