Forecasting

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jenxoxo

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Sep 17, 2009
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A manufacturer has experienced the following monthly demand for one of their products.

Month Actual demand (in cases)

February 1500
March 2860
April 2950
May 3490
June 3000

a. Using a three month moving average, what would the forecast and MAD have been for July?

b. What would the three-month weighted moving average (using .4, .4, .2) and MAD have been for July? What would the MAD be using a regression?

c. Which forecasting method would you recommend? Why?
 
jenxoxo said:
A manufacturer has experienced the following monthly demand for one of their products.

Month Actual demand (in cases)

February 1500
March 2860
April 2950
May 3490
June 3000

a. Using a three month moving average, what would the forecast and MAD have been for July?

b. What would the three-month weighted moving average (using .4, .4, .2) and MAD have been for July? What would the MAD be using a regression?

c. Which forecasting method would you recommend? Why?
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Please show us your work, indicating exactly where you are stuck - so that we know where to begin to help you.
 
this is what I have so far.....

a. 2950+3490+3000/3 = 3146.67

b. (.4)(2950)+(.4)(3490)+(.2)(3000) = 1180+1396+600=3176
 
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