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 forecasting method to use. Based on the following historical data, calculate the following forecasts and specify what procedure you would utilize.
| MONTH | ACTUAL DEMAND | ||
| 1 | 59 | ||
| 2 | 65 | ||
| 3 | 65 | ||
| 4 | 67 | ||
| 5 | 71 | ||
| 6 | 70 | ||
| 7 | 77 | ||
| 8 | 77 | ||
| 9 | 77 | ||
| 10 | 75 | ||
| 11 | 83 | ||
| 12 | 81 | ||
need only d and e1 to be fixed
d. Calculate the exponential smoothing with trend component forecast for periods 212 using an initial trend forecast (T1) of 1.60, an initial exponential smoothing forecast (F1) of 62, an of 0.20, and a of 0.30. (Do not round intermediate calculations. Round your answers to 3 decimal places.)
| 2 | 61.400selected answer incorrect |
| 3 | 63.256selected answer incorrect |
| 4 | 64.845selected answer incorrect |
| 5 | 66.526selected answer incorrect |
| 6 | 68.699selected answer incorrect |
| 7 | 70.470selected answer incorrect |
| 8 | 73.095selected answer incorrect |
| 9 | 75.504selected answer incorrect |
| 10 | 77.521selected answer incorrect |
| 11 | 78.703selected answer incorrect |
| 12 | 81.027 |
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 | 4.148selected answer correct |
| Three-month weighted moving average | 3.578selected answer correct |
| Single exponential smoothing forecast | 5.204selected answer incorrect |
| Exponential smoothing with trend | 1.704 incorrect |
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