Memphis      (30%            x     12,000)         =     3,600
       Cleveland     (35%            x     12,000)         =     4,200
       Overland Park     (10%            x     12,000)         =     1,200
 

       TOTAL                                                        12,000 pairs

 
4b.       The aggregate forecast for July is 12,720 pairs of socks (12,000 x 1.06).  July’s anticipated demand at each DC is shown below:
 
       DC location Historical %      x     Aggregate Demand  =       DC Demand
 
       Los Angeles (25%            x     12,720)         =     3,180 pairs
       Memphis      (30%            x     12,720)         =     3,816
       Cleveland     (35%            x     12,720)         =     4,452
       Overland Park     (10%            x     12,720)         =     1,272
 

       TOTAL                                                        12,720 pairs

 
5a.       To find the forecasted sales for the third quarter of 2016 under the moving averages technique, sum the actual sales from quarter 4 or 2015 and quarters 1 and 2 of 2016 and divide by 3:
 
       F_Qtr3,00 = 900 + 1600 + 900      = 1,133 Units
                     3
5b.  The forecasts of 2016 quarterly sales by exponential smoothing (a = 0.10) are:
 
       F_t: 2016, Qtr. 1 =     0.10 (900) + 0.90 (900)   = 910
              2016, Qtr. 2 =    0.10 (1600) + 0.90 (910) = 949
              2016, Qtr. 3 = 0.10 (900) + 0.90 (949)        = 934
              2016, Qtr. 4 = 0.10 (300) + 0.90 (934)        = 866