Question
Mary is a regional demand planner at The Home Depot. For the past 6 months she has been using three forecast methods to forecast sales
Mary is a regional demand planner at The Home Depot. For the past 6 months she has been using three forecast methods to forecast sales for the hand tools product category. The table below shows actual sales and forecasts made using the three methods. At this point Mary is trying to figure out which two forecasting methods she should continue to use moving forward. 1. Calculate the forecast accuracy for each method using both MAD and MSE. Show your calculations. 2. Which two forecasting methods should Mary continue to use moving forward. Justify your answer.
Forecasts Actual Sales Simple Trend Adjusted Month Moving (in Millions) exponential Exponential average Smoothing Smoothing January 30 35 33 28 February 40 30 38 42 March 50 45 56 49 April 60 40 55 58 May 40 50 48 41 June 30 40 35 32
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started