Business

Mclaughlin

9 August, 17:52

You are a manager at Asda. You have been given the demand data for the past 10 weeks for swim rings for children. You decide to run three different types of forecasting methods on the data to see which gives you the best forecast.

Week Demand

12 1317

13 1307

14 1261

15 1258

16 1267

17 1256

18 1268

19 1277

20 1277

21 1297

(a) If you were to use exponential smoothing with alpha =.3, what would be your forecast for week 22? (The forecast for week 21 was 1272.)

(b) Using a 3-period weighted moving average (most recent=.6; second-most recent=.3, least recent=.1), what is the forecast for week 22?

(c) If you were to use a 3-period simple moving average, what would be your forecast for week 22?