Question: FORECASTING please help explain! NEED HELP ASAP forecast actual demand error 2Q 2020 N/A 215 3Q 2020 N/A 210 4Q 2020 N/A 220 1Q 2021
FORECASTING please help explain! NEED HELP ASAP
| forecast | actual demand | error | |
| 2Q 2020 | N/A | 215 | |
| 3Q 2020 | N/A | 210 | |
| 4Q 2020 | N/A | 220 | |
| 1Q 2021 | N/A | 255 | |
| 2Q 2021 | N/A | 235 | |
| 3Q 2021 | 230 | 240 | 10 |
| 4Q 2021 | 237.5 | 270 | 32.5 |
| 1Q 2022 | 250 | 260 | 10 |
| 2Q 2022 | 251.25 |
- Using the 4-quarter moving average: What is the forecast for 3Q 2021, 4Q 2021, 1Q 2022, and 2Q 2022
- Compute the forecast for 3Q 2021, 4Q 2021, 1Q 2022, and 2Q 2022
using exponential smoothing (start with 3Q 2021) with a smoothing factor of .7.
| forecast | actual demand | error | |
| 2Q 2020 | 215 | ||
| 3Q 2020 | 210 | ||
| 4Q 2020 | 220 | ||
| 1Q 2021 | 255 | ||
| 2Q 2021 | 235 | ||
| 3Q 2021 | 235 | 240 | 5 |
| 4Q 2021 | (238.5) 239 | 270 | 31 |
| 1Q 2022 | (260.7) 261 | 260 | -1 |
| 2Q 2022 | (260.3) 261 |
- Which forecast method provides a more accurate forecast?
- Compute the forecast for 3Q 2021, 4Q 2021, 1Q 2022, and 2Q 2022
using a weighted moving average technique. The most recent period is weighted at .45, second most recent at .4, and 3rd most recent at .1 and 4th most recent at .05.
- Compare the results from 4 to the results from 1 and 2. Now which forecast provides the more accurate forecast?
- If the exponential smoothing is calculated using a smoothing factor of .6 will the forecast error be smaller or larger?
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