Question

nstructions You are responsible for creating the weekly forecast for Products X, Y, and Z for War Eagle Trading Company (WETCO). Create and evaluate forecasts as described in questions 1-10 below. Enter your answers in the table provided at the bottom of the assignment. All forecasts should be reported to the nearest whole number. Use the following in creating all forecasts: a7 W.6 n 3 W 3 Wa1 W 01 Demand for weeks 1-9 for each product is shown below. Product X Product Y Product Z Historical Historical Historical Week Demand Week Demand Week Demand 1 $ 2 $ 3 $ 4 $ 5 $ 1 $ 1 S 5,000 7,500 5,100 4,700 4,700 4,900 5,100 4,900 5,000 2 S 2 $ 4,800 4,800 3,000 3 S 3 S 3,900 4 S 5 $ 6 $ 4 $ 5,100 8,100 5 $ 4,600 4,900 4,300 4,000 4,300 2,800 2,900 8,800 3,200 6 $ 6 $ 7 $ 8 $ 9 $ 7 $ 7 $ 8 S 8 S 5,100 9 $ 9 S 7,500 4,900 1) Create a Simple Moving Average Forecast for Week 10 for each product. Weighted Moving Average Forecast for Week 10 for each product 2) Create a 3) Create an Exponential Smoothing Forecast for Week 10 for each product. Use the average of weeks 1-8 as the forecast value for week 9. 4-6) Assume week 10 actual demand for each product is shown below. Create SMA. WMA, and ES forecasts for week 11 each product Product Z Product X Product Y Historical Historical Historical Week Demand Week Demand Week Demand 10 $ 10 $ 10 $ 3,800 4,100 4,800 7-9) Assume the week 11 actual demand for each product is $5,000. Calculate the Mean Absolute Distribution for each product / each forecast based on the results for weeks 10 and 11 only 10) Which forecast method produced the most accurate forecasts for each product? Answer Sheet Product Y Product X Product Z Week Week Forecast Week Forecast Forecast Q1) SMA Forecast 10 10 10 Q2) WMA Forecast 10 10 10 Q3) ES Forecast 10 10 10 04) SMA Forecast 11 11 11 Q5) WMA Forecast 11 11 11 06) ES Forecast 11 11 11 MAD MAD MAD Q7) MAD SMA Q8) MAD WMA Q9) MAD ES Best Best Best Q10) Best Forecast

Answer 1

Produet y Protuet Portuct 4300 t4000 4300 500+ 3,200 t8 80 L 900 t 5,1005000 I.SMA 3 (n-3 Fio) z 6,500 5,000 Fo 4,200 FoYmula For Reduax 0-6 4.300) + 6.3 4Dod)+(or)300) (0-0 Aoo) H21683 0.6+ 0.3 + O.t O.0 421구 Poduct y 6306 For Product Z for 49구0 Pruducyy Product 2 Product x ES Producks th averoge 1-S 5137.5 4937.5 ( 4595 6791-25 L873.754 F(F.), 4575 300- 4575 + O. 438 2-5 Fox REDMI NOTE 5 PRO MI DUAL CAMERA

Week SMA tore Cast 4034 4934 H934 WMA 3974 5068 4862 6 ES 4908 3975 4823 I D-FI Actual Devont MAD SMA ((mAD)m) 3800-4200 683 2 5.00 -H934 100-6 500 y 233 MADEN 2 Sintlasdy (MAD SMA 2 133 (MAD) WMA 154 l0 69 F21-5 25-5 (MAD)ES |392 ES SMA (10 Best Forcast MAD wMA MAD)ES SMA is is least &Least (east X REDMI NOTE 5 PRO MI DUAL CAMERA