Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You join a demand planning team and one of your responsibilities is the quarterly planning of a B item. The item has been forecast assuming

You join a demand planning team and one of your responsibilities is the quarterly planning of a B item. The item has been forecast assuming level, trend, and seasonality using Holt-winter for many years. The underlying forecasting equation assumes that level and trend are additive and then the result is multiplicative with the seasonality. The seasonality is quarterly with Q1 being the lowest volume quarter and Q4 being the highest. The table below shows the relevant data. The far-right column x^(t-1,t) is the forecast for the current period. For example, the forecast for 2018 Q4 is 1,197. The historical smoothing constants used by your team for these parts are alpha=0.2, beta=0.1 and gamma=0.1.

Quarter x(t) a^(t) b^(t) F^(t) x^(t-1,t)
2018 Q4 2788 0.37 1197
2019 Q1 1374 0.15 2592
2019 Q2 2737 0.30 2437
2019 Q3 2410 9141 287 0.270
2019 Q4 3556

What is the forecast for 2019 Q3?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Architects Of Austerity International Finance And The Politics Of Growth

Authors: Aaron Major

1st Edition

0804790736, 9780804790734

More Books

Students also viewed these Finance questions