2) Develop forecasts for FY2023 using the two forecasting methods currently employed by Throx. a) What are the forecast values that you calculated for each? Please be sure to show work. b) What forecast do you recommend using? Please provide your rationale. c) Are there other considerations or recommendations that you would recommend to Throx about their forecast. PLEASE INCLUDE FORMULAS USED in EXCEL FORMAT. Trying to verify if formulas used were correct.
2) Develop forecasts for FY2023 using the two forecasting methods currently employed by Throx. a) What are the forecast values that you calculated for each? Please be sure to show work. b) What forecast do you recommend using? Please provide your rationale. c) Are there other considerations or recommendations that you would recommend to Throx about their forecast. PLEASE INCLUDE FORMULAS USED in EXCEL FORMAT. Trying to verify if formulas used were correct.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
2) Develop forecasts for FY2023 using the two
a) What are the forecast values that you calculated for each? Please be sure to show
work.
b) What forecast do you recommend using? Please provide your rationale.
c) Are there other considerations or recommendations that you would recommend to
Throx about their forecast.
PLEASE INCLUDE FORMULAS USED in EXCEL FORMAT. Trying to verify if formulas used were correct.
Transcribed Image Text:Product Forecasting Information
Throx uses two main forecasting methods based on annual data to predict orders for the following
year, a weighted moving average and exponential smoothing. The table below provides forecast
calculations for FY2017 through FY2020, along with actual demand experienced in each of those years.
2019
2020
2021
2022
Actual
Demand
(Three Sock
Sets)
19,525
23,750
30,722
34,950
Weighted Moving
Average Fcst
15,500
17,215
21,155
27,088
Exponential
Forecast
16,300
19,203
23,295
29,979
Weighted Moving Average uses W₁ = 0.6, W₁-1=0.2, W₁-2=0.2
Exponential Smoothing uses a = 0.9 and 1-α = 0.1
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