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.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
