Consider the manager of a large department store. Among other responsibilities, she is in charge of inventory control so that she needs good forecasts of department sales. Think about the costs of overstocking and understocking merchandise, and recommend a loss function that she should use to produce her forecast.

A seasonal index for a monthly series is about to be calculated on the basis of the past four years' accumulation of data. The four previous July values were 110, 135, 125, and 130. The four previous total year values were 1440, 1920, 1920, and 2400.   Calculate the seasonal index for July If the total-year forecast for next year is 2400. What is the July forecast for next year?

Whitebridge Hardware Store Whitebridge Hardware Store has a monthly demand for lawn fertilizer listed below. The gardening season starts in early spring when people want to fertilize their lawns. Period Demand Jan 59 Feb 68 March 91 April 145 May 182 June 212 July 193 Aug 174 Sept 144 Oct 89 Nov 74 Dec 55 Answer Questions 1 – 5 below. [Be sure to watch the video on how to complete your forecasting problem, in the content module.] Everything must be typed including the graph. You need to complete this assignment in Excel. For the narrative answers, you can include them in Excel in one or more of the empty cells. If you know how to add an extra worksheet, you can add your answers on a new worksheet. Or you can type them in a Word document Please include your name somewhere. In the Assignments area, a…

The actual demand of a product for six months are summarized in the table below:   Month (t) Demand Dt     1 80 2 90 3 70 4 100 5 70 6 90       Find three months weighted moving averages by assuming the weights, W1 =1, W2 = 0.4 and W3 = 0.5         ii. Compute the mean forecast error   iii. Compute the mean square error (MSE)   iv. Compute the mean absolute deviation (MAD).   v. Mean absolute percent error (MAPE)