question archive Scandinavian Furniture Company (SFC) operates hip and ridiculously crowded furniture stores that target young and budget-minded customers
Subject:FinancePrice: Bought3
Scandinavian Furniture Company (SFC) operates hip and ridiculously crowded furniture stores that target young and budget-minded customers.
The SFC store in Michigan sells patio furniture only from the beginning of May till the end of July. SFC is currently forecasting demand for a popular patio set. Most customers purchase the patio set in May, in preparation for the summer, and the sales of the patio set decreases with each passing month. In the past two years, the demand for the patio set at this particular store has been as follows:
Year |
1 |
2 |
||||
Month |
May |
June |
July |
May |
June |
July |
Demand |
180 |
110 |
70 |
200 |
160 |
100 |
Suppose SFC is using Winter’s method to forecast the demand for the next
Year |
1 |
2 |
||||
Month |
May |
June |
July |
May |
June |
July |
Demand |
180 |
110 |
70 |
200 |
160 |
100 |
V |
120 |
153.33 |
year, with smoothing constants α = β = γ = 0.1. Determine the forecast for next year’s total demand.