Question
Table C2-4 shows total sales in pounds per month last year, which we can use to forecast demand. Using the data in Table C2-4, and
Table C2-4 shows total sales in pounds per month last year, which we can use to forecast demand.
Using the data in Table C2-4, and assuming we are just rolling over into the new year, use a 3-month simple moving average to forecast demand for January of this year.
Use a 3-month weighted moving average where the most recent month is given a weight of .5, the second most recent month is given a weight of .3, and the third most recent month is given a weight of .2, forecast demand for January of this year.
Using exponential smoothing with an alpha of 0.2, forecast demand for January and February of this year.
Find the deviation and MAD for each of the methods in #4a-#4c, and highlight the method that yields the most accurate forecast. Using an assumption that actual sales are going to be about 14,500 monthly, use the most accurate forecasting method to forecast demand for January through March of this year.
I am struggling primarily with the highlighted portion of this question
Table C2-4: Last Year's Sales | ||
Month | Sales | |
Jan | 13,100 | |
Feb | 13,820 | |
Mar | 14,600 | |
Apr | 13,500 | |
May | 13,670 | |
Jun | 15,890 | |
Jul | 16,270 | |
Aug | 16,250 | |
Sep | 15,800 | |
Oct | 14,800 | |
Nov | 13,950 | |
Dec | 13,800 |
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