Question: please I need help with number 2 only thanks You have just been promoted and are now responsible for having inventory available for a manufacturing
You have just been promoted and are now responsible for having inventory available for a manufacturing facility. You need to forecast the demand for the inventory for next week. You do not have a solid demand number, so you decide to create a forecast to start your planning. You have the following historic demands for the past ten weeks. From this data, create a forecast for the Week of August 17. You are to use two different forecasting techniques: [a] a 3-week moving average, and [b] a level-only exponential smoothing. Show all calculations for the following tasks. 1. Use a 3-week moving average to create a forecast for the Week of August 17. 2. Use a simple level-only exponential smoothing model to create a forecast for the Week of August 17. To start the process, you need an old forecast, but you do not have one. So, we have to get creative. Use the average of the five oldest weeks of data for your first forecast (Week of June 9). Use an alpha of 0.2 for your calculations. 3. For each method, create a forecast error using the most recent six weeks of data. 4. For each forecast, create a range (statistical confidence band) for a 90% confidence band. 5. Which forecast do you recommend? Explain why
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