Demand Forecasting
Problem Assignment
(Total points: 10)
Historical demand for a product is as follows:
| Time Period | Month | Demand |
| 1 | April | 60 |
| 2 | May | 55 |
| 3 | June | 75 |
| 4 | July | 60 |
| 5 | August | 80 |
| 6 | September | 75 |
- Using single exponential smoothing with α=0.2 and a July forecast = 65, calculate the forecast for October. (3 points)
- Using linear regression analysis, calculate the trend line (using least squares equation) for the above data. (5 points)
- Calculate a forecast for October using the regression equation obtained in part (b). (2 points)
