The manager fo the Petroco Service Station wants to forecast the demand for unleaded gasoline next month so that the proper number of gallons can be ordered from the distributor. The owner has accumulated the following data on demand for unleaded gasoline from sales during the past ten months:
Month Gasoline Demanded (gal)
Compute an exponentially smoothed forecast using an symbol a which stand for a weighting factor referred to as the smoothing constant of a value of .30
Compute an adjusted exponentially smoothed forecast with a which stand for a weighting factor referred to as the smoothing constant =.30 and B.20
Compute the two forecast by using MAPD and indicate which seems to be more accurate© BrainMass Inc. brainmass.com October 25, 2018, 1:57 am ad1c9bdddf
Two Exponential Smoothed Forecasts have been performed in Excel using two different smoothing constants of 0.02 and 0.03. Forecast Error, MAD and MAPD have been calculated and comparison between the two forecasts using these MAD and MAPD values has been shown.
Moving Average Forecast, Exponential Smoothing Forecast, Adjusted Exponential Smoothing Forecast, MAD, MAPD, Cumulative Error, Comparison among different Forecast Techniques and Regression Analysis
1. The saki motorcycle dealer in Minneapolis wants to make an accurate forecast of demand for the Saki Super TXII motorcycle during the next month.
Because the manufacturer is in Japan, it is difficult to send motorycles back or reorder if the proper number is not ordered a month ahead.
From sales records, the dealer has accumulated the following data for the past year:
Month Motorcyle Sales
a) Compute a 3-month moving average forecast of demand for April thru January of the next year
b) Compute a 5-month moving average forecast for June thru January
c)Compare the two forecasts computed in (a) and (b) using MAD-which should be used next year January?
2. The chairperson of the department of management at State University wants to forecast the number of students
who will enroll in production and operations mgmt next semester-- in order to determine how many sections to schedule.
The chair has acumulated the following enrollment data for the past 8 semesters:
Semester Students enrolled
a) Compute a three semester moving average forecast for semesters 4 thru 9
b)compute the exponentially smoothed forecast for the enrollment data α = 0.20
c) compare the two forecasts using MAD-which is more accurate?
3. Whistle Stop Café is well known for its homemade ice cream, made in a small plant in back of café. People drive
all the way from Atlanta and Macon to buy the ice cream. The two women who own the cafe want to develop a forecasting model
so they can plan their ice cream production operation and determine the number of employees they need to sell ice cream in the café.
They have accumulated the following sales records for their ice cream for the past 12 quarters:
Year Quarter Ice Cream sales(gallons)
2003 1 350
2004 5 370
2005 9 450
Develop an adjusted exponential smoothing model with α = 0.50 and β = 0.50 to forecast demand and assess
its accuracy using cumulative error(e) and average error. Does there appear to be any BIAS in the forecast?
4. Aztec Industries has developed a forecasting model that was used to forecast during a 10-month period.
The forecasts and actual demand were as follows:
Month Actual Demand Forecast Demand
1 160 170
2 150 165
3 175 157
4 200 166
5 190 183
6 220 186
7 205 203
8 210 204
9 200 207
10 220 203
Measure the accuracy of the forecast by using MAD, MAPD, and cumulative error.
Does forecasting method appear to be accurate?
5. The manager of Ramona Hotel believes that how well the local Blue Sox professional baseball team is has an impact on the occupancy rate at the hotel during summer months.
Following are the number of victories for the Blue Sox( in a 162-game schedule) for the past 8 years and the hotel occupancy rates:
Year Blue Sox Wins Occupancy Rate in %
1 75 83
2 70 78
3 85 86
4 91 85
5 87 89
6 90 93
7 87 92
8 67 91
Develop a linear regression model for these data and forecast the occupancy rate for the next year if Blue Sox wins 88 games.View Full Posting Details