Question: AA Computer Services assembles customized personal computers from generic parts. They want to stock raw material to according to the forecasted demand. Last 12 month


AA Computer Services assembles customized personal computers from generic parts. They want to stock raw material to according to the forecasted demand. Last 12 month data has already been compiled and given below. February 3+3 Period Month Demand 1 January 37 2 40 3 March 41 4 April 37 5 May 45 6 June 50 7 July 43 8 August 47 9 September 56 10 October 52 11 November 55 12 December 54 a) Use exponential smoothing with smoothing parameter a = 0.3 to compute the demand forecast for January. b) Use exponential smoothing with smoothing parameter a = 0.5 to compute the demand forecast for January. c) Compute the mean squared error for each of the methods used, and interpret the result
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
