San Diego State University Operations And Supply Chain Management Assignment Help - Forecasting

Question - The following data represent 15 quarters of manufacturing capacity utilization (in percentages).
Quarter/Year Utilization Quarter/Year Utilization
1/1996 82.5 1/1998 78.8
2/1996 81.3 2/1998 78.7
3/1996 81.3 3/1998 78.4
4/1996 79.0 4/1998 80.0
1/1997 76.6 1/1999 80.7
2/1997 78.0 2/1999 80.7
3/1997 78.4 3/1999 80.8
4/1997 78.0
a)Using a smoothing constants of a = 0.4 develop forecast for the fourth quarter of 1999. Assume an
initial forecast for the first quarter of 1996 as 81.0 percent.
b)Use trend – adjusted exponential smoothing with a = 0.1 and ß = 0.2 to develop forecast for the
fourth quarter of 1999. Assume an initial forecast for the first quarter of 1996 as 81.0 percent and the
initial trend adjustment is 0. ...Read More
c)In each case calculate the MAD.
d)Based on the analysis in parts (a), (b) and (c) which method provides the better forecast? Explain. ...Read Less

Solution Preview - No Solution Preview Available

Original Question Documents

N/A