Use the following table to answer questions: Period Actual Demand Forecast Demand Error *

June 2, 2016

Question
DISTRIBUTION MANAGEMENT

Use the following table to answer questions:

Period

Actual Demand

Forecast Demand

Error

Absolute Value

1

800

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1100

-300

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300

2

1200

1000

200

200

3

1400

1500

-100

100

27. What is the Mean Absolute Deviation (MAD)?

a. 200

b. 225

c. -66.67

d. 1200

The demand for each year for a product is shown in the table below.

Year Demand Forecast

1= 45 2 =50 3= 52 4 =56 5= 58, 6 –?

28. Using the 3-month moving average approach, compute the forecast for the year 6 (rounded to whole numbers) is:

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a. 147

b. 49.

c. 166.

d. 55.

The demand for each year for a product is shown in the table below.

Year Demand Forecast

1= 45 2= 50 3= 52 4= 56 5= 58, 6 —-?

29. Using the 3 – month Weighted Moving Average approach (the weights are 0.5, 0.3, and 0.2), the forecast for the year 6 (rounded to whole numbers) is:

1.49

2.51.

3.56

4.None of the above