The ABC Corporation has collected the following data on its sales in the past 4 weeks....

 

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The ABC Corporation has collected the following data on its sales in the past 4 weeks. The company only operates from Monday to Friday. 4 Weeks Ago 3 Weeks ago 2 weeks Ago Last week Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Demand 372 462 597 147 282 552 507 642 237 165 642 408 552 237 462 642 531 732 372 336 Question 1 - (3 marks) Using a simple five-day moving average, calculate the daily forecasts for the last 15 days. In addition, what is the forecast for the Monday of this week? Question 2 - (3 marks) Using a weighted average of 0.30 [last day], 0.25 [2 days ago] 0.20 [3 days ago], 0.15 [4 days ago], 0.10 [5 days ago], calculate the forecasts for the last 15 days. In addition, what is the forecast for the Monday of this week? Question 3 - (5 marks) Assume that the forecast for Monday of 4 weeks ago was 450 units. Using an Exponential Smoothing with a=0.25, calculate the daily forecasts for the last 15 days. If a is unknown, find the best value of the smoothing coefficient (a) that results in the lowest MSE. Question 4 - (4 marks) Using your forecast for the last 15 days in parts (b) and (c), calculate MAD, MSE and MAPE for each forecasting method. Between the forecasting methods in parts (b) and (c), which one would you choose? Why? The ABC Corporation has collected the following data on its sales in the past 4 weeks. The company only operates from Monday to Friday. 4 Weeks Ago 3 Weeks ago 2 weeks Ago Last week Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Demand 372 462 597 147 282 552 507 642 237 165 642 408 552 237 462 642 531 732 372 336 Question 1 - (3 marks) Using a simple five-day moving average, calculate the daily forecasts for the last 15 days. In addition, what is the forecast for the Monday of this week? Question 2 - (3 marks) Using a weighted average of 0.30 [last day], 0.25 [2 days ago] 0.20 [3 days ago], 0.15 [4 days ago], 0.10 [5 days ago], calculate the forecasts for the last 15 days. In addition, what is the forecast for the Monday of this week? Question 3 - (5 marks) Assume that the forecast for Monday of 4 weeks ago was 450 units. Using an Exponential Smoothing with a=0.25, calculate the daily forecasts for the last 15 days. If a is unknown, find the best value of the smoothing coefficient (a) that results in the lowest MSE. Question 4 - (4 marks) Using your forecast for the last 15 days in parts (b) and (c), calculate MAD, MSE and MAPE for each forecasting method. Between the forecasting methods in parts (b) and (c), which one would you choose? Why?

Answer rating: 100% (QA)

Question 1 Using a simple fiveday moving average the daily forecasts for the last 15 days are as follows 1 Week 2 Monday Forecast 372 462 597 147 282 5 372 2 Week 2 Tuesday Forecast 462 597 147 282 55... View the full answer