Question: Month Historic Demand Forecasted demand Forecasting error mean absolute deviation January 200 February 240 March 270 April 310 236.67 73.33 73.33 May 370 273.33 96.67

Month

Historic Demand Forecasted demand

Forecasting error

mean absolute deviation

January

200

February

240

March

270

April

310

236.67

73.33

73.33

May

370

273.33

96.67

96..67

June

470

316.67

153.33

153.33

July

530

383.33

146.67

146.67

August

620

456.67

163.33

163.33

September

540

540

0

0

October

360

563.33

-203.33

203.33

November

320

506.67

-186.67

186.67

December

290

406.67

-116.97

116.67

Total of errors

126.67

1,140

a. Use the three-month simple moving average to forecast sales for the months April through December. b. Based on the results of this exercise for the first five months of demand for these products, evaluate how effective the calculated forecast is.

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