Monitor the adjusted exponential smoothing forecast in Problem 12.13 for bias using a tracking signal and a
Question:
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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Related Book For
Operations And Supply Chain Management
ISBN: 9781119577652
10th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
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