Suppose That Demand in Period 1 Was 7 Units and the Demand

question 114

Multiple Choice

Suppose that demand in period 1 was 7 units and the demand in period 2 was 9 units. Assume that the forecast for period 1 was for 5 units. If the firm uses exponential smoothing with an alpha value of .20, what should be the forecast for period 3? (Round answers to two decimal places.)

• A) 9.00
• B) 3.72
• C) 9.48
• D) 5.00
• E) 6.12

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Definitions:

Alpha

In finance, the excess return of an investment relative to the return of a benchmark index. In statistics, the probability of a Type I error in hypothesis testing.

Beta

In finance, a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

Earliest Due Date

A scheduling strategy that prioritizes tasks or orders based on their due dates, starting with the earliest.

Dispatching Rule

A guideline or policy used in scheduling to determine the order in which jobs or tasks are assigned to resources, aiming to optimize a certain objective.