Which forecasting method is used to compute the sales forecast given in TABLE 1? (2 points)

Last value method Averaging method 4-month moving average method None of the above

Month 1 12 - 2 13 12 3 15 13 4 19 15

TABLE 1

Actual Demand

Forecasted Demand

4

ii.

Which one of the following method is the most appropriate for forecasting the

demand for June in the following sales data given in TABLE 2?

(3 points)

a) Averaging method

b) Last value method

c) 4-month moving average method

d) Qualitative method

Month

January February March April May June

Sales

2 3 2 9 9

TABLE 2

iii. Which one of the following method is the most appropriate for forecasting the sales of a new product? (2 points)

a) Averaging method

b) Last value method

c) Qualitative method

d) Moving average method

iv. Which method is the most appropriate method to use for demand forecasting based on

the error measures given in the TABLE 3?

a) Averaging method

b) Last value method

c) Moving average method

d) Exponential smoothing method

(3 points)

5

Method

Averaging method Last value method Moving average method

TABLE 3

MAD MSE MAPE 39.61 1887.96 0.04

34.79 1882.51 0.05 40.14 1891.02 0.03

LAD 75.25

71.04 79.91

Exponential smoothing method

41.12

1990.94

0.09

80.81