Answered step by step
Verified Expert Solution
Question
1 Approved Answer
24. The Jersey Dairy Products Company produces cheese, which it sells to supermarkets and food- processing companies. Because of concerns about cholesterol and fat in
24. The Jersey Dairy Products Company produces cheese, which it sells to supermarkets and food- processing companies. Because of concerns about cholesterol and fat in cheese, the company has seen demand for its products decline during the past decade. It is now considering introducing some alternative low-fat dairy products and wants to determine how much available plant capac- ity it will have next year. The company has developed an exponential smoothing forecast with a = 40 to forecast cheese demand. The actual demand and the forecasts from the model are as follows: Year Forecast 1 Demand (1,000 lb.) 16.8 14.1 15.3 2 16.8 3 15.7 15.5 4 12.7 5 14.4 11.9 12.3 6 13.4 7 11.5 12.9 8 10.8 12.4 Assess the accuracy of the forecast model by using MAD and cumulative error. If the exponential smoothing forecast model does not appear to be accurate, determine whether a linear trend model would provide a more accurate forecast
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started