Question: please show references for formulas please i am stuck on figuring this problem out Problem 1 (Comparison of 4 Methods) (10 points) Your forecasting team


Problem 1 (Comparison of 4 Methods) (10 points) Your forecasting team is trying to determine what forecasting method to use for forecasting the future demand. The actual demand data for the past 12 weeks are recorded and provided in the following table. Please show your work to answer questions of a - f. WEEK ACTUAL DEMAND 72 2 75 3 77 78 5 81 83 6 7 86 8 88 9 88 10 90 11 94 12 95 a. Calculate the three-week simple moving average forecast for periods 4-12. (1 point) b. Calculate the three-week weighted moving nerage using weights of 0.5, 0.3, and 0.2 for periods 4-12. (2 points) c. Calculate the simple exponential smoothing forecast for periods 2-12 using an initial forecast (F) of 61 and an a of 0.30. (2 points) d Calculate the exponential smoothing with trend forecast for periods 2-12 using an initial trend forecast (71) of 18, an initial exponential smoothing forecast (F) of 60. an a of 0.30, and 8 of 0.30. (2 points) e Calculate the mean absolute deviation (MAD) for the forecasts made by cach method in periods 4-12. Which forecasting method do you recommend based on the 94 12 95 Calculate the three-week simple moving average forecast for periods 4-12. (1 point) b. Calculate the three-week weighted moving average using weights of 0.5, 0.3, and 0.2 for periods 4-12. (2 points) c. Calculate the simple exponential smoothing forecast for periods 2-12 using an initial forecast (F) of 61 and an a of 0.30 (2 points) d. Calculate the exponential smoothing with trend forecast for penods 2-12 using an initial trend forecast (T) of 18, an initial exponential smoothing forecast (F) of 60, an a of 0.30, and 8 of 0.30. (2 points) e. Calculate the mean absolute deviation (MLAD) for the forecasts made by each method in periods 4-12. Which forecasting method do you recommend based on the MAD values? (2 poms) [. Use the recommended forecasting method to predict the demand for next week, i.e.. Week 13. (1 point) 1 Week week Weighted Moving Average Absolute Absolute Sexponenti deviation Smoothie 1 At pornholm with The AIT, Actual Simple Moving Absolute Demand Aerog deviation 22 75 73 1 2 3 4 2 4 IT 5 0 7 8 7 3 9 10 11 T2 116 10 90 14 15 16 MAD
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
