Question
below table is the forecast for the monthly demands for Year 6 using moving average , simple exponential smoothing , Holts' model, and Winter's model
below table is the forecast for the monthly demands for Year 6 using moving average, simple exponential smoothing, Holts' model, and Winter's model.
Method | MAD | MSE | MAPE | TS | BIAS |
Moving Average (4 period) | 4339.34 | 33,101,562.50 | 87.04% | 0.79 | -32250 |
Simple Exponential Smoothing with = 0.11 | 4338.43 | 28,126,025.55 | 80.24% | 0.84 | -28342.71 |
Holt's Model = 0.1 and = 0.2 | 4084.74 | 24,194,135.58 | 77.52% | -2.47 | 10100.86 |
Winter's Model with = 0.1 and = 0.2 | 17668.79 | 1,207,933,249.00 | 373.83% | 40.51 | 715743.64 |
based on the table, which is the best forecasting method for the case? justify your answer.
(you may refer to Chapter 7 "demand forecasting in a supply chain"), Sunil Chopra and Peter Meindl, Supply Chain Management: Strategy, Planning, and Operation, Pearson, 2010)
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