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Eagle Stores is a retailer of office supplies. The monthly retail demand for a product is provided below from January 2021 to October 2022. DEMAND
Eagle Stores is a retailer of office supplies. The monthly retail demand for a product is provided below from January 2021 to October 2022. DEMAND DATA Year Month 2021 2022 January 616 758 February 832 974 March 898 940 April 964 1126 May 880 1032 June 1016 988 uly 912 1004 August 828 870 September 894 1056 October 850 1020 November 1010 December 969 a. Use the naive method to forecast the demand for November and December 2022. b. Use the moving average method with 4 periods to forecast the demand for November and December 2022. c. Use the exponential smoothing method with smoothing constant 0.7 to forecast the demand for November and December 2022. Initialize the forecasting method using the actual demand in January 2021. d. Fit a trend line to the demand data from January 2021 to December 2021. What is the trend line equation? e. What is the forecasted demand for November and December 2022 if you use this trend line equation? f. How reliable is this forecast from a statistical perspective? g. Compute the MAD of the trend line method used in part (d). Use the forecasts from January 2022 to October 2022 to compute the MAD of the method. h. What is the interpretation of MAD? i. Explain clearly why it is important to compute and track forecast accuracy
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