# Forecasting Exercise

You are the supply chain manager for
an electronics-manufacturing company. In this assignment, you will use the
following data to obtain forecasts for your company through various forecasting
techniques.

 Quarter Forecast Actual Demand Error 4Q 2008 200 220 1Q 2009 220 215 2Q 2009 215 210 3Q 2009 210 220 4Q 2009 220 225 1Q 2010 225 240 2Q 2010 240 255 3Q 2010 260 4Q 2010 270 1Q 2011

Consolidate the results of the
following problems in a 2- to 3-page report in a Microsoft Word document. Do
not use Microsoft Excel utilities for this assignment.

• Using the three quarters moving average, find out the
forecasts for 3Q 2010, 4Q 2010, and 1Q 2011.
• Compute the forecasts for 3Q 2010, 4Q 2010, and 1Q 2011
using exponential smoothing with a smoothing factor of 0.6.
• Compute the forecasts for all quarters of 2010 using
the three quarter weighted moving average, with the most recent data
weighted at 0.5, the second-most recent data weighted at 0.35, and the
third-most recent data weighted at 0.15.
• Using the data provided in the above table, explain
what forecasting techniques are being used for 2008 and the first two
quarters of 2009.
• Computed the forecasting error using the exponential
smoothing technique.
• Computed the forecasting error using the weighted
moving average method.
• On the basis of your calculations, explain which
technique provides the most accurate forecast for your company. Explain

Using the APA format, cite the
sources you use on a separate page. 