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Operational management: Calculate Sales Forecasts

3 The following tabulations are actual sales of units for six months and a starting forecast in January.

a. Calculate forecasts for the remaining five months using simple exponential smoothing with α = 0.2.

b. Calculate MAD for the forecasts.
ACTUAL FORECAST
January 100 80
February 94
March 106
April 80
May 68
June 94

Solution Preview

Please see the attached file.

t Month Actual Smoothed Forecast % error
1 January 100 84.0 ...

Solution Summary

This solution shows step-by-step calculations in an Excel file to determine sale forecast from January to June using simple exponential smoothing. A mean squared error, mean absolute percent error and percent positive errors are also calculated.

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