Lambton's Department Store sells white bath towels. The demand for the last 6 years is given in the table below, along with the forecasts for the current year calculated using a threeyear moving average and exponential smoothing with o = 0.8. The Mean Forecast Error (M FE), Mean Absolute Deviation (MAD) and Mean Absolute Percentage Error (MAPE) are shown in the associated table. (i) Which forecast do you recommend for the coming year?Justify your recommendation (5 marks) Assignment 3 Case 6 Exponential Lambton's Department Store: Moving Average Smoothing Forecast a = 4,000 Bath towel Demand 3-year Year Demand MA 0.8 3,500 3,371 3,371.0 3,210 3,371.0 Demand 3.000 3 2,605 3,242.2 3,400 3062.0 2,732.4 2,500 UI A 3,788 3071.7 3,266.5 6 3,343 3264.3 3,683.7 2,000 3510.3 3,411.1 1 2 3 4 5 6 Year Std Dev (year) 386.0 Demand a= 0.8 -3-year MA Stdev(Year) 53.5 Current stock 172 Exponential Smoothing 3 year Moving Average o = 0.8 Forecast Absolute Absolute Forecast Absolute Absolute Year Demand Forecast Error Error % error Forecast Error Error % error 3371 3,371.0 0.0 0.0 0.0 NH 3210 3,371.0 -161.0 161.0 5.0 2605 3,242.2 -637.2 637.2 24.5 3400 3062.0 338.0 338.0 9.9 2,732.4 667.6 667.6 19.6 3788 3071.7 716.3 716.3 18.9 3,266.5 521.5 521.5 13.8 3343 3264.3 78.7 78.7 2.4 3,683.7 -340.7 340.7 10.2 MFE = 377.7 8.4 MAD = 377.7 388.0 MAPE = 10.4 12.2