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Problem 3. After plotting demand for four periods, an emergency room manager has concluded that a trend- adjusted exponential smoothing model is appropriate to predict
Problem 3. After plotting demand for four periods, an emergency room manager has concluded that a trend- adjusted exponential smoothing model is appropriate to predict future demand. The initial estimate of trend is based on the net change of 30 for the three periods from 1 to 4, for an average of +10 units. Use a 5 and B = 4, and TAF of 250 for period 5. Obtain forecasts for periods 6 through 10. Period Actual Period Actual 210 224 6 7 8 265 272 285 294 229 240 255 9 10 Problem 4. A producer of felt-tip pens has received a forecast of demand of 30,000 pens for the coming month from its marketing department. Fixed costs of $25,000 per month are allocated to the felt-tip opera- tion, and variable costs are 37 cents per pen. a. Find the break-even quantity if pens sell for $1 each. b. At what price must pens be sold to obtain a monthly profit of $15,000, assuming that estimated demand materializes
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