Your company produces a favorite summertime food product, and you have been placed in charge of forecasting

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Your company produces a favorite summertime food product, and you have been placed in charge of forecasting shipments of this product. The historical data below represent your company’s past experience with the product.

Date

Shipments


Date

Shipments

Apr-2014

13,838


Jun-2015

21,056

May-2014

15,137


Jul-2015

13,509

Jun-2014

23,713


Aug-2015

9,729

Jul-2014

17,141


Sep-2015

13,454

Aug-2014

7,107


Oct-2015

13,426

Sep-2014

9,225


Nov-2015

17,792

Oct-2014

10,950


Dec-2015

19,026

Nov-2014

14,752


Jan-2016

9,432

Dec-2014

18,871


Feb-2016

6,356

Jan-2015

11,329


Mar-2016

12,893

Feb-2015

6,555


Apr-2016

19,379

Mar-2015

9,335


May-2016

14,542

Apr-2015

10,845


Jun-2016

18,043

May-2015

15,185


Jul-2016

10,803

a. Since the data appear to have strong seasonality, estimate a Winters’ model using Forecast X. Request the mean absolute percentage error.

b. You also have access to a survey of the potential purchasers of your product. This information has been collected for some time, and it has proved to be quite accurate for predicting shipments in the past.

c. After checking for bias, combine the forecasts in parts (a) and (b), and determine if a combined model may forecast better than either single model based on its MAPE.

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