Operations Management
John478
Question
Sales for the past 8 months at Dalworth Company are given here.
Month | Sales ($ Millions) |
Jan | 20 |
Feb | 24 |
Mar | 27 |
Apr | 31 |
May | 37 |
Jun | 47 |
July | 53 |
August | 62 |
- Use a 3-month weighted moving average to forecast the sales for June, July, and August. Use weights of (10), (5), and (1), giving more weight to more recent data.
- Use exponential smoothing with forecast the sales for June, July, and August. Assume that the forecast for May was $39 million.
- Calculate the Mean Absolute Percent Error (MAPE) for each of the two forecasting methods: 3-month weighted moving average and exponential smoothing, for each month (June, July, and August). Based on these calculations, identify which method provided a more accurate forecast for each month. Be sure to show all error measurements.
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