As a Consultant You Have Been Asked to Generate a Unit

question 51

Multiple Choice

As a consultant you have been asked to generate a unit demand forecast for a product for year 2018 using exponential smoothing. The actual demand in year 2017 was 750. The forecast demand in year 2017 was 960. Using this data and a smoothing constant alpha of 0.3, which of the following is the resulting year 2018 forecast value?

• A) 766
• B) 813
• C) 897
• D) 1,023
• E) 1,120

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Definitions:

Finished Goods Inventory

The stock of completed products that are ready to be sold.