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The monthly demand for lime bags at McCall's Garden Supply for the past 11 months is provided below: Month Bags (thousands) 1 8 2 12

The monthly demand for lime bags at McCall's Garden Supply for the past 11 months is provided below:

Month Bags (thousands)
1 8
2 12
3 10
4 7
5 7
6 8
7 11
8 8
9 13
10 7
11 9
12

  1. Use 2-month, 3-month, and 4-month moving averages to forecast demand in month 12.
  2. Forecast demand with a 3-month weighted moving average in which demand in the most recent month is given a weight of 3 and demands in the other two months are each given a weight of 1.
  3. Forecast demand for month 12 by using exponential smoothing with a smoothing constant of 0.7. Assume that the forecast for month 1 is 6,000 bags to begin the procedure.
  4. Which of the methods analyzed here would you use for month 12 and beyond? Answer by making forecasts for months 5-11 using each of the above methods and then calculating the mean absolute deviation.

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