12.2. The manager of the I-85 Carpet Outlet needs to be able to forecast accurately the demand for Soft Shag carpet (its biggest seller). If the manager does not order enough carpet from the carpet mill, customers will buy their carpets from one of the outlet's many competitors. The manager has collected the following demand data for the past eight months: Demand for Soft Shag Carpet (1000 yd) ALsE Month 1 10 4 8. 5 14 10 7 9. 8. 12 a. Compute a three-month moving average forecast for months 4 through 9. b. Compute a weighted three-month moving average forecast for months 4 through 9. Assign weights of .55, .33, and .12 to the months in sequence, starting with the most recent month. c. Compare the two forecasts using MAD. Which forecast appears to be more accurate? 6, 3.
12.2. The manager of the I-85 Carpet Outlet needs to be able to forecast accurately the demand for Soft Shag carpet (its biggest seller). If the manager does not order enough carpet from the carpet mill, customers will buy their carpets from one of the outlet's many competitors. The manager has collected the following demand data for the past eight months: Demand for Soft Shag Carpet (1000 yd) ALsE Month 1 10 4 8. 5 14 10 7 9. 8. 12 a. Compute a three-month moving average forecast for months 4 through 9. b. Compute a weighted three-month moving average forecast for months 4 through 9. Assign weights of .55, .33, and .12 to the months in sequence, starting with the most recent month. c. Compare the two forecasts using MAD. Which forecast appears to be more accurate? 6, 3.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:12.2. The manager of the I-85 Carpet Outlet needs to be able to
forecast accurately the demand for Soft Shag carpet (its biggest
seller). If the manager does not order enough carpet from the carpet
mill, customers will buy their carpets from one of the outlet's many
competitors. The manager has collected the following demand data
for the past eight months:
Demand for Soft Shag
Carpet (1000 yd)
Month
ALE
ni bno
1
10
6.
4.
8
14
6.
10
7
9.
8.
12
a. Compute a three-month moving average forecast for months 4
through 9.
b. Compute a weighted three-month moving average forecast for
months 4 through 9. Assign weights of .55, .33, and .12 to the
months in sequence, starting with the most recent month.
c. Compare the two forecasts using MAD. Which forecast
appears to be more accurate?
3.
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