MONTH (t) ACTUAL DEMAND (A,) MONTH (t) ACTUAL DEMAND (A,) 1 12 6 21 17 7 31 3 20 8 28 4 19 9 36 5 24 10 Smoothing constants are assigned the values of a = .2 and ß = .4. The firm assumes the initial forecast average for month 1 (F) was 11 units and the trend over that period (T,) was 2 units.

MONTH (t) ACTUAL DEMAND (A,) MONTH (t) ACTUAL DEMAND (A,) 1 12 6 21 17 7 31 3 20 8 28 4 19 9 36 5 24 10 Smoothing constants are assigned the values of a = .2 and ß = .4. The firm assumes the initial forecast average for month 1 (F) was 11 units and the trend over that period (T,) was 2 units.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.6: Moving Averages Models

Problem 20P: The file P13_20.xlsx contains the monthly sales of iPod cases at an electronics store for a two-year...

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Question

A large Portland manufacturer wants to forecast demand for a piece of pollution-control equipment. A
review of past sales, as shown below, indicates that an increasing trend is present:

MONTH (t)
ACTUAL DEMAND (A,)
MONTH (t)
ACTUAL DEMAND (A,)
1
12
6
21
17
7
31
3
20
8
28
4
19
9
36
5
24
10
Smoothing constants are assigned the values of a = .2 and ß = .4. The firm assumes the initial forecast
average for month 1 (F) was 11 units and the trend over that period (T,) was 2 units.

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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