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Use exponential smoothing with alpha (a) = 0.2 and an initial forecast of 297 along with seasonality to calculate the Year 4, Q1 forecast.

Use exponential smoothing with alpha (a) = 0.2 and an initial forecast of 297 along with seasonality to calculate the Year 4, Q1 forecast.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter10: Introduction To Simulation Modeling
Section: Chapter Questions
Problem 41P: At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 =...
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Demand history for the past three years is shown below, along with the seasonal indices for each quarter. Seasonal Index Year Year 1 Year 2 Year 3 Quarter Q1 02 03 04 Q1 02 Q3 04 01 Q2 Q3 04 Demand 225 253 392 310 229 242 391 360 220 256 400 288 0.756 0.845 1.327 1.075 0.756 0.845 1.327 1.075 0.756 0.845 1.327 1.075 Do not round intermediate calculations. Round your answer to the nearest whole number. Use exponential smoothing with alpha (a) = 0.2 and an initial forecast of 297 along with seasonality to calculate the Year 4, Q1 forecast.
Transcribed Image Text:Demand history for the past three years is shown below, along with the seasonal indices for each quarter. Seasonal Index Year Year 1 Year 2 Year 3 Quarter Q1 02 03 04 Q1 02 Q3 04 01 Q2 Q3 04 Demand 225 253 392 310 229 242 391 360 220 256 400 288 0.756 0.845 1.327 1.075 0.756 0.845 1.327 1.075 0.756 0.845 1.327 1.075 Do not round intermediate calculations. Round your answer to the nearest whole number. Use exponential smoothing with alpha (a) = 0.2 and an initial forecast of 297 along with seasonality to calculate the Year 4, Q1 forecast.
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