National Mixer, Inc., sells can openers. Monthly salesfor a seven-month period were as follows:MonthSales (000 units)Feb19Mar18AprMay1520Jun18JulyAug.2220 a. Plot the monthly datab. Forecast September sales using:i. A linear trend equationii. A five-month moving averageiii. Exponential smoothing, a = 0.2, assume March forecast of19 (000).iv. The naïve approach.V. A weighted moving average using 0.6 for Aug., 0.3 for July,and 0.1 for June.

Answered: a. Plot the monthly data b. Forecast…

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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Q1) Forecasting is both art and science. Describe the situations where we use Qualitative forecasting techniques and quantitative forecasting techniques
The Toro Cutlery Company has collected monthly sales information below: MONTH January February March April The company is examining two forecasting methods, moving average and exponential smoothing for forecasting sales. a. What will the forecast be for January the following year using a three-, four-, and five-month moving averages? Do not round intermediate calculations. Round your answers to the nearest whole number. Forecast (January, 3-month MA): 87667 Forecast (January, 4-month MA): 72500 Forecast (January, 5-month MA): 69600 b. What will the forecast be for January the following year using exponential smoothing with a = 0.6? Assume the forecast for February this year is 25,000. Do not round intermediate calculations. Round your answer to the nearest whole number. SALES 25,000 18,000 43,000 110,000 MONTH May June July August SALES MONTH 84,000 September 28,000 October 97,000 November 58,000 December SALES 27,000 105,000 82,000 76,000
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a. Plot the monthly data b. Forecast September sales using: i. A linear trend equation ii. A five-month moving average iii. Exponential smoothing, a = 0.2, assume March forecast of