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Demand history for the past three years is shown below, along with the seasonal indices for each quarter. Year Quarter Demand Seasonal Index Year 1
Demand history for the past three years is shown below, along with the seasonal indices for each quarter.
| Year | Quarter | Demand | Seasonal Index |
|---|---|---|---|
| Year 1 | Q1 | 319 | 0.762 |
| Q2 | 344 | 0.836 | |
| Q3 | 523 | 1.309 | |
| Q4 | 435 | 1.103 | |
| Year 2 | Q1 | 327 | 0.762 |
| Q2 | 341 | 0.836 | |
| Q3 | 537 | 1.309 | |
| Q4 | 506 | 1.103 | |
| Year 3 | Q1 | 307 | 0.762 |
| Q2 | 349 | 0.836 | |
| Q3 | 577 | 1.309 | |
| Q4 | 438 | 1.103 |
Use exponential smoothing with alpha () = 0.35 and an initial forecast of 417 along with seasonality to calculate the Year 4, Q1 forecast.
what is year 4, Q1 forecast?
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Financial Accounting International Financial Reporting Standards Global Edition
Authors: Charles T. Horngren, C. William Thomas, Wendy M. Tietz, Themin Suwardy, Walter T. Harrison
11th Edition
