solution

Frotello’s needs to forecast the number of customers it should be prepared to serve. The manager has determined that exponential smoothing using an alpha value (a) of 0.65 is the most appropriate forecasting technique. Use that technique and the information below to forecast the number of customers for Weeks 14 & 15. Show your work below. Round your Forecasts to integer values.

Ft+1= Ft+ ?(At–Ft)

Or Ft= Ft-1+ ?(At-1–Ft-1)

What is your forecast for Week 15? Show your work below. Round to an integer value and then fill in your answer in the table above also.

Now assume that the actual demand in Week 15 was 120. What is your forecast for Week 16? Show your work below. Round to an integer value and then fill in your answer in the table above also.