Welcome to your Demand Forecasting – Part 2
1.
Following are the measurements of forecasting error:
a) Mean Squared Error
b) Standard Deviation
c) Mean Absolute deviation
d) Mean Absolute percent error
2.
By clustering several similar products or services in a process called aggregation, companies can obtain more accurate forecasts:
3.
Seasonal variations in forecasting have a high degree of predictability.
4.
A department store may find that in a four month period the best forecast is derived by using 40 percent of the actual sales (in units) for the most recent month, 30% of two months ago, 20 percent of three months ago and 10 percent of four months ago. The actual unit sales were as follows:
Month 1: 100
Month 2: 90
Month 3: 105
Month 4: 95
Month 5: 110
Find out the forecast for month 6
5.
Errors caused by inaccurate estimation of components of demand such as trend, seasonality and cyclical movements is classified as :
