August usage was forecasted to be 60 percent of capacity, Operation Management

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August usage was forecasted to be 60 percent of capacity

Problem

A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 60 percent of capacity; actual usage was 64 percent of capacity. A smoothing constant of 0.3 is used.

a. Prepare a forecast for September. (Round your final answer to 2 decimal places.)

Forecast for September

percent of capacity

b. Assuming actual September usage of 68 percent, prepare a forecast for October usage. (Round your answer to 2 decimal places.)

Forecast for October

percent of capacity

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Operation Management: August usage was forecasted to be 60 percent of capacity

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