Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Compute a 3-month weighted average forecast for months 4 through 9. Assign weights of 0.55, 0.33 and 0.12 to the months in sequence, starting with the most recent month. Compare the two forecasts using MAD. Which forecast is better the 3-month moving average or the 3-month weighted moving average and why?

Compute a 3-month weighted average forecast for months 4 through 9. Assign weights of 0.55, 0.33 and 0.12 to the months in sequence, starting with the most recent month. Compare the two forecasts using MAD. Which forecast is better the 3-month moving average or the 3-month weighted moving average and why?

Practical Management Science
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...
See similar textbooks
icon
Related questions
Question

Compute a 3-month weighted average forecast for months 4 through 9. Assign weights of 0.55, 0.33 and 0.12 to the months in sequence, starting with the most recent month. Compare the two forecasts using MAD. Which forecast is better the 3-month moving average or the 3-month weighted moving average and why?

123456789 10 A Month 1 2 3 4 5 6 7 8 9 B C Demand for Bronze Bearings 3-month Moving Average Error 50 100 60 80 140 100 90 120 70 80 93.33333333 106.6666667 110 103.3333333 D 10 60 E 10 Error² 100 3600 6.666666667 44.4444444 -16.66666667 277.777778 100 -103.3333333 10677.7778
Transcribed Image Text:123456789 10 A Month 1 2 3 4 5 6 7 8 9 B C Demand for Bronze Bearings 3-month Moving Average Error 50 100 60 80 140 100 90 120 70 80 93.33333333 106.6666667 110 103.3333333 D 10 60 E 10 Error² 100 3600 6.666666667 44.4444444 -16.66666667 277.777778 100 -103.3333333 10677.7778
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
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,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS