Question in need for help ! OM MBA Ch4 ( 12 Edition Heizer-Jay )

Full details if possible , With best regard)

Rules

Nave Approach

Demand in the next period is equal to demand in the most recent period

Moving Average Method

Weighted Moving Average Method

Exponential Smoothing

Mean Absolute Deviation (MAD)

Exponential Smoothing with Trend Adjustment

Ft = (At - 1) + (1 - )(Ft - 1 + Tt - 1)

Tt = (Ft - Ft - 1) + (1 - )Tt 1

1) Weekly sales of copy paper at Cubicle Suppliers are provided in the table below. Compute a three-period moving average and a four-period moving average for weeks 5, 6, and 7. Compute the MAD for both forecasting methods. Which model is more accurate? Forecast week 8 with the more accurate method. (7 points)

Week Sales (cases)

1 17

2 21

3 27

4 31

5 19

6 17

7 21

2) Use exponential smoothing with trend adjustment to forecast deliveries for period 5. Let alpha = 0.4, beta = 0.2, and let the initial trend value be 4 and the initial forecast be 200. (7 points)

Period	Actual Demand
1	200
2	212
3	214
4	222
5	236