Use exponential smoothing with alpha (a) = 0.2 and an initial forecast of 297 along with seasonality to calculate the Year 4, Q1 forecast.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Demand history for the past three years is shown below, along with the seasonal indices for each quarter.
Seasonal
Index
Year
Year 1
Year 2
Year 3
Quarter
Q1
02
03
04
Q1
02
Q3
04
01
Q2
Q3
04
Demand
225
253
392
310
229
242
391
360
220
256
400
288
0.756
0.845
1.327
1.075
0.756
0.845
1.327
1.075
0.756
0.845
1.327
1.075
Do not round intermediate calculations. Round your answer to the nearest whole number.
Use exponential smoothing with alpha (a) = 0.2 and an initial forecast
of 297 along with seasonality to calculate the Year 4, Q1 forecast.
Transcribed Image Text:Demand history for the past three years is shown below, along with the seasonal indices for each quarter. Seasonal Index Year Year 1 Year 2 Year 3 Quarter Q1 02 03 04 Q1 02 Q3 04 01 Q2 Q3 04 Demand 225 253 392 310 229 242 391 360 220 256 400 288 0.756 0.845 1.327 1.075 0.756 0.845 1.327 1.075 0.756 0.845 1.327 1.075 Do not round intermediate calculations. Round your answer to the nearest whole number. Use exponential smoothing with alpha (a) = 0.2 and an initial forecast of 297 along with seasonality to calculate the Year 4, Q1 forecast.
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