Question: Forecasting Method: (simple) Exponential Smoothing with a=0.3. First, fill in the forecasts for weeks 6 and 7, then calculate forecast error for week 4 to
Forecasting Method: (simple) Exponential Smoothing with a=0.3. First, fill in the forecasts for weeks 6 and 7, then calculate forecast error for week 4 to 7.
Week Demand(D) Average (A) Forecast (F) Error(E)
1 100 A1=(0.3)100+(1-0.3)110=107 F1=110
2 150 A2=(0.3)150+(1-0.3)107=119.90 F2=107
3 130 A3=(0.3)130+(1-0.3)119.90=122.93 F3=119.90
4 140 A4=(0.3)140+(1-0.3)122.93=128.05 F4=122.93
5 120 F5=128.05
6 110
7 100
Now compute the Mean Absolute Deviation (MAD) for weeks 4 thru 7 for each of the three forecasting methods. Then answer what is the most appropriate method according to MAD?
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