The GE Companys 12 products are further grouped into four product families and the manager has the exponential smoothing forecasts of monthly demand for each product with price. Products A, B, and C compose family l and demand of 100, 150, and 200 units with the price of $100, $120, and $90 per unit respectively; D, E, and F compose family 2 and demand of 500, 105, and 200 units with the price of $50, $200, and $90 respectively; G, H, and I compose family 3 and demand 100, 180, and 220 units with the price of $250, $100, and $100 respectively; and products J, K, and L make up family 4 and demand 80, 100, and 200 units with the price of $250, $360, and $190 respectively. - - GEs sales force has also come up with the monthly forecasts of sales for each product family as $50,000, $50,000, $75,000, and $75,000 respectively.

a. Roll up the individual product forecasts and compare them to the forecast provided by the sales force. Using a spreadsheet, roll down the forecast to make the individual item forecast agree with the sales force forecast. Calculate dollar value and a number of units in the individual item forecast.

b. The 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 roll down the forecast to the individual item level. Calculate dollar value and a number of units in the individual item forecast.

c. Suppose a top-management meeting produces a decision that the family forecast for product family 3 (products G, H, and I) in the problem cant be increased. At the same meeting, the companys overall forecast ($300,000) is maintained. Roll the forecasts up and down to determine the dollar and unit forecasts.