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

Your manager is trying to determine what

Your manager is trying to determine what

Your manager is trying to determine what

Your manager is trying to determine what forecasting method to use. Based on the following historical data, calculate the following forecasts and specify what procedure you would utilize. MONTH 1 2 3 4 5 6 ACTUAL DEMAND 63 63 67 68 75 72 71 73 73 78 85 85 7 8 9 10 11 12 a. Calculate the simple three-month moving average forecast for periods 412. (Round your answers to 3 decimal places.) Month Three-Month Moving Average 4 5 6 7 8 9 10 11 12 b. Calculate the weighted three-month moving average for periods 412 using weights of 0.60 (for the period t-1); 0.30 (for the period t-2), and 0.10 (for the period t-3). (Do not round intermediate calculations. Round your answers to 1 decimal place.) Month Three-Month Weighted Moving Average 4 5 6 7 8 9 10 11 12 c. Calculate the single exponential smoothing forecast for periods 212 using an initial forecast (F) of 67 and an a of 0.30. (Do not round intermediate calculations. Round your answers to 3 decimal places.) Month Single Exponential Smoothing Forecast 2 3 4 5 6 7 8 9 10 11 12 d. Calculate the exponential smoothing with trend component forecast for periods 212 using an initial trend forecast (T 1 of 1.90 an initial exponential smoothing forecast (Ft) of 66, an a of 0.30, and a o of 0.20. (Do not round intermediate calculations. Round your answers to 3 decimal places.) Month Exponential Smoothing with Trend 2 3 4 5 6 7 8 9 10 11 12 e-1. Calculate the mean absolute deviation (MAD) for the forecasts made by each technique in periods 412. (Do not round intermediate calculations. Round your answers to 3 decimal places.) Mean Absolute Deviation Three-month moving average Three-month weighted moving average Single exponential smoothing forecast Exponential smoothing with trend e-2. Which forecasting method do you prefer? O Three-month moving average Single exponential smoothing forecast Three-month weighted moving average O Exponential smoothing with trend forecast

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