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The Midwestern Manufacturing Company (MMC) is a large manufacturer of electrical generators. The firm has experienced demand for their generators as shown below:
Year Demand
2003 74
2004 79
2005 80
2006 90
2007 105
2008 142
2009 122
For the questions below, create EXCEL worksheets naming the tabs as indicated.
a. Calculate a forecast for 2010 using a 3 year moving average. Place your results in a worksheet tab named Q1.
b. Calculate a forecast for 2010 using exponential smoothing. Use .7 as your Alpha value. Place your results in worksheet tab Q1.
c. Using Mean Absolute Deviation as your criteria, determine which method performs best. Explain your decision. Place your results in worksheet tab Q1.
Q1.(i) The logistics department of a large firm employs three "estimators" whose job it is to decide the likely cost of delivering their products to their customers. This enables
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methods of determining trend in time series
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