Determine the mean absolute deviation, Operation Management

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Determine the mean absolute deviation

Assignment:

Samsung is trying to forecast demand for first quarter 2017 for one of their memory chips. Using exponential smoothing, Alpha = 0.2, a forecast for second quarter 2016 of 165,000 chips, and the actual production below. Calculate the forecast for first quarter 2017 and determine the mean absolute deviation.

Quarter Memory chips Produced

Second Quater 2016         175000
Third Quater 2016            142000
Fourth Quater 2016          165000
First Quater 2017         TBD

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Operation Management: Determine the mean absolute deviation

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