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The following represents the demand for Sellers Ltd for a five months period Month Actual Demand Forecast 1 0 0 2 0 0 3 0

The following represents the demand for Sellers Ltd for a five months period Month Actual Demand Forecast 100200300400500 Calculate : the forecast for period 2 to 5 using exponential smoothing method. Use a smoothing constant of 0.4 i.e.\alpha =0.4. Assume the forecast for month 1 is 100. the MAD, MSE and the MAPE using the forecast data determine the tracking signal . Is this a good forecast if the control limit is \pm 3?

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