QUESTION 6: Demand for sets of mag wheels at a dealership for the past 12 months is shown below.
MONTH
Demand for mag wheels: 170, 210, 190, 230, 180, 160, 200, 180, 220, 200, 150, 220
1, 2, 3, 4, 5, 6, 7, 8, 6, 10, 11, 12
6.1. Assuming an initial forecast for month 1 of 170 sets, use exponential smoothing to compute the forecast for weeks 2 through 12. Use α = 0.2. (8)
6.2. What is the MAD for this model? (2)
6.3. Compare the RSFE and tracking signals. Are they within the limits? (2)