In: Operations Management
Historical demand for a product is as follows:
April 60
May 60
June 55
July 75
August 80
September 75
(a.) Using a simple four-month moving average, calculate a forecast for October.
(b.) Using single exponential smoothing with alpha=0.3 and a September forecast =70, calculate a forecast for October.
(c.) Using simple linear regression, calculate the trend line (Yt) for the historical data. The X-axis scale is: April = 1, May = 2, and so forth. Y-axis is Demand from above.
Yt = a + bx =
(d.) Using the linear regression model above, what is a forecast for October?