Question: Problems 1 through 6 are based on the following data. Observations of the demand for a certain part stocked at a parts supply depot during

Problems 1 through 6 are based on the following data. Observations of the demand for a certain part stocked at a parts supply depot during the calendar year 2013 were a) Determine the one-step-ahead forecasts for the demand for January 2014 using 3-,6-, and 12-month moving averages. b) Using a four-month moving average, determine the one-step-ahead forecasts for July through December 2013. c) Using a four-month moving average, determine the two-step-ahead forecast for July through December 2013.(Hint: The two-step-ahead forecast for July is based on the observed demands in February through May.) d) Compute the MAD for the forecasts obtained in Problems 2 and 3. Which method gave better results? Based on forecasting theory, which method should have given better results? e) Compute the one-step-ahead three-month and six-month moving-average forecasts for July through December. What effect does increasing N from 3 to 6 have on the forecasts? f) Use the arithmetic average of the first six months of data as a baseline to initialize the exponential smoothing. Determine the one-step-ahead exponential smoothing forecasts for August through December, assuming =0.2. Compare the accuracy of the forecasts

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