Question: Ace Hardware handles spare parts for lawn mowers The following

Ace Hardware handles spare parts for lawn mowers. The following data were collected for one week in May when replacement lawn-mower blades were in high demand:
Day Demand
1 .......... 10
2 .......... 12
3 .......... 13
4 .......... 15
5 .......... 17
6 .......... 20
7 .......... 21
a. Simulate a forecast for the week, starting with F1 = 10, T0 = 2, α = .2, and β = .4. Use the trend model given in the chapter supplement.
b. Compute the MAD and tracking signal for the data. Use MAD0 = 0.
c. Are the MAD and tracking signal within tolerances?
d. Simulate a forecast using simple smoothing for the week, starting with F1 = 10 and α = .2. Plot the forecast and the data on a graph. Note how the forecast lags behind the data.

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  • CreatedSeptember 20, 2015
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