Answered: Marie Bain is the production manager at…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

Marie Bain is the production manager at a company that manufactures hot water heaters. Marie needs a demand forecast for the next few years to help decide whether to add new production capacity. The company's sales history (in thousands of units) is shown in the table below:

Period	Demand
1	12
2	15
3	16
4	16
5	18
6	20

a. Use 2 year moving average to forecast the demand for periods 5 and 6.

b. Use three-year weighted moving average with weight 3, 2, 1 (largest weight is for the most

recent data) to forecast the demand for periods 5 and 6.

c. Use exponential smoothing with smoothing constant of 0.2 to forecast the demand for periods

5 and 6, assuming the forecast for period 4 is 15.

Usetrend-adjustedexponentialsmoothingtoforecastthedemandforperiods5and6,

assuming α=0.2, β=0.4, S3=15, and T3=1.

e. What is the most accurate method?

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