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
- 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.
- What was the error in the DC managers forecast last week?
- What would be the DC managers forecast for this next week using exponential smoothing with alpha = 0.2?
- 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?
- Find the MAD and MAPE for the Nave method, starting 4 weeks ago to last week.
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