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Betsy's Blue Bonnet Bakery
a =
0.3
g =
0.5
b =
0.8
Actual
Trend
Slope
Seasonal
Forecast
Error
Quarter
t
Sales, Yt
Tt
bt
St
Ft
2003 W
1
36,500
1988 S
2
43,750
36,500.00
7,250.00
1.20
3
59,920
48,601.00
9,675.50
1.23
1988 F
4
87,440
67,025.55
14,050.03
1.30
2004 W
5
102,240
87,424.90
17,224.69
1.17
6
123,420
104,144.98
16,972.38
1.19
125,436.15
(2,016.15)
7
139,610
118,753.37
15,790.39
149,325.16
(9,715.16)
8
135,380
125,312.56
11,174.79
1.13
175,522.72
(40,142.72)
2005 W
9
129,470
128,753.89
7,308.06
1.04
159,616.61
(30,146.61)
10
137,570
129,989.43
4,271.80
1.08
161,612.88
(24,042.88)
11
156,630
133,566.44
3,924.41
1.18
159,379.23
(2,749.23)
12
150,980
136,498.26
3,428.11
1.11
154,702.82
(3,722.82)
2006 W
13
143,340
139,362.57
3,146.21
1.03
145,291.38
(1,951.38)
14
153,360
142,190.68
2,987.16
154,509.63
(1,149.63)
15
169,730
144,939.30
2,867.89
170,664.76
(934.76)
16
161,990
147,249.54
2,589.07
1.10
164,053.12
(2,063.12)
2007 W
17
154,760
149,940.86
2,640.19
154,408.75
351.25
18
164,780
152,592.38
2,645.85
164,739.26
40.74
19
186,730
156,466.79
3,260.13
181,930.65
4,799.35
20
177,880
160,230.59
3,511.97
176,029.75
1,850.25
2008 W
21
170,360
164,152.06
3,716.72
168,951.59
1,408.41
22
178,830
167,190.82
3,377.74
1.07
181,270.26
(2,440.26)
23
195,550
168,732.72
2,459.82
1.16
202,826.81
(7,276.81)
24
187,220
170,501.72
2,114.41
189,772.64
(2,552.64)
2009 W
25
163,230
168,070.53
(158.39)
0.98
178,936.82
(15,706.82)
26
162,890
163,137.87
(2,545.53)
1.01
179,944.64
(17,054.64)
27
174,540
157,361.67
(4,160.86)
1.12
187,085.45
(12,545.45)
28
163,130
151,724.53
(4,899.00)
168,543.79
(5,413.79)
2010 W
29
144,517.86
30
143,788.09
31
153,515.48
32
142,720.95
MSE =
175,943,211
1) Refer to the inventory output for Betsy's Blue Bonnet Bakery. Here, Betsy is trying to determine the optimal order policy for birthday kits. What is the safety stock?
2) What is Betsy's service level if she uses this policy?
3) If Betsy changes to a lost sales model, how would the policy be affected?
4) Refer to the forecasting output for Betsy's. This model is appropriate for the type of data.
a. True
b. False
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