Answered: We are predicting quarterly sales for…

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

We are predicting quarterly sales for soda at Gordon’s
Liquor Store using Winter’s method. We are given the
following information:
Seasonality factors: fall 0.8 spring 1.2
winter 0.7 summer 1.3
Current base estimate 400 cases per quarter
Current trend estimate 40 cases per quarter
a 0.2 b 0.3 g 0.5
Now sales of 650 cases during the summer quarter are
observed.

a Use this information to update the estimates of base,
trend, and seasonality.

b After observing the summer demand, forecast de-
mand for the fall quarter and the winter quarter.

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