3. National Mixer, Inc., sells can openers. Monthly sales for a seven-month period wereas follows: ,SalesMonth(000 units)Feb.19Mar.181520182220Apr.MayJun.Jul.Aug.a. Plot the monthly data on a sheet of graph paper.b. Forecast September sales volume using each of the following:(1) A linear trend equation.(2) A five-month moving average.(3) Exponential smoothing with a smoothing constant equal to .20, assuming a Marchforecast of 19,000.(4) The naive approach.(5) A weighted average using .60 for August, .30 for July, and .10 for June.Which method seems least appropriate? Why?d. What does use of the term sales rather than demand presume?C....

Note: - Since we can answer only up to three subparts we will answer the first three subparts (a, b…

Answered: 3. National Mixer, Inc., sells can…

Contemporary Marketing

18th Edition

ISBN:9780357033777

Author:Louis E. Boone, David L. Kurtz

Publisher:Louis E. Boone, David L. Kurtz

Chapter14: Pricing Strategies

Section14.2: Forecasting Demand

Problem 1LO

See similar textbooks

Similar questions

Under what conditions might a firm use multiple forecasting methods?
Handy, Inc., produces a solar-powered electronic calculator that has experiencedthe following monthly sales history for the first four months of the year, inthousands of units:January 23.3 March 30.3February 72.3 April 15.5a. If the forecast for January was 25, determine the one-step-ahead forecasts forFebruary through May using exponential smoothing with a smoothing constant of a=.15.b. Repeat the calculation in part (a) for a value of a= .40. What difference in theforecasts do you observe?c. Compute the MSEs for the forecasts you obtained in parts (a) and (b) forFebruary through April. Which value of a gave more accurate forecasts, basedon the MSE?
Al Maha Plastic manufacturing Companies last Six weekly values of Sales were 90, 110, 115, 135, 140, 150 and 160 units. Forecasts (same for all the six weeks) were 110 units for all the weeks. Calculate MAD, and Tracking Signal for these six weeks. Wee k Actual Sales Forecaste d Sale Error Cumulative Error Absolute Error Cumulative Absolute Error MAD Tracking Signal 1 2 3 4 5 6 7
A newly operated company producing household items would want to forecast its sales volume for the next month. It has been in operation for ten (10) months now. For the past ten (10) months, forecast and sales data for its top selling Item A are as follow: Time Period Forecasted Value Actual Sales (Quantity) 10th month 405 345 9th month 400 380 8th month 410 400 7th month 370 375 6th month 330 360 5th month 320 325 4th month 320 315 3rd month 305 300 2nd month 290 295 1st month 300 280 The operations manager observes the fluctuations on the sales quantity over the 10-month period that the company is in operation. To forecast for the 11th month, the team decided to evaluate options on what forecasting method to use. Their options are: To use the Moving Average Method using the sales data for the past 10 months, To use the Exponential Smoothing Average assigning a smoothing constant of .6 and To use the Trend-adjusted Exponential Smoothing assigning smoothing constants α =…
Show solutions. 1. If actual recent demand was 41.5, using the focus forecasting approach, the forecast technique to use for next period is __ The technique and its forecast are as follows: Weighted moving average 40Moving average 43Exponential smoothing 41 2. LMN Company actual sales for january was 1588 units, but was forecast at 1599. The forecast error is __ units. 3. The 4-period moving average forecast for period 6 is __ Period Demand1 402 403 434 415 42
1. Omar has heard from some of his customers that they will probably cut back on order sizes in thenext quarter. The company he works for has been reducing its sales force due to falling demand andhe worries that he could be next if his sales begin to fall off. Believing that he may be able to convince his customers not to cut back on orders, he turns in an optimistic forecast of his next quartersales to his manager. What are the pros and cons of doing that?
The table shows the values found in the error analysis. What method of forecasting would be best to use? What is the forecasted value? MSE forecast for week 13 Time Series 1.08 14.76 3-week MA 3.04 13.67 exp smoothing 11.04 9.5 Group of answer choices A.) Time Series, forecasted value = 14.76 B.) 3-week MA, forecasted value = 13.67 C.) exp smoothing, forecasted value = 9.5 D.) Time Series, forecasted value = 1.08 E.) 3-week MA, forecasted value = 3.04 F.) exp smoothing, forecasted value = 11.04
Bradley's Copiers sells and repairs photocopy machines. The manager needs weekly forecasts of service calls so that he can schedule service personnel. Use the actual demand in the first period for the forecast for the first week so error measurement begins in the second week. The manager uses exponential smoothing with alpha = 0.5 Forecast the number of calls for week 6, which is next week. Week Actual service calls 1 28 2 36 3 38 4 25 5 25 The forecast for week 6 is ___ service calls (round to two decimals and show your work)
11. Consider the following actual and forecast demand levels for Big Mac hamburgers at a local McDonald's restaurant: Day Actual Demand Forecast Demand Monday 88.00 88.00 Tuesday 72.00 88.00 Wednesday 68.00 84.00 Thursday 48.00 80.00 Friday − ? Part 2 The forecast for Monday was derived by observing Monday's demand level and setting Monday's forecast level equal to this demand level. Subsequent forecasts were derived by using exponential smoothing with a smoothing constant of 0.25. Using this exponential smoothing method, the forecast for Big Mac demand for Friday is __________ Big Macs (round your response to one decimal place).
3. A large Portland manufacturing would like to forecast the monthly demand for a piece of pollutioncontrol equipment. Suppose the monthly sales figures for the past five months have been as follows:Month 1 2 3 4 5Actual Demand 14 17 20 21 25a. Make a forecast for 6th month using a three-period moving average (MA). What would be the forecastfor 6th month?b. The manager would like to use simple exponential smoothing to forecast. Use alpha = 0.25. Whatwould be the forecast for 6th month?c. Find the better forecast out of Moving Average and Simple Exponential Smoothing
Q5) Monthly sales for a six month period are as follows: Month SalesJan 18,000Feb 22,000Mar 16,000Apr 18,000May 20,000June 24,000 Compute the sales forecast for July using the following approaches: (1) Four-month moving average; (2) Weighted three-month moving average using .50 for June, .30 for May and .20 for April;(3) Exponential smoothing with α (smoothing constant) equal to .40, assuming a February forecast of 18,000
Explain the trade-off between responsiveness and stability in a forecasting system that uses time-series data. Who needs to be involved in preparing forecasts? 3. How has technology had an impact on forecasting? What capability would an organization have to have to not need forecasts? Give three examples of unethical conduct involving forecasting and the ethical principle each violates

SEE MORE QUESTIONS

Recommended textbooks for you

Contemporary Marketing

Marketing

ISBN:

9780357033777

Author:

Louis E. Boone, David L. Kurtz

Publisher:

Cengage Learning

Marketing

ISBN:

9780357033791

Author:

Pride, William M

Publisher:

South Western Educational Publishing

Contemporary Marketing

Marketing

ISBN:

9780357033777

Author:

Louis E. Boone, David L. Kurtz

Publisher:

Cengage Learning

Marketing

ISBN:

9780357033791

Author:

Pride, William M

Publisher:

South Western Educational Publishing

SEE MORE TEXTBOOKS