Question: The distribution center (DC) manager for a large retail outlet is trying to estimate the demand for the upcoming week. The number of units the

  1. The distribution center (DC) manager for a large retail outlet is trying to estimate the demand for the upcoming week. The number of units the DC center has delivered over the past four weeks has been:

4 weeks ago: 2800

3 weeks ago: 3200

2 weeks ago: 3300

Last week: 4000

This week ?

Last week, the DC managers forecast for the number of deliveries was 3500. Please answer the following three questions, based on this information.

  1. What was the error in the DC managers forecast last week?
  2. What would be the DC managers forecast for this next week using exponential smoothing with alpha = 0.2?
  3. Suppose the DC manager decided to quit using simple exponential smoothing to forecast the demand and decided to use a 2-week moving average instead. What would be the service managers forecast for this next week?
  4. Find the MAD and MAPE for the Nave method, starting 4 weeks ago to last week.

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