Marie Bain Is the Production Manager at a Company That

question 39

Essay

Marie Bain is the production manager at a company that manufactures hot water heaters.Marie needs a demand forecast for the next few years to help decide whether to add new production capacity.The company's sales history (in thousands of units)is shown in the table below.Use exponential smoothing with trend adjustment to forecast demand for period 6.The initial forecast for period 1 was 11 units;the initial estimate of trend was 0.The smoothing constants are α = .3 and β = .3

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Definitions:

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An instance where there is more demand for a product or service than what is available in the market.

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Hurricane Katrina

One of the deadliest hurricanes to hit the United States, causing widespread destruction along the Gulf coast, particularly in New Orleans, in August 2005.