Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Consider the following sales data for Bell, Inc. Month Sales ($ Millions) Jan. 10 Feb. 12 March 14 April 16 May 18 June 23 July 26 Aug. 31 Sept. 27 Oct. 18 Nov. 16 Dec. 14 a. Use a three-month weighted moving average to forecast the sales for the months April through December. Use weights of (3/6), (2/6), and (1/6), giving more weight to more recent data. b. Use exponential smoothing with α = 0.30 to forecast the sales for the months April through December. The forecast for January was $12 million. c. Compare the performance of the two methods by using the bias and MAD as the performance criteria. Which performance method is the most reasonable? Why?

Consider the following sales data for Bell, Inc. Month Sales ($ Millions) Jan. 10 Feb. 12 March 14 April 16 May 18 June 23 July 26 Aug. 31 Sept. 27 Oct. 18 Nov. 16 Dec. 14 a. Use a three-month weighted moving average to forecast the sales for the months April through December. Use weights of (3/6), (2/6), and (1/6), giving more weight to more recent data. b. Use exponential smoothing with α = 0.30 to forecast the sales for the months April through December. The forecast for January was $12 million. c. Compare the performance of the two methods by using the bias and MAD as the performance criteria. Which performance method is the most reasonable? Why?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.6: Moving Averages Models
Problem 22P: The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six...
See similar textbooks
icon
Related questions
Question

Consider the following sales data for Bell, Inc.

Month Sales ($ Millions)

Jan. 10

Feb. 12

March 14

April 16

May 18

June 23

July 26

Aug. 31

Sept. 27

Oct. 18

Nov. 16

Dec. 14

a. Use a three-month weighted moving average to forecast the sales for the months April through December. Use weights of (3/6), (2/6), and (1/6), giving more weight to more recent data.

b. Use exponential smoothing with α = 0.30 to forecast the sales for the months April through December. The forecast for January was $12 million.

c. Compare the performance of the two methods by using the bias and MAD as the performance criteria. Which performance method is the most reasonable? Why?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Forecasting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Marketing
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
Contemporary Marketing
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS