Question: The table below shows the actual demand and forecast (using simple moving average (SMA) and exponential smoothing) for an item for a 6-month period (April

The table below shows the actual demand and forecast (using simple moving average (SMA) and exponential smoothing) for an item for a 6-month period (April through September). Your supervisor wants to test these two forecasting methods to see which method was better over this period.

Month Demand SMA Exponential Smoothing
April 170 130 136
May 160 150 146.2
June 180 160 150.34
July 140 170 159.24
August 130 160 153.47
September 140 150 146.43

(a) What is the mean absolute deviation (MAD) of SMA?

(b) What is the mean absolute deviation (MAD) of exponential smoothing?

(c) Which forecasting method is more accurate?

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