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Forecasting for the Jersey Dairy Products Company
The Jersey Dairy Products Company produces cheese, which it sells to supermarkets and food processing companies. because of concernes about cholesterol and fat in cheese, the company has seen demad for its products decline during the past decade. It is now considering introducint some alternative low fat dairy products and wants to determine how much available plant capacity it will have next year. The company has developed an exponential smoothing forecast with a=.40 to foecast cheese demand. The actual demand and the forecasts from the model are as follows.
Year Demand(1,000 lb) Forecast1 16.8 -2 14.1 16.83 15.3 15.74 12.7 15.55 11.9 14.46 12.3 13.47 11.5 12.98 10.8 12.4
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