Question

Calculate a forecasting by means of the exponential smoothing using a constant of 0.5 and a forecast number of 322 units in the first month to determine the next months’ forecast sales. Month January Supposed sales in units320, February Supposed sales in units 321, March Supposed sales in units 387, April Supposed sales in units 414, May Supposed sales in units 413, June Supposed sales in units 416.

Inventory:

The company has determined the objective to sell the previous section provided data through the first 6 months and rises the sales a 2% monthly from July to December. It will make orders of 350 devices. They don’t want to have any safety stock. It has been calculated a production cost per unit and year of 10 dollars and of 12 dollars in case of stockout. Which is your expect inventory level in quantity of devices and also in value.

Answer 1

To calculate the forecast sales using exponential smoothing with a constant of 0.5, we can use the formula: Forecast = α * Actual Sales + (1 - α) * Previous Forecast. The expected inventory level is equal to the number of ordered devices, which in this case is 350 devices. The value of the inventory can be calculated by multiplying the expected inventory level by the production cost per unit.

Step-by-step explanation:

To calculate the forecast sales using exponential smoothing, we can use the formula: Forecast = α * Actual Sales + (1 - α) * Previous Forecast. In this case, the constant α is 0.5 and the forecast number for the first month is 322 units.

1. For the next month, February, we can calculate the forecast using: Forecast = 0.5 * 321 + (1 - 0.5) * 322 = 321.5 units.
2. For the following month, March, we can calculate the forecast using: Forecast = 0.5 * 387 + (1 - 0.5) * 321.5 = 354.25 units.
3. Similarly, for April: Forecast = 0.5 * 414 + (1 - 0.5) * 354.25 = 384.125 units.
4. For May: Forecast = 0.5 * 413 + (1 - 0.5) * 384.125 = 398.5625 units.
5. For June: Forecast = 0.5 * 416 + (1 - 0.5) * 398.5625 = 407.28125 units.

To calculate the expected inventory level, we need to consider the sales, orders, and production cost. Since no safety stock is desired, the expected inventory level would be equal to the number of ordered devices. In this case, 350 devices.

To calculate the value of the inventory, we can multiply the expected inventory level by the production cost per unit. In this case, it would be $10 per unit. Therefore, the value of the inventory would be $10 * 350 = $3,500.