Here are the actual tabulated demands for an item for a nine-month period (January through September). Your supervisor wants to test two moving average forecasting methods to see which one was better over this period.MonthActual DemandJan120Feb140March160April180May170June190July150August160September170 a. Forecast April through September using a three-month moving average and calculate MAD for the forecasts.b. Forecast May through September using a four-month moving average and calculate MAD for the forecasts.

Moving average is a forecasting model which considering the average values of previous specific…

Answered: Here are the actual tabulated demands…

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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Here are the actual tabulated demands for an item for a nine-month period (January through September). Your supervisor wants to test two moving average forecasting methods to see which one was better over this period.

Month	Actual Demand
Jan	120
Feb	140
March	160
April	180
May	170
June	190
July	150
August	160
September	170

a. Forecast April through September using a three-month moving average and calculate MAD for the forecasts.

b. Forecast May through September using a four-month moving average and calculate MAD for the forecasts.

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