Exponential Smoothing

Canon has experienced irregular and growing demand for your new Canon 90D camera model. The previous projection method is based on a Simple Moving Average of four (4) periods of the year

Current.

1.Calculate the demand projection for the month of November using

Exponential Smoothing as a method. Use an alpha or coefficient of .6.

Month Demand

January 200

February 250

March 300

April 325

May 375

June 400

July 500

August 450

September 500

October 650

B. Mean Absolute Deviation

The actual demand for the Canon 90D camera model, for the months of November and December was 675 and 650 cameras. Calculate the forecast error using MAD

C. Bias

Canon wants to assess whether its projection for the months of November and December is underestimated or overestimated. Calculate the forecast error and the direction of the forecast