Question

1.      A salesperson at a convenience store has been monitoring the demand for 1-gallon milk bottles of a particular brand. The actual demand during the last 5 weeks is shown below:

WEEK	ACTUAL DEMAND (number of milk bottles sold)
Five weeks ago	300
Four weeks ago	310
Three weeks ago	321
Two weeks ago	330
One week ago	340
THIS WEEK	ACTUAL DEMAND NOT KNOWN

Use trend-adjusted exponential smoothing to obtain the demand forecast for THIS WEEK. Use the following:

Exponentially smoothed forecast five weeks ago = 289 milk bottles

Exponentially smoothed trend estimate five weeks ago = 10 milk bottles

                                           The smoothing constants: = 0.4, = 0.5.

Answer 1