2. Fastway is a parcel delivery company based inPretoria. It measures demand on a weekly basis interms of the number of parcels which it is given todeliver (irrespective of the size of each parcel). Theforecast for week 20 is 63. The table below showsactual demands for Fastway.WeekActual demand206321622267236624672569266527712868296830703172326633683467Predict the forecast for week 35 using an exponentialsmoothing with a smoothing constant of 0.20.

Forecasting is the process of prediction in which sales demand is estimated using historic…

Answered: Predict the forecast for week 35 using…

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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Similar questions

in order to forecast a demand pattern that has a significant trend but no seasonality you can use both double exponential smoothing and regression. what is the advantage of using double exponential smoothing over regression?
Sales of Bluetooth Headphones at the Abdulla Electronics Enterprises in Model Town, India, over the past 4 months have been 100, 110, 120, and 130 units (with 130 being the most recent sales). Develop a moving-average forecast for next month, using following techniques: a) 3-month moving average. b) 4-month moving average. c) Weighted 4-month moving average with the most recent month weighted 4, the preceding month 3, then 2, and the oldest month weighted 1. d) If next month’s sales turn out to be 140 units, forecast the following month’s sales (months) using a 4-month moving average.
Below is data of lobster sales volume from a seafood company. We are using exponential smoothing (α = 0.5) and 3-year moving average to forecast it. Please fill the blanks above and write your processes below. What are the mean absolute deviations (MADs) of the two methods? Which method will you choose based on the results?
Forecasting with exponential smoothing has been compared to driving a car while gazing in the rearview mirror. What circumstances must exist for driving a car that are equivalent to the assumptions made while applying exponential smoothing.
The Fieldale Dairy produces cheese, which it sells to su-permarkets and food processing companies. Because of concerns about cholesterol and fat in cheese, the companyhas seen demand for its products decline during the pastdecade. It is now considering introducing some alternativelow-fat dairy products and wants to determine how much available plant capacity it will have next year. The com-pany has developed an exponential smoothing forecast with 0.40 to forecast cheese. The actual demand andthe forecasts from its model are shown as follows: Assess the accuracy of the forecast model using MAD and cu-mulative error, and determine if the forecast error reflects bias using a tracking signal and 3 MAD control limits. If the ex-ponential smoothing forecast model is biased, determine if a linear trend model would provide a more accurate forecast.
From the choice of simple moving average, weighted moving average, exponential smoothing, and linear regression analysis, which forecasting technique would you consider the most accurate? Why?
Give an example of forecasting a pet store
A bakery called Sweet Treats operates in a busy downtown area. It is trying to decide whether to add another oven to its kitchen next year. The number of cakes baked over the last four quarters are as follows: Q1 = 950, Q2 = 1,100, Q3 = 1,050, and Q4 = 1,200 cakes. The forecast for cakes baked in the second quarter was 1,000 cakes. a) What is the forecast for the fifth quarter using exponential smoothing with a = 0.15? b) Given only what you learned in a, should the bakery add another oven?
Sales for Pandora’s Jewellery for the past three months have been 200,350, and 287. Usea three-month moving average to calculate a forecast for the fourth month. If the actual demandfor month 4 turns out to be 300, calculate the forecast for month 5.
Explain and give an example of a weighted average in forecasting
Discuss what advantages as a forecasting tool does exponential smoothing have over moving averages?

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Predict the forecast for week 35 using an exponential smoothing with a smoothing constant of 0.20.