Demand data on "Service Orders" for a particular service enterprise for the previous 12 months is...

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Demand data on "Service Orders" for a particular serviceenterprise for the previous 12 months is as follows: 550, 652, 673,707, 725, 752, 780, 797, 815, 836, 850, and 872. Problem 3b) Usethe following three methods and prepare three forecasting tableswith errors for the given demand data. • a 3-month Weighted MovingAverage with the weights 0.6, 0.3, and 0.1 with the maximum weightgoing for the most recent data point into the past • ExponentialSmoothing with smoothing constant = 0.9 • Linear TrendRegression

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4.3 Ratings (685 Votes)

Month	Service order	3 month Weighted average
1	550
2	652
3	673
4	707	654.4
5	725	691.3
6	752	714.4
7	780	739.4
8	797	766.1
9	815	787.4
10	836	806.1
11	850	825.8
12	872	842.3

b) Exponential smoothing method

Month	Service order	Exponential smoothing
1	550	550
2	652	550
3	673	641.8
4	707	669.88
5	725	703.288
6	752	722.8288
7	780	749.08288
8	797	776.908288
9	815	794.990829
10	836	812.999083
11	850	833.699908
12	872	848.369991

c) Linear trend

Sum of X = 78
Sum of Y = 9009
Mean X = 6.5
Mean Y = 750.75
Sum of squares (SS_X) = 143
Sum of products (SP) = 2997.5

Regression Equation = ? = bX + a

b = SP/SS_X = 2997.5/143 = 20.96154

a = M_Y - bM_X = 750.75 - (20.96*6.5) = 614.5

? = 20.96154X + 614.5

Month	Service order	Linear trend
1	550	635.46154
2	652	656.42308
3	673	677.38462
4	707	698.34616
5	725	719.3077
6	752	740.26924
7	780	761.23078
8	797	782.19232
9	815	803.15386
10	836	824.1154
11	850	845.07694
12	872	866.03848

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