Estimate demand for the next three using a 3-month moving average, simple exponential: Strategic Supply Chain Management Assignment, SIM, Singapore

University Singapore Institute of Management (SIM)
Subject Strategic Supply Chain Management

Demand for Varsity Letterman jacket at Teens Forever for the last 12 months is as follows:

a) Estimate demand for the next three using a 3-month moving average, simple exponential smoothing with a = 0.1, and Holt’s model to estimate the demand with a = 0.1 and fl = 0.2.

b) Evaluate the MAD, MAPE, bias, and TS (i.e., the KPIs) in each case. Which of the three methods is better? Why?

c) What should the values of a and in Holt’s model be in order to minimize the MAD?

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