practice_7_solution

practice_7_solution - Practice #7 Solutions Forecasting...

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Practice #7 Solutions Forecasting BUAD311 – Operations Management 1. The following table gives actual sales of units for six months and a starting forecast in January. Actual Forecast January 100 80 February 94 84 March 106 86 April 80 90 May 68 88 June 94 84 a. Calculate forecasts for the remaining five months using simple exponential smoothing with α=0.2. b. Calculate MAD for the forecasts February 84, March 86, April 90, May 88, June 84. MAD=15. 2. Not all items in your office are evenly distributed as far as demand is concerned, so you decide to forecast demand to help plan your stock. Past data for legal-sized yellow tablets for the month of August are: Demand Week 1 300 Week 2 400 Week 3 600 Week 4 700 a. Using a three-week moving average, what would you forecast the next week to be? b. Using exponential smoothing with α=0.2, if the exponential smoothing forecast for week 3 was estimated as the average of the first two weeks [(300+400)/2 = 350], what would you forecast week 5 to be?
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This note was uploaded on 04/01/2012 for the course BUAD 311 taught by Professor Vaitsos during the Fall '07 term at USC.

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practice_7_solution - Practice #7 Solutions Forecasting...

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