Your manager is trying to determine what forecasting method to use. Based upon the following historical data, calculate the following forecast and specify what procedure you would utilize. Month Actual Demand16226536746871737768.7878108011841285 d. Calculate the exponential smoothing with trend component forecast for periods 2 to 12 using an initial trend forecast (T|) of 1.8, aninitial exponential smoothing forecast (Fj) of 60, an a of 0.30, and a d of 0.30.

Given information Month Actual Demand 1 62 2 65 3 67 4 68 5 71 6 73 7 76 8 78…

Answered: Month Actual Demand 1 62 2 65 3 67 4 68…

Business

Operations Management

Month Actual Demand 1 62 2 65 3 67 4 68 5 71 73 7 76 8. 78 9. 78 10 80 11 84 12 85

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter6: Target Markets: Segmentation And Evaluation

Section: Chapter Questions

Problem 17DRQ: Under what conditions might a firm use multiple forecasting methods?

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Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

Your manager is trying to determine what forecasting method to use. Based upon the following historical data, calculate the following forecast and specify what procedure you would utilize.

Month Actual Demand
1
62
2
65
3
67
4
68
71
73
7
76
8.
78
78
10
80
11
84
12
85

d. Calculate the exponential smoothing with trend component forecast for periods 2 to 12 using an initial trend forecast (T|) of 1.8, an
initial exponential smoothing forecast (Fj) of 60, an a of 0.30, and a d of 0.30.

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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