The monthly demand for units manufactured by the Acme Rocket Company has been as follows:Month Units Month UnitsMay 100 September 105June 80 October 110July 110 November 125August 115 December 120a. Use the exponential smoothing method to forecast the number of units for June to January. The initial forecast for May was 105 units; α = 0.2.b. Calculate the absolute percentage error for each month from June through December and the MAD and MAPE of forecast error as of the end of December.c. Calculate the tracking signal as of the end of December. What can you say about the performance of your forecasting method?

The monthly demand for units manufactured by the Acme Rocket Company has been as follows:Month Units Month UnitsMay 100 September 105June 80 October 110July 110 November 125August 115 December 120a. Use the exponential smoothing method to forecast the number of units for June to January. The initial forecast for May was 105 units; α = 0.2.b. Calculate the absolute percentage error for each month from June through December and the MAD and MAPE of forecast error as of the end of December.c. Calculate the tracking signal as of the end of December. What can you say about the performance of your forecasting method?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 28P: The file P13_28.xlsx contains monthly retail sales of U.S. liquor stores. a. Is seasonality present...

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