MAGT 304 Case Study - NORTHCUTTBIKES (Spring2014)

Question 1:
a. To verify the exponential smoothing model withα equal to 0.3, we need to apply the formula. As it is shown on first 9 weeks in the excel sheet, when we apply the exponential smoothing formula with the number ofα equal to 0.3, we get the forecast. 
week actual demand exp sm. Forcast
1 30 30 30
2 40 30 30
3 31 33 33
4 36 32.4 32
5 46 33.48 33
6 26 37.236 37
7 22 33.8652 34
8 43 30.30564 30
9 30 34.113948 34

ques 2:
1. What is d bar? 

2. What is σd ? 

3. What is L bar? 

4. What is σL? 

5. What are H, S and D?