MGM $351$ Operation Management

In class Practice Problem

Weekly sales of ten$-$grain bread at the local organic food market are in the table below. Based on this data, forecast week $9$ using $($a$)$ a four$-$week moving average, $($b$)$ a three$-$week weighted average with the weight $0\mathrm{.}5,0\mathrm{.}3$ and $0\mathrm{.}2$ for the previous week sale, two week ago sale, and three week ago sale, respectively, $($c$)$ exponential smoothing with smoothing constant $=0\mathrm{.}5$ and $F_1=410.$ Also compute the MAD to determine which model can result in the best forecasting.

$\backslash$table$[[$Week$,$Sales$],[1,416],[2,389],[3,419],[4,382],[5,410],[6,431],[7,405],[8,421]]$