MBAA 523 Henry Clements/TUTORIALOUTLET DOT COM MBAA 523 Henry Clements/TUTORIALOUTLET DOT COM | Page 2

does not try to anticipate
particular size or model requests and lets randomness take care of
that. Weekly demand is as
follows.
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6 126
200
243
167
132
211 Week 7
Week 8
Week 9
Week 10
Week 11
Week 12 243
167
131
208
251
171 In the past Henry has used the average number of cars as his
basic number and adjusted
to meet his goal of 95% service. He asks you about some other
methods he has heard about.
1. What should his forecast be using his method? What are the mean
and standard deviation
of the demand?
2. What would the forecast be if he used regression analysis? What is
the regression
formula? What is the r value?
3. What about time-series forecasting? There are at least six time-
series methods. Which is
best? What is the MAD of each option?