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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 |
- Use 2-month, 3-month, and 4-month moving averages to forecast demand in month 12.
- 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.
- 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.
- 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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