The manager of the Carpet City outlet needs to make an accurate forecast of the demand for Soft Shag carpet (its biggest seller). If the manager does not order enough carpet from the carpet mill, customers will buy their carpet from one of Carpet City's many competitors. The manager has collected the following demand data for the past 8 months:Demand for Soft ShagMonth Carpet (1,000 yd.) 1 8 2 12 3 7 4 9 5 15 6 11 7 10 8 12Compute the exponentially smoothed forecast (a = .20) for the given data. Compute an adjusted exponentially smoothed forecast (with a = .20 and β = .20) for the given data

Exponential smoothing forecast is extension of simple moving average forecast. In exponential…

Answered: Demand for Soft Shag Month…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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The manager of the Carpet City outlet needs to make an accurate forecast of the demand for Soft Shag carpet (its biggest seller). If the manager does not order enough carpet from the carpet mill, customers will buy their carpet from one of Carpet City's many competitors. The manager has collected the following demand data for the past 8 months:

Demand for Soft Shag

Month Carpet (1,000 yd.)

1 8

2 12

3 7

4 9

5 15

6 11

7 10

8 12

Compute the exponentially smoothed forecast (a = .20) for the given data. Compute an adjusted exponentially smoothed forecast (with a = .20 and β = .20) for the given data

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