Time-Series Forecast Models EXAMPLE Monthly Sales ( in units ) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Data Point or (observation) MGMT E-5070 Data Mining and Forecast Management Wallace Garden Supply

MGMT E-5070 Storage shed sales over the past year were as follows:

Wallace Garden Supply REQUIREMENTS: Predict sales for next January via : naïve 1.The naïve model. moving average 2.The 3 - month moving average model. weighted moving average 3.The 3 - month weighted moving average model with weights of 3, 2, 1 respectively. exponential smoothing 4. The exponential smoothing model with ά =.7 trend projection 5. The trend projection model. 6. Which model is the most accurate?

Applied Management Science for Decision Making, 2e © 2014 Pearson Learning Solutions

Forecast Model Options

Performance Summary Naïve

Performance Summary Naïve BEST ( lowest )

Forecasting with Excel

Forecasting with Excel QM 4

Time-Series Forecast Models EXAMPLE Monthly Sales ( in units ) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Data Point or (observation) MGMT E-5070 Data Mining and Forecast Management Wallace Garden Supply