Farquart Focus Capacity Question: June Forecast and March Demand
been 14, 23, 12, 17 and 18. Farquart Focus has a focus forecasting system (naturally)
using just two forecasting techniques. The first is a two-period moving average
and the second is simply that this period’s demand will equal last period’s.
Farquart uses the MAD for the past three months as the criterion for choosing
which model will make the forecast for the next month.
a. What will the forecast be for June and which model will
be used?
b. Would it make any difference if demand for March had been
30 instead of 12?
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