Question

14. MacRonald's Restaurant uses a monthly exponential smoothing forecast for demand of each of its products. MacRonald's has four product families: burgers, chicken, hoagies, and pizza. MacRonald's also asks the shift

managers to come up with a forecast for each product family. The exponential forecast for each product and the family forecast are given below. Family Burgers Chicken Hoagies Pizza Family Burgers Chicken Hoagies Pizza Product Regular Super Super-Duper Regular Cajun Italian French American Cheese Pepperoni Forecast 1,200 2,700 2,100 1,800 2,700 2,250 1,650 1,350 750 1,200 S/Unit 1.00 1.50 1.80 2.50 2.75 3.50 3.00 3.25 1.75 2.25 S Sales 10,000.00 15,000.00 20,000.00 5,000.00 a. Calculate a roll-up of the individual forecasts and compare it to the product family forecast. b. Roll up the individual product forecast to the top level and compare it to an overall corporate forecast of $65,000. Roll the forecast back down to families and individual forecast (dollars and units).

Fig: 1