Question: Using the forecast sheet in Excel, the forecasts in weeks 53 to 56 are at 418 (see table). Why are the forecast sheet results (
Using the forecast sheet in Excel, the forecasts in weeks 53 to 56 are at 418 (see table). Why are the forecast sheet results (418) different from linear trendline (415 - see below)? What are the causes of the differences? Which method is more accurate - forecast sheet (exponential triple smoothing) or linear trendline? Which one is more recommend in terms of forecasting such demand?
Linear Trendline equation: y= -.0569x + 417.86, using this the weeks 53 to 56 forecasts are at 415.
| Week | Demand |
| 1 | 400 |
| 2 | 450 |
| 3 | 425 |
| 4 | 430 |
| 5 | 460 |
| 6 | 390 |
| 7 | 405 |
| 8 | 416 |
| 9 | 430 |
| 10 | 440 |
| 11 | 395 |
| 12 | 360 |
| 13 | 370 |
| 14 | 410 |
| 15 | 390 |
| 16 | 440 |
| 17 | 460 |
| 18 | 425 |
| 19 | 448 |
| 20 | 462 |
| 21 | 380 |
| 22 | 395 |
| 23 | 414 |
| 24 | 423 |
| 25 | 448 |
| 26 | 422 |
| 27 | 410 |
| 28 | 440 |
| 29 | 427 |
| 30 | 418 |
| 31 | 370 |
| 32 | 380 |
| 33 | 410 |
| 34 | 428 |
| 35 | 412 |
| 36 | 450 |
| 37 | 376 |
| 38 | 360 |
| 39 | 417 |
| 40 | 422 |
| 41 | 440 |
| 42 | 380 |
| 43 | 415 |
| 44 | 432 |
| 45 | 396 |
| 46 | 460 |
| 47 | 422 |
| 48 | 446 |
| 49 | 398 |
| 50 | 428 |
| 51 | 410 |
| 52 | 415 |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
