Analyst at Ayamas Food Corporation Sdn. Bhd. company about forecasting monthly demand for inventory from warehouse. The analyst suggest that Ayamas consider using exponential smoothing with smoothing constants 0.2 and 0.3. Ayamas decides to compare the accuracy of the smoothing constants for the most recent second quarter of the year. Below is the data for the most recent quarter. Month Sales (Thousands of RM) December 90 January 100 February 98 March 120 April 110 May 1 15 June 100 a. Calculate the exponential smoothing forecast for periods January to June. Use a = 0.2 and = 0.3 (14 Marks) b. Calculate the mean absolute deviation (MAD) for the forecast. Based on MAD, which forecasting method is the best. (4 Marks) c) Forecast July use the smallest mean absolute deviation. (2 Marks)
Analyst at Ayamas Food Corporation Sdn. Bhd. company about
|
Month |
Sales (Thousands of RM) |
|
December |
90 |
|
January |
100 |
|
February |
98 |
|
March |
120 |
|
April |
110 |
|
May |
1 15 |
|
June |
100 |
a. Calculate the exponential smoothing forecast for periods January to June. Use a = 0.2 and = 0.3 (14 Marks)
b. Calculate the mean absolute deviation (MAD) for the forecast. Based on MAD, which forecasting method is the best. (4 Marks)
c) Forecast July use the smallest mean absolute deviation. (2 Marks)
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