Stardollars has recently introduced a new line of drink that features yummy sprinkles on top. Each drink requires 1 packet of the sprinkles. This drink is becoming very popular very fast, and Stardollars would like to forecast demand using an exponential smoothing forecast method with = 0.5. Previous actual sales record were: September (1400), August (1000), July (1200), June (800).

a. Given initial forecast at launch in June was 600 packets, what is the forecast of sprinkle packets for October?

b. Are your monthly forecasts Ft always better (closer to actual demand) than the forecasts obtained from 4-months simple moving average?

Period	Ft-1	At-1	Ft	4-mo SMA
June	-	-	600	600
July	600	800		600
August		1200		600
September		1000		600
October		1400		1100