Question: A planner is using a simple moving average forecast to estimate demand. The simple moving average forecast uses the previous 5 time periods as the

A planner is using a simple moving average forecast to estimate demand. The simple moving average forecast uses the previous 5 time periods as the forecast. The planner notices that the demand swings happen much faster than the forecast can react to, and would like to make the forecast more reactive. How can this be done?

Decrease the number of predictive periods

Increase the number of predictive periods

None of these - a moving average cannot be tuned

Use a different constant

why?

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!