With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

No credit card required

Problems

1. Sales for a product for the past three months have been 200, 350, and 287. Use a three-month moving average to calculate a forecast for the fourth month. If the actual demand for month 4 turns out to be 300, calculate the forecast for month 5.

2. Lauren's Beauty Boutique has experienced the following weekly sales:

 Week Sales 1 432 2 396 3 415 4 458 5 460

Forecast sales for week 6 using the naïve method, a simple average, and a three-period moving average.

3. Hospitality Hotels forecasts monthly labor needs.

• (a) Given the following monthly labor figures, make a forecast for June using a three-period moving average and a fiveperiod moving average.  Month Actual Values January 32 February 41 March 38 April 39 May 43
• (b) What would be the forecast for June using the naïve method?
• (c) If the actual labor figure for June turns out to be 41, what would be the forecast for July using each of these models?
• (d) Compare the accuracy of these models using the mean absolute deviation (MAD).
• (e) Compare the accuracy of these models using the mean squared error (MSE).

4. The following data are monthly sales of jeans at a local department store. The buyer would like to forecast sales of jeans for the next month, July.

• (a) Forecast sales of jeans for March through June using the naïve method, a two-period moving average, and exponential smoothing with an α = 0.2. (Hint: Use naïve to start the exponential smoothing process.)
• (b) Compare the forecasts ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

No credit card required