A chain of grocery stores had the following weekly demand (cases) for a particular brand of laundry soap.

a. Use the Moving Average Excel template to develop three- and four-period moving average forecasts, and compute MSE for each. Which provides the better forecast? What would be your forecast for week 11?

b. Use the Exponential Smoothing Excel template to develop an exponential-smoothing forecast using the alpha smoothing constant value determined by Equation 9.6.

Equation 9.6.

a = 2/[3 + 1] = 2/[3 + 1] = 0.5

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Week Demand 12 31 22 33 3 4 5 6 7 8 9 26 21 29 25 22 20 10 26