Sales of the Flying Flintmobile has been increasing over the past five years. The operations manager has estimated sales in 2017 to be 410 Flying Flintmobiles. Using exponential smoothing with a...

Sales of the Flying Flintmobile has been increasing over the past five years. The operations

manager has estimated sales in 2017 to be 410 Flying Flintmobiles. Using exponential smoothing

with a weight of α = 0.30, forecasts have been developed for 2017 through 2022.

Year          Sales     Forecast

2016        450          N/A

2017       495           410 (given)

2018       518           (0.3 x 495)+(0.7 x 410) = 435.5

2019       563           (0.3x518)+(0.7x435.5) = 460.25

2020       584           (0.3x563)+(0.7x460.25) = 491.075

2021                         (0.3x584)+(0.7x491.075) = 518.9525

1. Caution the manager on the limitations associated with your forecast.