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Demand (Yt) for milk (in gallons) at a local grocery store is as follows during the past 8 months. Week Demand (Yt) 1 200 2
Demand (Yt) for milk (in gallons) at a local grocery store is as follows during the past 8 months.
Week | Demand (Yt) |
1 | 200 |
2 | 210 |
3 | 190 |
4 | 185 |
5 | 198 |
6 | 205 |
7 | 195 |
8 | 207 |
- What are the forecasted demands (Ft) using the 3 MA (3-period moving average) method and the exponential smoothing method (use =0.2)? Please show all the relevant calculations. (10 points)
- Calculate the MAE, MSE & MAPE values for the 3 MA (3-period moving average) method and the exponential smoothing method ( use =0.2). Please show all the relevant calculations. Which method do you recommend for future demand predictions based on the MAPE criterion and why? (10 points)
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