Assume an initial starting Ft of 400 units, a trend (Tt) of six units, an alpha

Question

Assume an initial starting Ft of 400 units, a trend (Tt) of six units, an alpha of 0.4, and a beta of 0.3. If actual demand turned out to be 390, what is the forecast for next period? Fewer than or equal to 400 Greater than 400 but fewer than or equal to 500 Greater than 500 but fewer than or equal to 600 (Inventory Management Under Uncertainty). You are the operations manager of a firm that uses the continuous inventory system. Suppose the firm operates 52 weeks a year 365 days, and has the following characteristics for its primary item: Demand = 25000 units year Ordering cost = $35 order Holding cost = $8 unit year

Explanation / Answer

we know formulea is Ftt=ft+tt

so

its actually option a

fewer than or equal to 400

400-0.3=399.7

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