Discuss the below:
Q: 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).
Show all work, where appropriate. If using Excel, please include all formulas in cells where calculations are made.