Describe double exponential smoothing, Operation Management

Assignment Help:

The Cardinal Electronics Company must project the sales of cellular phones for the next year (called year 2). The number of cell phones sold by Cardinal Electronics in each of the past 6 months (July of year 1 through December of year 1) is shown below. Month Number of Cellular Phones Sold July 183 August 215 September 294 October 333 November 410 December 438 a. Forecast the number of cellular phones demanded in January of year 2 using a rolling (i.e. updated at end of each month when new demand data becomes available) 4-month linear regression model. For example, forecasts generated at the end of October are made by fitting a linear regression to the demands in months July through October and forecasts generated at the end of December are made by fitting a linear regression to the demands in months September through December. Forecast the number of cellular phones demanded in July of year 2. Calculate the MAD, MSE, and MAPE for a rolling 4-month linear regression model. b. Using Double Exponential Smoothing (DES) with ? = 0.15 and ?= 0.10 (i.e. assume the data has a linear trend pattern), forecast the number of cellular phones demanded in January of year 2. Forecast the number of cellular phones demanded in July of year 2. Calculate the MAD, MSE, and MAPE for your double exponential smoothing model. c. Based on the measures of forecast accuracy you calculated for the part a) linear regression model and the part b) DES (0.15, 0.10) model, which model is a better fit for this data?


Related Discussions:- Describe double exponential smoothing

Why is it important to view the whole person, Why is it important to view "...

Why is it important to view "the whole person" as a human services professional, rather than focus on the problem at hand?

Define how constraints in manufacturing are interrelated, Explain how const...

Explain how constraints in manufacturing are interrelated with a company's decisions regarding volume and variety

Explain what remedies are available to him, Kristina places an order for a ...

Kristina places an order for a cake on Flowers bakery's web site. She then calls the baker to tell him that she will pay him $1000 for the specially designed cake if he will guaran

Customer satisfaction and service quality, Customer Satisfaction and Servic...

Customer Satisfaction and Service Quality - Operation Strategy Although you have seen examples of the dimensions along which companies compete and approaches to operations st

Location decision and layout selection, 1. general procedures for making lo...

1. general procedures for making location decision 2. factors to consider in layout selecgtion

Explain intangible assets and human capital, Companies are now more and mor...

Companies are now more and more interested in using intangible assets and human capital as a way to gain an advantage over competitors. True False

Change Management in Process/Systems?, main principles of project managemen...

main principles of project management aiding the operations manager/manageress in introducing change to the process/system?

Coca colas change in sales remain competitive and profitable, How would you...

How would you respond to Coca Cola's change in sales policy? How would you ensure Pepsi's board that this response will allow you to remain competitive and profitable?

Aims of trade off in business strategy - operations focus, Aims of Trade of...

Aims of Trade off in Business Strategy - Operations Focus The aim of operations focus is to ensure that, along with the other management functions, all of the operations workf

Explain legal and ethical behaviour in marketing, Describe the difference b...

Describe the difference between legal and ethical behaviour in marketing. Give an example of each as it pertains to marketing

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd