Question: Your manager is trying to determine what forecasting method to use. Based upon the following historical data, calculate the following forecast and specify what procedure

Your manager is trying to determine what
Your manager is trying to determine what forecasting method to use. Based upon the following historical data, calculate the following forecast and specify what procedure you would utilize. ACTUAL DEMAND ACTUAL DEMAND MONTH MONTH 1 2 3 4 5 6 62 65 67 68 71 73 7 8 9 10 11 12 76 78 78 80 84 85 a. Calculate the simple three-month moving average forecast for periods 4-12. b. Calculate the weighted three-month moving average using weights of 0.50 (for the most recent observation), 0.30, and 0.20 (for the oldest observation) for periods 4-12. c. Calculate the single exponential smoothing forecast for periods 2-12 using an initial forecast of 61 (F1) and alpha of 0.30. d. Calculate MAD, MSD, and MAPE for the forecasts made by each technique in periods 4-12. Which forecasting method do you prefer

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!