Question: 1 . Based on the information shown below, develop forecasts for April to October using: ( a ) A 3 - period weighted moving average

1. Based on the information shown below, develop forecasts for April to October using:
(a) A 3-period weighted moving average model (w1=0.5, w2=0.3, and w3=0.2).
(b) An exponential smoothing model with \alpha =0.35. Assume the forecast for March was 950.
Month Actual Demand
Jan 1050
Feb 975
Mar 1000
Apr 870
May 970
Jun 1220
Jul 1170
Aug 1150
Sep 1235
Oct 1275
2. Based on the information shown below, calculate MAD, MSE and tracking signal.
Week Actual Demand Forecast
1750770
2690730
3820710
4850790
5870840
6780850
7915890
8950920
3. For the information given, rank the customers in terms of customer lifetime value.
Avg. Annual Sales Avg. Profit Margin Expected Lifetime
Customer 1: $3,45017%8 years
Customer 2: $2,00013%6 years
Customer 3: $1,40032%10 years
Use a discount rate of 6 percent and treat the average sales figures as annuities. Should any of these customers be fired?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!