Monitor the adjusted exponential smoothing forecast in Problem 12.13 for bias using a tracking signal and a

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Monitor the adjusted exponential smoothing forecast in Problem 12.13 for bias using a tracking signal and a control chart with ±3 MAD. 


Data in Problem 12.13

The Willow River Mining Company mines and ships coal. It has experienced the following demand for coal during the past eight years:

Develop an adjusted exponential smoothing model (α = .30, β = .20) and a linear trend line model, and compare the forecast accuracy of the two using MAD. Indicate which forecast seems to be most accurate.

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Operations And Supply Chain Management

ISBN: 9781119577652

10th Edition

Authors: Roberta S. Russell, Bernard W. Taylor

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