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Refer to Solved Problem. Using smoothing constants of .6 and .9, develop forecasts for the sales of VW Beetles. What effect did the smoothing constant have on the forecast?
Problem - The following gives the number of pints of type B blood used at Woodlawn Hospital in the past 6 weeks:
Week of
Pints Used
August 31
360
September 7
389
September 14
410
September 21
381
September 28
368
October 5
374
a) Forecast the demand for the week of October 12 using a 3-week moving average.
b) Use a 3-week weighted moving average, with weights of .1, .3, and .6, using .6 for the most recent week. Forecast demand for the week of October 12.
c) Compute the forecast for the week of October 12 using exponential smoothing with a forecast for August 31 of 360 and a = .2.
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