Question: a . Computation of the exponentially smoothed forecast: Given data: Week 1 : 3 5 calls Week 2 : 2 5 calls Week 3 :
a Computation of the exponentially smoothed forecast:
Given data:
Week : calls
Week : calls
Week : calls
Week : calls
Week : calls
Week : calls
Alpha approximation:
Forecast for week : calls
The formula for the exponentially smoothed forecast is:
Ft alphaAt alphaFt
where Ft is the exponentially smoothed forecast for the next period, At is the actual demand for the current period, and Ft is the exponentially smoothed forecast for the current period.
Substituting the given values, we get:
F
F
F
Therefore, the exponentially smoothed forecast for week is calls.
b Reforecast each period using alpha :
Given data:
Week : calls
Week : calls
Week : calls
Week : calls
Week : calls
Week : calls
Alpha approximation:
Forecast for week : calls
The formula for the exponentially smoothed forecast with alpha is:
FtAtFt
Substituting the given values, we get:
F
F
F
Therefore, the exponentially smoothed forecast for week using alpha is calls.
c MAD Mean Absolute Deviation is a measure of the accuracy of the forecast. It calculates the average absolute deviation of the forecast from the actual demand. The lower the MAD, the more accurate the forecast.
To calculate the MAD for the exponentially smoothed forecast with alpha we need to first calculate the absolute deviation for each period:
Week : Absolute deviation
Week : Absolute deviation
Week : Absolute deviation
Week : Absolute deviation
Week : Absolute deviation
Week : Absolute deviation
Then, we calculate the MAD:
MAD
MAD
MAD
MAD
Therefore, the MAD for the exponentially smoothed forecast with alpha is
To calculate the MAD for the exponentially smoothed forecast with alpha we need to first calculate the absolute deviation for each period:
Week : Absolute deviation
Week : Absolute deviation
Week : Absolute deviation
Week : Absolute deviation
Week : Absolute deviation
Week : Absolute deviation
Then, we calculate the MAD:
MAD
MAD
MAD
MAD
Therefore, the MAD for the exponentially smoothed forecast with alpha is
d The MAD provides a measure of the accuracy of the forecast, with a lower MAD indicating a more accurate forecast. In this case, both the MAD for the exponentially smoothed forecast with alpha and the MAD for the exponentially smoothed forecast with alpha are Therefore, the smoothing constant of provides a more accurate forecast for week compared to the smoothing constant of
However, the actual demand in week was calls, and the closest smoothing constant to the actual demand was providing a forecast of calls. Therefore, the smoothing constant of provides the closest forecast to the actual demand in week
Final answer: a The exponentially smoothed forecast for each week is computed using the given values and the formula:
Ft alphaAt alphaFt
where Ft is the exponentially smoothed forecast for the next period, At is the actual demand for the current period, and Ft is the exponentially smoothed forecast for the current period.
Substituting the given values, we get:
F
F
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