The Beaver Creek Pottery Company sells bowls and mugs, hand-made by Native American artisans, at a craft store and through a Web site. Making these items requires a special type of clay and a large amount of individual person-hours, so for planning purposes, the company would like to forecast future demand, specifically through its Web site, which has increasingly become the primary source of sales. Following is the company’s Web site demand (in items sold) for the past 36 months Month Sales Month Sales Month Sales 1 345 13 415 25 344 2 411 13 395 26 286 3 266 15 298 27 455 4 347 16 377 28 634 5 506 17 418 29 502 6 278 18 522 30 388 7 411 19 421 31 427 8 510 20 384 32 561 9 198 21 455 33 447 10 387 22 506 34 395 11 344 23 478 35 414 12 412 24 613 36 522 Develop a linear trend forecast model, an exponentially smoothed model ( α = 0.20 ), and a 5-month moving average forecast model and indicate which one you think should be used to forecast Web site demand. I hope you guys can elaborate it so that I can study them and understand them well
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
The Beaver Creek Pottery Company sells bowls and mugs, hand-made by Native American artisans, at a craft store and through a Web site. Making these items requires a special type of clay and a large amount of individual person-hours, so for planning purposes, the company would like to
| Month | Sales | Month | Sales | Month | Sales |
| 1 | 345 | 13 | 415 | 25 | 344 |
| 2 | 411 | 13 | 395 | 26 | 286 |
| 3 | 266 | 15 | 298 | 27 | 455 |
| 4 | 347 | 16 | 377 | 28 | 634 |
| 5 | 506 | 17 | 418 | 29 | 502 |
| 6 | 278 | 18 | 522 | 30 | 388 |
| 7 | 411 | 19 | 421 | 31 | 427 |
| 8 | 510 | 20 | 384 | 32 | 561 |
| 9 | 198 | 21 | 455 | 33 | 447 |
| 10 | 387 | 22 | 506 | 34 | 395 |
| 11 | 344 | 23 | 478 | 35 | 414 |
| 12 | 412 | 24 | 613 | 36 | 522 |
Develop a linear trend forecast model, an exponentially smoothed model ( α = 0.20 ), and a 5-month moving average forecast model and indicate which one you think should be used to forecast Web site demand. I hope you guys can elaborate it so that I can study them and understand them well
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