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Sales of music stands at Johnny Ho music store in Columbus, Ohio, over the past 10 weeks are shown in the table below.
a) Forecast demand for each week, including week 10, using exponential smoothing with α = .5 (initial forecast = 20).
Week Demand Week Demand1 20 6 292 21 7 363 28 8 224 37 9 255 25 10 28
b) Compute the MAD.
c) Compute the tracking signal
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Using the data, suppose the manufacturer has an inflated demand forecast as follows: Quantity Probability 2,200 5% 2,300 6% 2,400 10% 2,500 17% 2,600 30% 2,700
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