Question 2 (a) Apply the single exponential smoothing method to calculate the forecast for Month 13, given the following information on actual monthly demand. Assume that = 0.15 and the forecast for Month 1 is 825 units.

In addition, use the two-month moving-average method to find the forecasts from Months 3 to 13. Include the MSE, MAD, and MAPE for both forecasting methods in your calculations.

Which method gives the better forecast? Why do you say so?

(b) Use the aggregate planning strategies to determine whether airline companies, such as Singapore Airlines, should adopt a chase strategy for its call centres. [Your write up should not exceed 300 words.]

Month 1 2 3 4 5 6 7 8 9 10 11 12 Actual Demand 850 820 790 900 930 915 985 890 850 845 1000 960