The demand manager of Maverick Jeans is responsible for ensuring sufficient warehouse space for the finished jeans that come from the production plants. It has occasionally been necessary to rent public warehouse space, something that Maverick would like to avoid. In order to estimate the space requirements, the demand manager is evaluating moving-average forecasts. The demand (in 1,000 case units) for the last fiscal year is shown below. Month 1 2 Demand 20 18 3 21 4 5 25 24 6 7 8 27 22 30 9 10 11 12 23 20 29 22
The demand manager of Maverick Jeans is responsible for ensuring sufficient warehouse space for the finished jeans that come from the production plants. It has occasionally been necessary to rent public warehouse space, something that Maverick would like to avoid. In order to estimate the space requirements, the demand manager is evaluating moving-average forecasts. The demand (in 1,000 case units) for the last fiscal year is shown below. Month 1 2 Demand 20 18 3 21 4 5 25 24 6 7 8 27 22 30 9 10 11 12 23 20 29 22
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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a. Use a 3-month moving average to estimate the month-in-advance forecast of demand for months 4–12 and generate a forecast for the first month of next year. Calculate the average forecast error and mean absolute error.
b. Use a 3-month weighted moving average with weights of 0.6, 0.3, 0.1 (most recent to least recent, respectively) to calculate month-in-advance forecasts for months 4–12 and forecast for the first month of next year. Calculate the average forecast error and mean absolute error.
c. Compare the average forecast error and MAD for the
Transcribed Image Text:6. The demand manager of Maverick Jeans is responsible for ensuring sufficient warehouse space for the finished jeans that come from the production plants. It has occasionally
been necessary to rent public warehouse space, something that Maverick would like to avoid. In order to estimate the space requirements, the demand manager is evaluating
moving-average forecasts. The demand (in 1,000 case units) for the last fiscal year is shown below.
Month
1
Demand 20
2
18
3
21
4
25
5
24
6
7
8
27 22 30
9 10
23 20
11 12
29 22
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