Sales of the Flying Flintmobile has been increasing over the past five years. The operations manager has estimated sales in 2017 to be 410 Flying Flintmobiles. Using exponential smoothing with a weight of α = 0.30, forecasts have been developed for 2017 through 2022. Year          Sales     Forecast 2016        450          N/A 2017       495           410 (given) 2018       518           (0.3 x 495)+(0.7 x 410) = 435.5 2019       563           (0.3x518)+(0.7x435.5) = 460.25 2020       584           (0.3x563)+(0.7x460.25) = 491.075 2021                         (0.3x584)+(0.7x491.075) = 518.9525   1. Caution the manager on the limitations associated with your forecast.

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Sales of the Flying Flintmobile has been increasing over the past five years. The operations

manager has estimated sales in 2017 to be 410 Flying Flintmobiles. Using exponential smoothing

with a weight of α = 0.30, forecasts have been developed for 2017 through 2022.

Year          Sales     Forecast

2016        450          N/A

2017       495           410 (given)

2018       518           (0.3 x 495)+(0.7 x 410) = 435.5

2019       563           (0.3x518)+(0.7x435.5) = 460.25

2020       584           (0.3x563)+(0.7x460.25) = 491.075

2021                         (0.3x584)+(0.7x491.075) = 518.9525

 

1. Caution the manager on the limitations associated with your forecast. 

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