Question

In: Operations Management

The following are the data regarding quarterly sales: Quarters Sales 1 500 2 350 3 250...

The following are the data regarding quarterly sales:

Quarters

Sales

1

500

2

350

3

250

4

400

5

450

6

350

7

200

8

300

9

350

10

200

11

150

12

400

  1. Find the forecast value of the sales for each quarter starting with Quarter 6, by using a 4-quarter moving average.

                  Evaluate this forecasting method using MAD.

                  Evaluate this forecasting method using MSE.

                  Evaluate this forecasting method using MAPE.

                  Evaluate this forecasting method using MPE.

  1. Use exponential smoothing with a smoothing constant of 0.2 and an initial value of 500 to forecast the sales for Quarter 1.

Solutions

Expert Solution

a)

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b)

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Below is the screenshot of the result -


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