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Kims department at a local department store has tracked the sales of a product over the last nine weeks. The demand can be seen in
- Kims department at a local department store has tracked the sales of a product over the last nine weeks. The demand can be seen in the table below.
Period | Demand |
1 | 24 |
2 | 23 |
3 | 26 |
4 | 36 |
5 | 26 |
6 | 30 |
7 | 32 |
8 | 26 |
9 | 25 |
- Forecast demand using exponential smoothing with an alpha of 0.3, and an initial forecast of 30.0 for period 2 to 9.
- Use a 5-period moving average, forecast the demand up to period 9
Using MAD, determine which forecasting technique is better.
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