After reviewing the forecasting demonstration and looking over the slides, complete the following case activity and transfer your answers to the appropriate questions in the Canvas activity quiz. You have been hired as a demand planning intern for Hawaiian Island Creations (HIC). They want you to de- velop a forecast for their HIC Papanui style of sun- glasses. The goal is to determine how many pair they will produce to meet retailer demand in July 2021. During your first meeting, you were handed some data to work with and the product team talked about the company's upcoming promotional blitz to support Summer Break 21 in major vacation destinations. Month Forecast Demand January 2021 4,000 3,300 February 2021 4,200 3,900 March 2021 4,500 4,300 April 2021 4.800 4,200 May 2021 5.000 5.400

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Week 3 Bonus Activity-
DEMAND FORECASTING CASE STUDY
After reviewing the forecasting demonstration and
looking over the slides, complete the following case
activity and transfer your answers to the appropriate
questions in the Canvas activity quiz.
You have been hired as a demand planning intern for
Hawaiian Island Creations (HIC). They want you to de-
velop a forecast for their HIC Papanui style of sun-
glasses. The goal is to determine how many pair they
will produce to meet retailer demand in July 2021. During
your first meeting, you were handed some data to work
with and the product team talked about the company's
upcoming promotional blitz to support Summer Break '21
in major vacation destinations.
Month
Forecast
Demand
January 2021
4.000
3,300
February 2021
4,200
3,900
March 2021
4,500
4,300
April 2021
4.800
4,200
May 2021
5 000
5.400
of 4
P Type here to search
立
Transcribed Image Text:Tools View Week 3 Bonus Activity- DEMAND FORECASTING CASE STUDY After reviewing the forecasting demonstration and looking over the slides, complete the following case activity and transfer your answers to the appropriate questions in the Canvas activity quiz. You have been hired as a demand planning intern for Hawaiian Island Creations (HIC). They want you to de- velop a forecast for their HIC Papanui style of sun- glasses. The goal is to determine how many pair they will produce to meet retailer demand in July 2021. During your first meeting, you were handed some data to work with and the product team talked about the company's upcoming promotional blitz to support Summer Break '21 in major vacation destinations. Month Forecast Demand January 2021 4.000 3,300 February 2021 4,200 3,900 March 2021 4,500 4,300 April 2021 4.800 4,200 May 2021 5 000 5.400 of 4 P Type here to search 立
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Week 3 Bonus Activit
Three-Month Weighted Moving Average
Weight factors t-1=.6
t-2=.3
1-3= 1
Exponential Smoothing
Alpha smoothing constant = .7
Which method do you recommend that the company use when forecasting July 2021 demand? Explain why you
selected this method.
Evaluate the company's forecast accuracy over the last three months.
3-4 of 4
Type here to search
Transcribed Image Text:Tools View Week 3 Bonus Activit Three-Month Weighted Moving Average Weight factors t-1=.6 t-2=.3 1-3= 1 Exponential Smoothing Alpha smoothing constant = .7 Which method do you recommend that the company use when forecasting July 2021 demand? Explain why you selected this method. Evaluate the company's forecast accuracy over the last three months. 3-4 of 4 Type here to search
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