In: Operations Management
The following time series shows the sales of a particular product over the past 12 months. 1) Use the Naïve forecast method to get the forecasts for Month 2-12. Calculate the MAE, MSE, and MAPE. ----Details are required as in the lecture. Month Sales 1 120 2 112 3 119 4 112 5 99 6 120 7 125 8 118 9 114 10 108 11 115 12 117 2 2) Use the 3-month moving average forecast method to get the forecasts for Month 4-12. Calculate the MAE, MSE, and MAPE. ---Details are required. Month Sales 1 120 2 112 3 119 4 112 5 99 6 120 7 125 8 118 9 114 10 108 11 115 12 117 3) Which approach do you think is better? Why?