A manufacturing company has monthly demand for its products as follows: Month Demand February 520 March 490
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Question:
A manufacturing company has monthly demand for its products as follows:
Month | Demand |
February | 520 |
March | 490 |
April | 550 |
May | 580 |
June | 600 |
July | 420 |
August | 510 |
September | 610 |
On your Excel spreadsheet, determine the following:
a) The naive forecasting approach (for all months possible).
b) The mean squared error for your forecast in part a.
c) A 3-month moving average forecast.
d) The mean absolute deviation for your forecast in part c.
e) A 2-month weighted moving average forecast with weights of .2 and .5 (using .5 for the most recent period).
f) The mean squared error for your forecast in part e.
g) Graph the actual demand, and all the forecasts previously determined (on the same graph!).
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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