PYRAMID FORCASTING

The Gonzales Electric Companys 12 products are further grouped into four product families. Products A, B, and C compose family l Products D, E, and F compose family 2 Products G, H, and I compose family 3 Products J, K, and L make up family 4.

Gonzales has the following exponential smoothing forecasts of monthly demand for each product.

Family	Product	Forecast	$/Unit		Family	Product	Forecast	$/Unit
1	A	10	1000		3	G	100	250
	B	15	1200			H	180	100
	C	20	900			I	220	100
2	D	5	5,000		4	J	2	10,000
	E	3	7,000			K	4	9,000
	F	2	9,000			L	3	8,000

Gonzaless sales force has also come up with the monthly forecasts of sales for each product family. Family Sales ($) 1. 50,000 2 50,000 3 75,000 4 75,000

Top management has independently decided to set a $300,000 overall monthly sales goal for the company. Adjust the sales force forecast to reflect this new goal; then force/roll down the forecast to the individual item level. Calculate dollar value and number of units in the individual item forecast.