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Archie's Restaurant Archie's Restaurant uses exponential smoothing to prepare a monthly forecast of each individual product. In addition, regional managers develop forecasts for each of
Archie's Restaurant Archie's Restaurant uses exponential smoothing to prepare a monthly forecast of each individual product. In addition, regional managers develop forecasts for each of four product families: burgers, chicken, hoagies, and pizza. The individual forecasts and product family forecast are given below. (a) Calculate a roll-up of the individual forecasts and compare it to the regional manager's product family forecast. (b) Roll up the average unit price for the Chicken product family. Top management has decided to set a total sales forecast of $60,000. Use the method demonstrated in Figure 4.15 for questions (c) and (d) below. (c) Force the $60,000 total sales forecast back down to product families (in dollars). (d) Force the $60,000 total sales forecast back down to individual products (in dollars and units). Product Forecast Family Product Burgers Regular Super Super-Duper Chicken Regular Cajun Hoagies Italian French American Pizza Cheese Pepperoni Forecast (units) 1,100 2,950 1,400 1,800 2,300 1,800 1,250 1,400 850 $/Unit 1.20 1.80 2.15 2.75 3.00 4.00 4.50 4.25 2.00 2.50 1,300 Product Family Forecast Family $ Sales Burgers 11,000 Chicken 14,000 Hoagies 21,000 Pizza 6,000
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