Excel Problem (to be used with the data in the Excel file):

Namata Appliances sells refrigerators. The model seen in the data file is relatively inexpensive. Weekly demand for this model is relatively stable though there is enough variation to challenge management at Namata. Sometimes demand is lower than forecast, so that inventory costs are high. Other times the forecasts are too low. When this happens, on-hand inventory is not sufficient to meet customer demand and Namata requires expedited shipments to keep customers happy. This nearly wipes out Namata's profit margin on the expedited units. Profits at Namata would almost certainly increase if demand could be forecast more accurately.

In the Excel file:

a) Create a 3-week moving average forecast for week 71. Label your answer in the file.

b) Calculate the 3-week moving average forecast for all possible weeks.

c) Calculate the MAD for all possible weeks. Formulas is provided below. Label your answer in the file.

d) Create a SINGLE graph of the actual demand and the 3-week moving average forecast.

e) Save and submit this file. We will be grading the work and answers in the Excel file.

Week Sales1 459 494 429 470 460 458 480 469 478 460 480 437 442 449 444 437 456 457 434 457 407 396 376 367 367 372 336 327 333 359 357 399 383 417 442 429 443 431 468 481 484 498 526 517 504 503 483 A90 468 486 493 506 499 479 491 484 450 500 488 483 490 468 486 499 506 199 479 491 484 450 500 488 A52 498 498 447 452 485 442 483 484 467 500