Observations of the demand for a certain part stocked at a parts supply depot during the calendar year 2013 were: Month demand Month demand January 89 July 223 February 57 August 286 March 144 September 212 April 221 October 275 May June 177 November 188 280 December 312 a) Using a four-month moving average, determine the one-step-ahead forecast for July through December 2013. b) Using a four-month moving average, determine the two-step-ahead forecast for July through December 2013. c) Obtain the MAD for the forecasts obtained in the above sections. Which method gave better results? Based on forecasting theory, which method should have given better results?

Observations of the demand for a certain part stocked at a parts supply depot during the calendar year 2013 were: Month demand Month demand January 89 July 223 February 57 August 286 March 144 September 212 April 221 October 275 May June 177 November 188 280 December 312 a) Using a four-month moving average, determine the one-step-ahead forecast for July through December 2013. b) Using a four-month moving average, determine the two-step-ahead forecast for July through December 2013. c) Obtain the MAD for the forecasts obtained in the above sections. Which method gave better results? Based on forecasting theory, which method should have given better results?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter6: Target Markets: Segmentation And Evaluation

Section: Chapter Questions

Problem 17DRQ: Under what conditions might a firm use multiple forecasting methods?

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Under what conditions might a firm use multiple forecasting methods?
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