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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
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 records were: September (1400), August (1000), July (1200), June (800). a. Given initial forecast at launch was 600 packets, what is the forecast of sprinkle packets for October? Period F_(t-1) A_(t-1) F_t 4-mo SMA June - - 600 600 July 600 800 600 August 1200 600 September 1000 600 October 1400 1100 b. Are your monthly forecasts F_t always better (closer to actual demand) than the forecasts obtained from 4-months simple moving average
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