Recent past demand for product ZXT is given in the following table: Month Actual Demand
Question: Recent past demand for product ZXT is given in the following table:
Month | Actual Demand |
February | 20 |
March | 22 |
April | 33 |
May | 35 |
June | 31 |
July | 48 |
August | 41 |
a) Determine the forecasted demand for May, June, July and August based on a three month moving average.
b) Determine the forecasted demand for May, June, July and August based on a three month weighted moving average with weights w1=.1, w2=.4, and w3=.5, where w3 is the weight for the most recent month of the three months.
c) Determine the forecasted demand for March, April, May, June, July and August based on a simple exponential smoothing with alpha (α) = 0.4.
d) Determine the forecasted demand for March, April, May, June, July and August based on an adjusted exponential smoothing with alpha (α) = .2 and beta (β) = .3.
e) Compute MAD (Mean Absolute Deviation) and MSE (Mean Squared Error) for the results from a), b), c) and d).
Deliverable: Word Document
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