Sales of vegetable dehydrators at Bud Baniss discount department store in Gander over the past year are

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Sales of vegetable dehydrators at Bud Banis€™s discount department store in Gander over the past year are shown below. Management prepared a forecast using a combination of exponential smoothing and its collective judgment for the four months March, April, May, and June of 2016:

2015-2016 Management's Forecast Month Unit Sales July August September 100 93 96 October 110 November 124 December 119 J


a) Compute MAD and MAPE for management€™s technique.
b) Do management€™s results outperform (i.e., have smaller MAD and MAPE than) a naive forecast?
c) Which forecast do you recommend, based on lower forecast error?

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Operations Management Sustainability and Supply Chain Management

ISBN: 978-0133764345

2nd Canadian edition

Authors: Jay Heizer, Barry Render, Paul Griffin

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