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Internal

Operations

MGMT-6081

–

SCM

Student Name (As it appears in the class list)

Student Number

Section

Module 08 – Chapter 12

Forecasting

Super Hog

Motorcycles

A motorcycle dealer in the Ottawa area wants to be able to accurately forecast the

demand for the “Super Hog” motorcycle during the next month. From the sales records,

the dealer has accumulated data in the following table for the past year.

Month

Motorcycle Sales

January

February

March

April

May

June

July

August

September

October

November

December

Compute a three month moving average forecast of demand for April through

January

(of the next year)

Show your calculations

Compute a five-month moving average forecast for June through January (

of the

next year

Show your calculations

Compare the two forecasts computed in parts A and B using MAD

(Mean Average

Deviation).

Which one should the dealer use for January of next year? Why?

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