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Question - Demand (Yt) for milk (in gallons) at a local grocery store is as follows during the past 8 months.
Week
Demand (Yt)
1
200
2
210
3
190
4
185
5
198
6
205
7
195
8
207
1. What are the forecasted demands (Ft) using the 3 MA (3-period moving average) method and the exponential smoothing method (use α =0.2)? Please show all the relevant calculations.
2. Calculate the MAE, MSE & MAPE values for the 3 MA (3-period moving average) method and the exponential smoothing method ( use α =0.2). Please show all the relevant calculations. Which method do you recommend for future demand predictions based on the MAPE criterion and why?
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