Table 14.13
The manager of a pizza shop must forecast weekly demand for special pizzas so that he can order pizza shells weekly.Recent demand has been:

-Use the information from Table 14.13.What is the exponentially smoothed forecast for week #7 if α = 0.9 is used,and the forecast for week #6 was 34?
A)36.0 pizzas
B)39.4 pizzas
C)42.4 pizzas
D)45.6 pizzas

Question

Table 14.13
The manager of a pizza shop must forecast weekly demand for special pizzas so that he can order pizza shells weekly.Recent demand has been:
 
-Use the information from Table 14.13.What is the exponentially smoothed forecast for week #7 if α = 0.9 is used,and the forecast for week #6 was 34?
A)36.0 pizzas 
B)39.4 pizzas 
C)42.4 pizzas 
D)45.6 pizzas

Quizplus · Accepted Answer

Using the formula for exponential smoothing with α=0.9:
Forecast for week #7 = α(actual demand for week #7) + (1-α)(forecast for week #6)
=0.9(38)+0.1(34)
=3.4+3.4
=39.4 pizzas. Therefore, the answer is B) 39.4 pizzas.

Table 14.13 The Manager of a Pizza Shop Must Forecast Weekly Demand