The Hughes Supply Company uses an inventory management method to determine the m
ID: 3173828 • Letter: T
Question
The Hughes Supply Company uses an inventory management method to determine the monthly demands for various products. The demand values for the 12 months of 2015 for one electrical fixture are shown below. The forecasted yield for January 2011 using a simple exponential smoothing model with a smoothing constant value of .2 and assuming that the forecast for December 2010 was 307.649 is
Month
Demand
January
February
March
April
May
June
July
August
September
October
November
December
205
251
304
284
352
300
241
284
312
289
385
256
Select one:
a. 297.32
b. 266.55
c. 300.12
d. 289.11
e. 234.66
Month
Demand
January
February
March
April
May
June
July
August
September
October
November
December
205
251
304
284
352
300
241
284
312
289
385
256
Explanation / Answer
as exponential smoothing forecast =actual of last month *alpha+(1-alpha)*forecast of last month
hence forecast of January =0.2*256+0.8*307.649=297.32
option A
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