SUPPLY CHAINS MANAGEMENT

Forecasting

1. Draw the flowchart of the forecasting process.

1. Calculate the forecast for months 2 to 5 using exponential smoothing with = 0.2 and 2 month moving average method. Then calculate the MAD for each forecasting method. Which method is better? Forecast demand for month 6 using the better method.

Month	Actual Demand	Forecast Demand
1	260
2	230
3	225
4	245
5	250
6