A large Portland manufacturer wants to forecast demand for a piece of pollution-control equipment. A review of past sales
A large Portland manufacturer wants to forecast demand for a piece of pollution-control equipment. A review of past sales
(At),
as shown below, indicates that an increasing trend is present. Smoothing constants are assigned the values of
α
=
0.20
and
β
=
0.4.
The firm assumes the initial forecast for month 1
(F1)
was
11.00
units and the trend over that period
T1
was
2.00
units.Using trend-adjusted exponential smoothing, Forecasts
(Ft),
Trend
(Tt),
and Forecasts Including Trend
(FITt)
for months 1 through 6 have already been developed and are provided below. Continue with the process and determine
Ft,
Tt,
and
FITt
for months 7 through 9 (round your responses to two decimal places):
Month
(t)
Actual Demand
(At)
Forecast
(Ft)
Trend
(Tt)
Forecast Including Trend
(FITt)
1
12.0
11.00
2.00
13.00
2
17.0
12.80
1.92
14.72
3
23.0
15.18
2.10
17.28
4
18.0
18.42
2.56
20.98
5
25.0
20.38
2.32
22.70
6
21.0
23.16
2.50
25.66
7
32.0
enter your response here
enter your response here
enter your response here
8
28.0
enter your response here
enter your response here
enter your response here
9
36.0
enter your response here
enter your response here
enter your response here
10
−
−
−
−
Complete Answer:
