LGMT Presentation - Forecasting Methods

Question # 00850133 Posted By: wildcraft Updated on: 01/31/2024 08:30 PM Due on: 02/01/2024
Question

LGMT Presentation - Forecasting Methods

4.3  Forecasting Methods

Assignment: Case Study - Video Presentation

Case Study Overview

You have recently been assigned to the production planning department within your company.  Your firm makes large blades for power generation windmills. The windmills are mostly used in the western part of the country and take about a week to build.

Your boss has provided you with the monthly demand for blades from the last year and asked that you produce a forecast for January so that he can work with the material planning and scheduling department to make sure that the required materials are on hand and schedule the workers hours.

By the end of the week, your boss has asked you to produce a professional video presentation with all of the needed data so that he can brief his boss on your findings.

Using the data provided, produce forecasting models using the following:

· Simple Moving Average (on a 4 month moving average)

· Weighted Moving Average (4 month moving average with weights = 0.4, 0.3, 0.2. 0.1)

· Exponential Smoothing (α = 0.3) (assume forecast for January is the same as the actual demand)

Provided Data for Forecasting Modules

 Demand January 1750 February 1700 March 1650 April 1600 May 1625 June 1650 July 1650 August 1750 September 1750 October 1600 November 1550 December 1500

Demand Data Chart of Last Two Years

Demand Data Chart of the Last Two Years Download Demand Data Chart of the Last Two Years

Sample Excel® Assignment

The below video provides tips on using Excel® functions to assist you with this assignment.

LGMT 440 Video - Forecasting Transcript (PDF) Download LGMT 440 Video - Forecasting Transcript (PDF)

Questions

1. While the MAD can be used to determine which forecasting method is the most accurate, normally, the MAPE is a better measure. So, compare the MAPE of the three methods and determine which is the best model (e.g. the most accurate).

2. Base on the chosen model, what should you recommend to your boss as the forecasted demand for January?

3. Produce a line chart that shows all three of the forecast and the actual demand.

4. Review the chart and the data. Do you think that the forecasts have given you an accurate result? Do you notice any trends in the data that could affect the January forecast? If so, what would you recommend to your boss?

Forecasting Models

· Simple Moving Average (on a 4 month moving average)

· Weighted Moving Average (4 month moving average with weights = 0.4, 0.3, 0.2. 0.1)

· Exponential Smoothing (α = 0.3) (assume forecast for January is the same as the actual demand)

Deliverable - Video Presentation

Video Presentation

Your boss has asked you to produce a professional video presentation with all of the needed data so that he can brief his boss on your findings. Produce a 2-3 minute  professional video presentation on a forecast with a chart and answer all of the questions with your recommendations. Make sure your video presentation is of high quality since your boss may wish to show your results to his boss.

Use 'Studio' with PowerPoint® slides to create your video presentation. Review the information on the  Presentation Guide  for assistance.

Tutorials for this Question
1. Solution: LGMT Presentation - Forecasting Methods

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