1 / 12

Homework Solution Weighted Averages - Exponential Smoothing - Trend

MGMT E-5070. Homework Solution Weighted Averages - Exponential Smoothing - Trend. TM. Cool-Man Air Conditioners. Manual Computer-Based. Part A. Cool-Man Air Conditioners. Sales of Cool-Man air conditioners have grown steadily over the past five years:.

sook
Download Presentation

Homework Solution Weighted Averages - Exponential Smoothing - Trend

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MGMT E-5070 Homework SolutionWeighted Averages - Exponential Smoothing - Trend TM Cool-Man Air Conditioners Manual Computer-Based Part A

  2. Cool-Man Air Conditioners Sales of Cool-Man air conditioners have grown steadily over the past five years:

  3. Cool-Man Air Conditioners REQUIREMENT: • The sales manager had predicted, before the business started, that year 1’s sales would be 410 units. Using exponential smoothing with a weight of α = 0.30, develop forecasts for years 2 through 6 .

  4. Cool-Man Air Conditioner Exponential Smoothing 2nd Year 1st Year 1st Year 1st Year Forecast = Forecast + α ( Actual - Forecast ) = 410 units + 0.30 ( 450 units - 410 units ) = 410 units + 0.30 ( 40 units ) = 410 units + 12 units = 422 units

  5. Cool-Man Air Conditioner Exponential Smoothing 3rd Year 2nd Year 2nd Year 2nd Year Forecast = Forecast + α ( Actual - Forecast ) = 422 units + 0.30 ( 495 units - 422 units ) = 422 units + 0.30 ( 73 ) = 422 units + 21.9 units = 443.9 units

  6. Cool-Man Air Conditioner Exponential Smoothing 4th Year 3rd Year 3rd Year 3rd Year Forecast = Forecast + α ( Actual - Forecast ) = 443.9 units + 0.30 ( 518 units - 443.9 units ) = 443.9 units + 0.30 ( 74.1 ) = 443.9 units + 22.23 units = 466.13 units

  7. Cool-Man Air Conditioner Exponential Smoothing 5th Year 4th Year 4th Year 4th Year Forecast = Forecast + α ( Actual - Forecast ) = 466.13 units + 0.30 ( 563 units - 466.13 units ) = 466.13 units + 0.30 ( 96.87 ) = 466.13 units + 29.06 units = 495.19 units

  8. Cool-Man Air Conditioner Exponential Smoothing 6th Year 5th Year 5th Year 5th Year Forecast = Forecast + α ( Actual - Forecast ) = 495.19 units + 0.30 ( 584 units - 495.19 units ) = 495.19 units + 0.30 ( 88.8 ) = 495.19 units + 26.64 units = 521.83 units

  9. Cool-Man Air Conditioners REQUIREMENT: • Using the smoothing coefficients of 0.60 and 0.90, develop forecasts for the sales of Cool- Man air conditioners.

  10. Cool-Man Air Conditioners Smoothing coefficient ( α ) = 0.60

  11. Cool-Man Air Conditioners Smoothing coefficient ( α ) = 0.90

  12. Homework SolutionWeighted Averages - Exponential Smoothing - Trend Cool-Man Air Conditioners TM Manual Computer-Based Part A

More Related