Posted: March 9th, 2016

Simple moving average n = 3 – Exponential Smoothing with alpha = 0.4 – Exponential Smoothing with trend Adjustment (alpha = 0.2, beta = 0.4, T1 = 5, F1 = 49)

Among the following three forecasting methods, which method should be used to forecast the demand for this product? Why? (11 marks) – Simple moving average n = 3 – Exponential Smoothing with alpha = 0.4 – Exponential Smoothing with trend Adjustment (alpha = 0.2, beta = 0.4, T1 = 5, F1 = 49)
Note: Please show all calculation and graphs and explain the steps
b. Is the production process in control? Why? (3 marks) c. Is the production process capable? Why? (3 marks) d. What proportion of the production in this process will meet customer requirements? (3 marks)