Question: 1. Data collected on the weekly demand (sales) for a product are shown in the following table. Week Bags sold 1 30 2 20 3
1. Data collected on the weekly demand (sales) for a product are shown in the following table. Week Bags sold 1 30 2 20 3 30 4 40 a) Forecast sales in week 5 based on (1) a nave model (i.e. a 1-week moving average). ___10+10___________ (2) 2-week moving average. __30____________ (3) 2-week weighted moving average with weights of 3 (for most recent week) and 2. _______ b) Calculate the MAD for the nave model __________ c) Use exponential smoothing with a smoothing constant of 0.4 to forecast the sales for week 5. Assume that the forecast for week 1 is perfect.
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