Make the appropriate initialization assumptions

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The manager of Pat’s Organic Farm must make the annual purchasing plans for rakes, gloves, and other gardening items. One of the items the company stocks is Lean-feed for chickens. The sales of this item are seasonal, with peaks in the spring, summer, and fall months. Quarterly demand (in cases) for the past two years is as follows:

Quarter Year 1 Year 2

1 40 60

2 350 440

3 290 320

4 210 280

Total 890 1100

If the expected sales for Lean-feed are 1,150 cases for year 3, use the adjusted exponential smoothing model to prepare a forecast for each quarter of the year. Make the appropriate initialization assumptions.

Reference no: EM132279668

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